As the United States grapples with the turbulence following the rise of a new administration, the European Union's role in supporting Ukraine is becoming increasingly significant. For this reason, the Finnish government is shifting its stance on EU joint debt, becoming more favorable toward it—provided it is used specifically for aiding Ukraine and strengthening collective defense.
As a sign of this shift, Prime Minister Petteri Orpo (National Coalition Party) reiterated this position on Monday upon arriving at an informal EU defense meeting in Brussels. According to him, the guiding principle of joint debt should be that investments in defense must be based on necessity and threat assessments.
To clarify his stance, he stated that “those funds should be used where Europe is being defended. In that case, Finland must clearly be among the beneficiaries.”
Additionally, Finland, along with nearly all EU member states, proposed that the European Investment Bank (EIB) should increase its financing for the European defense industry. In practice, this would mean reassessing the EIB's so-called "excluded sectors" list to align with the EU's current political priorities. This adjustment would allow the EIB to finance traditional defense industries in the future.
One point of contention has also been where defense procurements should be made. As always, France—keen to favor its domestic industry—wants EU defense acquisitions funded by joint resources to be sourced from European markets.
However, Finland’s prime minister noted that Europe’s defense needs are so vast that there will be enough demand to support both France’s and Finland’s defense industries. Furthermore, he emphasized that it would neither be reasonable nor even possible for the EU to detach itself from the United States, given that American defense systems are highly advanced and will continue to be necessary.
It remains to be seen whether Orpo’s well-argued positions will gain traction within the Union. At present, Hungary and Austria oppose them, and many other countries—such as France—are waiting for more details before taking a final stance.
That said, Europe does not have the luxury of time. Decisions must be made immediately regarding Ukraine and, as soon as possible, to enhance the EU’s overall defense readiness. At the same time, efforts must be made to prevent the trade war threatened by Donald Trump from disrupting transatlantic economic and technological cooperation—or, more critically, NATO’s ability to operate effectively wherever necessary.
Previous thoughts on the same topic:
Finland and the USA: Strong Allies with Shared Interests or a Trade Dispute?
Finnish Minister Riikka Purra: “Putin Is a War Criminal, an Aggressive Imperialist”
From Finland to Olaf Scholz: The Imperative of Supporting Ukraine's Independence instead of its Finlandization
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