Finland Shifts Stance on EU Joint Debt Amid Growing Defense and Ukraine Support Needs

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

Finnish Minister Riikka Purra: “Putin Is a War Criminal, an Aggressive Imperialist”

In Finland, there is an almost brutally realistic Minister of Finance, Riikka Purra (Finns Party), who has taken on the task of cutting state expenditures to align with revenues. She has faced opposition, particularly from the left side of the political spectrum, and the press has heavily targeted her and her party. However, this has not led to any shift in the government’s political direction.

In a recent interview, Minister Purra also characterized Russia and Putin’s regime. True to her straightforward style, she did so in no uncertain terms.

According to her, “It’s probably quite clear what everyone thinks about Putin. He is a war criminal, an aggressive imperialist.”

She described the recent events of the war in Ukraine by saying, “Even the most recent images and videos of Russia’s massive attacks, not only on cities but also on energy facilities, are utterly horrifying. Of course, we hope that peace can be achieved as soon as possible, but in this case, it’s not that simple because peace must also be acceptable.”

She also stated that “especially in this situation, stronger preparedness and investment in defense are essential.” And therefore, “since there is no money lying around unused anywhere, there are essentially two options: take on more debt or prioritize — that is, elevate defense and security above some other area of policy. I support this prioritization.”

It is to be hoped that, by the end of this government’s term, Riikka Purra and the rest of the Finnish government will receive gratitude from the public for their steadfast actions. And that after the 2027 elections, they will be able to form a new government that takes care of both the country’s security and — as the national economy stabilizes thanks to the current government’s efforts — leads Finland into sustainable economic growth for the first time since 2008.

Previous thoughts on the same topic:
Finland’s Minister of Finance Believes Not All Cultures Are Equally Good
Will Orpo's Government Restore Finland to Sustainable Economic Growth?
Balancing the Books

Important Changes Ahead: What You Need to Know About Finland’s Quota Refugee Selection

Yesterday, I blogged about how Finland plans to enhance the use of its development aid funds. Additionally, two weeks ago, I wrote that even in the long term, Finns do not benefit from humanitarian immigration from developing countries.

Today, Finland's largest newspaper reported that the second main party in Finland's government, the Finns Party, plans to reduce the proportion of Muslims among the quota refugees. This would mean, for example, that Venezuelans would be prioritized over Afghans when selecting newcomers.

In practice, Finland will take 500 quota refugees next year. This happens in such a way that the UN Refugee Agency (UNHCR) presents a group of individuals, from which Finnish authorities ultimately select the quota refugees for Finland, based on the government's defined regional allocation.

The decision-making process in Finland proceeds as follows: under the leadership of the responsible minister from the Finns Party, a draft proposal is prepared and will be discussed by the government's Ministerial Committee on Internal Security and Justice at the end of October. Finally, the parliament will decide on the refugee quota based on the government's proposal toward the very end of the year.

One can hope that the Finns Party's proposal goes through, and that fewer individuals with a poor assimilation outlook will arrive in Finland this year. As a result, the societal burden related to quota refugees will hopefully decrease – or even turn into a positive outcome. 

Previous thoughts on the same topic:
Responsible Development Aid and New Priorities: Finland's Development Cooperation Reforms
The attractiveness of Finland to welfare-seeking economic migrants reduces
Humanitarian immigration does not provide a solution to Finland's demographic dependency ratio