The Finnish government will increase defense spending to 3.2% of GDP by 2030, after deciding to cut other expenses.

The Finnish government has announced that it will significantly increase defense spending to 3.2% of Gross Domestic Product by 2030, as part of the budget for the next four years. This decision comes in the context of Russia's invasion of Ukraine, which prompted Finland to join NATO in 2023.

Defense spending will reach 2.5% of GDP by 2025, and the increase to 3.2% would bring Finland closer to NATO's target of 3.5% by 2035. Prime Minister Petteri Orpo mentioned that the additional funds will be directed towards military recruitment, training for reservists, and drone defense.

The right-wing coalition has announced cuts in spending in the field of healthcare and social services, in an attempt to reduce public debt, estimated at 90% of GDP by 2026. Finland is facing a budget deficit of 4.4% of GDP in 2024, which has prompted the EU to initiate a disciplinary procedure for excessive deficit. Austerity measures have led to a decrease in support for the government, according to a recent survey.