07/17/07
A common question in the Alandish secession debate has been if an independent Aland would be able to sustain a Scandinavian welfare model. The question is also present in the ongoing debate on the transfer of taxationkompetence to local government. In the framework for autonomy the latter question has been endorsed by all political parties in Åland.

Last week, Alands Framtid issued a report on the budget of an independent Aland. The report is based upon a precautionary approach, as it aims to create a debate based upon facts and figures. It aims to serve as a platform for further discussion concerning Finnish dependency.

The presented report doesn't include budget optimizing functions that are available in independent states, but it does show that independence would certainly have a beneficiary impact on the local economy. Today, the division of competence has created a lack of transparency A transfer of tax competence would, according to the authors, ultimately provide new possibilities concerning core mechanisms of the local economy. However this will also incur new responsibilities for the elected officials. A separate Alandsish economy would be a significant tool to consolidate and develop important functions such as environment, structure and social welfare. It would ensure stability in economic growth in accordance with the Scandinavian model.

Finally the report shows that the final cost of independence would be 53 million Euros. However the total amount of revenues would increase from the current 293 million Euros to 333 million Euros. For further information please read:

http://www.alandsframtid.nu/images/stories/dokument/statsbudget_aland_2007.pdf
(only available in Swedish)

Andreas Dahlén