Finland participating in discussions on new financing mechanism for defence

Finland and a group of other NATO countries are exploring the establishment of a new financing mechanism.

The new mechanism would:

• accelerate defence investments;
• increase the availability of critical capabilities; and
• drive joint procurement through multinational financing arrangements.

Finland is involved in discussions with core allies to lay the groundwork for the financing mechanism. Commitment to the mechanism will require political decisions on the national level. Finland is participating in these discussions with the United Kingdom, the Netherlands and other partners.

New mechanism to complement existing cooperation

The new financing mechanism would complement NATO and EU initiatives and support cooperation with other partners and international institutions. The mechanism would use joint financing arrangements to strengthen collective deterrence, expand European defence industrial capacity and increase the defence capability of participating countries through joint procurement. 

Work to set up this new mechanism was prompted by major shifts in the security environment. In particular, Russia’s war of aggression against Ukraine has increased the threat of war in Europe and has disrupted the rules-based international order globally.

Inquiries:

Marketta Henriksson, Director, Head of the Secretariat for EU and International Affairs, Ministry of Finance, tel. +358 295 530 441, marketta.henriksson(at)gov.fi

Lotta Sjöblom, Senior Specialist, Ministry of Defence, tel. +358 295 140 035, lotta.sjoblom(at)gov.fi

Requests for interviews with the Minister of Defence: Antti Vesala, Special Adviser, tel. +358 50 471 0883, antti.vesala(at)gov.fi