Finland’s government yesterday proposed increasing capital gains tax and income tax on high earners to help pay for a 10-fold increase in refugees expected to arrive this year, its finance minister said.

The EU migrant crisis proposes a political as well as a financial challenge for the coalition, whose foreign minister, Timo Soini, heads the Eurosceptic party, The Finns, which campaigned for tighter controls on immigration.

Finance Minister Alexander Stubb said the highest bracket of capital gains tax would be raised by one percentage point while people earning more than €72,300 would be required to pay a so-called solidarity tax for two years, lowering the threshold from €90,000.

“These will help to cover higher immigration costs,” Stubb said.

The centre-right coalition, which took office in May, is struggling to cut government spending quickly in a shrinking economy where unemployment is on the rise. The government agreed before the summer that any EU plan to apportion asylum seekers among EU states should be voluntary.

The government also announced that in a show of solidarity members of parliament would be required to take a week’s unpaid holiday and all ministers would forgo a week’s pay.