The European Commission recommends that the Council of the EU activate the national escape clause for Finland. The recommendation is based on increasing defence spending. The Commission does not recommend opening an excessive deficit procedure.
The OECD sees vast potential for clean economic growth in Finland. However, structural reforms will be required to realise this potential. Among other things, the OECD recommends that Finland boost higher education, attract high-skilled immigrants and improve incentives for investments. Further adjustments to public finances are necessary due to rising defence spending.
The Finnish economy is expected to grow, but the trade war may substantially slow down growth. In its forecast published on 30 April, the Ministry of Finance warns that general government finances remain weak, and that Finland has few buffers to reduce the impacts of a trade war.
The General Government Fiscal Plan guides the planning public finances. It covers central government, wellbeing services counties, municipalities, statutory earnings-related pension funds and other social security funds.
Finland is requesting that the EU activate the national escape clause in the EU’s fiscal policy rules in order to increase defence spending. The majority of EU Member States are likely to request activation of the escape clause.
Publications
State Budget 2025
The central government's appropriations in the budget proposal total EUR 88.8 billion. Revenue is estimated at EUR 76.6 billion. The budget proposal shows a deficit of EUR 12.1 billion.
The Ministry is tasked with establishing, overseeing and reforming the operating framework for public finances and public governance. Our vision is to establish a solid foundation for the economic prosperity and wellbeing of coming generations.
