Finland to raise defence spending to at least three percent of GDP
Finland will raise national defence spending to at least three percent of GDP by 2029. The aim was proposed by Minister of Defence Antti Häkkänen and endorsed by the Ministerial Committee on Economic Policy on Tuesday.
"By increasing national defence spending to at least three percent of GDP we will strengthen Finland's defence even further. We will launch the modernisation of the Army and the strengthening of other defence capabilities based on a threat-informed basis. By this decision we will answer to the current security situation in Europe and the military threat posed by Russia", said Minister Häkkänen.
The government has also decided to launch materiel projects for the Army in a frontloaded manner.
"The increase in defence expenditure will mean that the Finnish Defence Forces will be granted additional funding in the spring 2025 spending limits decision totalling about 3,7 billion euros over the next four years. The Finnish Defence Forces will also be granted additional procurement authorities in order to frontload the Army's materiel projects planned for the 2030s", Minister Häkkänen said.
According to Minister Häkkänen additional funding will be allocated, for example, to securing critical functions and maintaining defence materiel, which build the capability of the defence system to sustain long-term combat.
"We will bolster structures that support defence, such as personnel numbers, logistics and infrastructure. Resources available for voluntary national defence and research, development and innovation in the defence sector will also be increased. As far as materiel policy is concerned, the Finnish defence industry plays an important role both in maintaining key weapon systems and in developing new capabilities", Minister Häkkänen continued.
This decision of the Ministerial Committee on Economic Policy contributes to the implementation of the policies outlined in the Government Defence Report. Resources for will be increased, and the process for selecting priorities for further boosting Finland's expertise will be accelerated.
The spending limits decision on increasing appropriations and procurement authorities will be made as part of the General Government Fiscal Plan for 2026-2029.
The current base level of Finland's defence budget was decided before Russia launched its campaign in Ukraine in the spring of 2022. In 2000-2020, Finland spent less than 1.5 percent of GDP on defence. The increase to defence appropriations has been prepared in cooperation with the Ministry of Finance.
According to the Government's Defence Report Russia's development of its military capabilities and its political aspirations pose a long-term security threat to Europe and to Finland. Finland must sustain its capability to counter broad-spectrum influencing, resist long-term military pressure and fight large-scale wars that drag on for years, using national resources and as part of NATO.
Finland's position on how much the NATO defence spending target should be increased will be decided on later.
Inquiries: Janne Kuusela, Director General, Ministry of Defence, tel. +358 295 140 300 and Kristiina Olsson, Director of Finance, tel. +358 295 140 220. Interview requests for Minister Häkkänen through Dani Niskanen, Special Adviser, tel. +358 41 544 4967.