Finland Invokes Emergency Powers to Slow Coronavirus Spread

(Bloomberg) --

Finland’s government is preparing to invoke emergency powers to combat the spread of the novel coronavirus and has unveiled 5 billion euros ($5.6 billion) worth of measures to help its economy.

Borders will be closed, schools and universities shut and public gatherings limited to 10 people, Prime Minister Sanna Marin told reporters in Helsinki on Monday. Cargo transport will continue and daycare centers will stay open.

A decree invoking the Emergency Powers Act for the first time during peace time is set to be discussed by parliament on Tuesday.

The economic measures include about 27 million euros in extra spending on health care and about 73 million euros to stave off acute corporate funding pressures. It will also defer corporate tax payments. The State Pension Fund will buy 1 billion euros worth of commercial paper and the government will increase Finnvera Oyj’s capacity to guarantee loans to small and medium-sized companies by 2 billion euros.

Finland joins Denmark and Norway in closing schools, which continue to operate in Sweden. Large gatherings have been banned across the Nordic region and swathes of workers sent home, as the number of people infected by the coronavirus climbs. Finland is likely already in a recession, economists at Nordea Bank Abp said last week.

Marin said the government doesn’t have an estimate of the number of infected in Finland. It’s confirmed 272 cases, up from 30 a week ago, but hasn’t been able to guarantee testing for all exposed to the virus. The government plans to add testing capacity, though that will only help it analyze the outbreak afterward, Marin said.

To contact the reporter on this story: Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net

To contact the editors responsible for this story: Tasneem Hanfi Brögger at tbrogger@bloomberg.net, Nick Rigillo

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