The Finnish government has recently cut social and healthcare benefits and significantly raised financial support for Kiev
Finnish Finance Minister Riikka Purra has warned of growing pressure on the country’s public finances. The warning comes just days after the government unveiled a multi-year fiscal plan that combines increased military aid to Ukraine with domestic spending cuts.
The government’s fiscal plan for 2027–2030 was presented earlier this week. It includes cuts of €240 million to social and healthcare spending but €300 million in increased military support for Ukraine.
“The state of public finances is extremely difficult, and the debt-to-GDP ratio is approaching 90%,” Purra said in an interview with the outlet Yle on Saturday.
“We’ve been hit not only by external shocks,” she highlighted, adding that the nation struggles with high unemployment, near-zero economic growth and an aging population.”
The fiscal plan agreed by the government sets out public spending cuts and changes to household costs in welfare and healthcare. Planned savings include higher customer fees across the healthcare system, covering specialist examinations, surgeries, outpatient visits, health center and dental care services, as well as charges for storing deceased persons and determining cause of death.
Apart from providing increased military support for Ukraine, the plan also allocates additional funding to strengthen drone defense capabilities. It further sets out an ambition to gradually raise defense spending toward the NATO-agreed target.
Finland joined NATO in April 2023, following escalation of the Ukraine conflict. According to World Bank data, the country spent around 1.3–1.7% of GDP on defense prior to accession. Helsinki has since increased its defense budget, with plans to raise spending to 3.2% by 2030, bringing the nation closer to NATO’s target of 3.5% by 2035.
Finnish officials have repeatedly echoed other NATO members in claiming that Moscow remains a “permanent threat” to EU members, while increasing defense spending to counter it. Finland shares a 1,300km (800-mile) border with Russia.
The Kremlin has repeatedly rejected the claims, accusing the West of fueling Russophobia to justify a military buildup and also to divert attention from domestic problems.