“By increasing national defence spending to at least three percent of GDP we will strengthen Finland’s defence even further,” said Minister Häkkänen. “We will launch the modernisation of the Army and the strengthening of other defence capabilities based on a threat-informed basis.”
The decision comes amid growing concerns over Russia’s military ambitions and follows a broader reassessment of Finland’s defence posture since joining NATO. Materiel projects for the Army will be brought forward, with additional funding planned in the upcoming 2025 spending limits decision.
“The increase in defence expenditure will mean that the Finnish Defence Forces will be granted additional funding… totalling about €3.7 billion over the next four years,” Häkkänen confirmed. “The Finnish Defence Forces will also be granted additional procurement authorities in order to frontload the Army’s materiel projects planned for the 2030s.”
Funding will also go toward securing critical infrastructure, maintaining existing defence equipment, and reinforcing Finland’s long-term operational readiness. “We will bolster structures that support defence, such as personnel numbers, logistics and infrastructure,” added Häkkänen.
Support for voluntary national defence, innovation, and research in the defence sector will also be expanded as part of the initiative. The Finnish defence industry is expected to play a central role in maintaining and developing weapon systems under the new funding model.
The move aligns with the Government Defence Report, which highlights the need for Finland to counter long-term threats from Russia and prepare for protracted military conflict. The Ministry of Finance has supported the preparation of the increased defence budget, which will be formally included in the General Government Fiscal Plan for 2026–2029.
Source: Ministry of Defence of Finland.
