Government spending as a percentage of GDP is much higher in Finland than in the US; they have a big welfare state. That's the primary way in which they are socialist. Overall, it's still a free market economy though, much much better than the likes of Norway or France. The government isn't setting prices or levying 50% taxes against anyone.
The "system" of taxation in Scandinavia is very different from the one of the US and most scandinavian employees, consumers as well employers use all kind of methods in order to "elude" this system.
The inhabitants of Scandinavia are often (especially in the US) viewed as weired socialist egalitarianist trade-unionists, but in reality, anyone who doesn't cheat the "system" is considered stupid.
It is true that we hate the idea of anyone being "left out" of prosperity and in that sense, yes, we are socialists, but, by tradition we also oppose all kinds of laziness and inefficiency.
In one way, I'm convinced non-scandinavian nations can't copy the scandinavian lutheran work ethics right off, but on the other hand, I feel different cultures can benefit from studying each other.
For instance, the scandinavian countries have learned a lot from american free market policies and the people of Scandinavia admire the US more than they'd like to admit.
Some more facts about Finland:
In 1991, Finland fell into a deep recession caused by economic overheating, depressed foreign markets and the dismantling of the barter system between Finland and the former Soviet Union. More than 20% of Finnish trade was with the Soviet Union before 1991, and in the following two years the trade practically ceased. 1991 and again in 1992, Finland devalued the markka to promote export competitiveness. This helped stabilize the economy; the recession bottomed out in 1993, with continued growth through 1995. Since then the growth rate has been one of the highest of OECD countries.
The recession caused serious unemployment problem as unemployment soared from 3,2 % in 1990 to 16,6 % in 1994. Unemployment continues to be a problem for Finland even if rapid growth of the production after the recession and active employment policies have reduced unemployment to 8,8 % of labor force in 2004. According to Bank of Finland's statistics, the estimated total rate of unemployment including hidden unemployment accounted to 18% in the fall of 2003.
Exports of goods contribute more than 20% of Finland's GDP; combined exports of goods and services amount to at least 25% of GDP. Exports and imports of goods equal about 40% of GDP. The forest industry and metalworking are Finland's main industries, but other industries produce manufactured goods ranging from electronics to motor vehicles. Finnish-designed consumer products such as textiles, porcelain, and glassware are world-famous. The wood processing technology is one most developed in the world.
Except for timber and several minerals, Finland depends on imported raw materials, energy, and some components for its manufactured products. Farms tend to be small, but sizeable timber stands are harvested for supplementary income in winter. The country's main agricultural products are dairy, meat, and grains. Finland's EU accession has accelerated the process of restructuring and downsizing of this sector, with the farming population decreasing.
An extensive social welfare system, constituting about one-fifth of the national income, includes a variety of pension and assistance programs and a comprehensive health insurance program. Although free education through the university level also is available, only about one child in four receives a higher education in the highly competitive system. In the mid-1970s, the educational system was reformed with the goal of equalizing educational opportunities. Beginning at age seven, all Finnish children are required to attend a comprehensive school (peruskoulu) of nine grade levels (six primary and three secondary). After this, they may elect to continue along an academic (lukio) or vocational (ammattikoulu) line, although it is not mandatory to continue studying after that point. About 60% select the academic line. The number of openings in higher educational institutions is less than the demand. The education is based in Finnish or Swedish language. It is also now possible to study in English from primary up to University.
Finland generally welcomes foreign investment. Areas of particular interest for investors are specialized high-tech companies and investments. The good infrastructure in Finland has enhanced Finland's position as a gateway to Russia.
According to Transparency International, Finland has the lowest level of corruption in all the countries studied in their survey.
Finland is experiencing rapidly increasing integration with Western Europe: Finland was one of the 11 countries joining (Greece joined later) the Economic and Monetary Union of the European Union (EMU) on 1 January 1999. The national currency markka (FIM) in circulation was withdrawn and replaced by euro (EUR) in the beginning of 2002.