Finland Plans to Raise Defense Spending to 5% of GDP by 2032
Finland plans to raise defense spending to 5% of gross domestic product by 2032, in line with evolving NATO policy.
Helsinki Times reported the announcement, citing remarks by Prime Minister Petteri Orpo during a National Coalition Party council meeting.
The government had previously committed to increasing defense spending to 3.5% of GDP, following a proposal by NATO Secretary General Mark Rutte.
The new target goes beyond both NATO’s 2% baseline and Rutte’s proposal, and aligns more closely with U.S. President Donald Trump’s demand that allies raise military spending to 5% of GDP.
“There have been internal discussions about the timing, and we are looking at 2032,” Orpo said in his address. He confirmed that the government had already decided in April to raise defense spending to 3% of GDP by 2029.
Reaching the 3% target would require an additional €10 billion annually by the decade’s end. Increasing the share to 5% would further strain Finland’s long-term fiscal sustainability.
Orpo did not specify how the higher defense budget would be funded but ruled out tax hikes. He said the additional military and social spending would be financed through economic growth.
“I don’t want to start with raising taxes. Our debt has already reached a critical level… I have been criticized recently for being overly optimistic about the economy. I accept this criticism with pleasure. I firmly believe that our decisions are the right ones,” Orpo said.
NATO Pushes for 5% Defense Spending
At a meeting of NATO defense ministers in Brussels on June 5, the Alliance outlined a plan to increase defense spending across member states to 5% of GDP by 2032.
According to the proposal presented by Secretary General Rutte, the 5% target would consist of 3.5% allocated to core defense and 1.5% to associated areas such as cybersecurity and defense infrastructure.
The 5% benchmark reflects a long-standing demand from Donald Trump, who has threatened to withhold U.S. security guarantees from allies that fall short.
Diplomatic efforts are underway to secure consensus ahead of NATO’s upcoming summit in The Hague on June 24. Several member states seek to reassure Washington with specific spending commitments in the hope that Trump will maintain the U.S. defense umbrella over Europe.
However, as Radio Liberty notes, Alliance officials acknowledge that most countries are unlikely to meet the new spending targets quickly, given sluggish economic growth and persistent budget deficits.
NATO has proposed a gradual annual increase of 0.2%, but many member states prefer to spend in larger increments when budget conditions permit.
As a result, defense budgets may rise sharply in years when major procurement contracts, such as for tanks or fighter jets, are signed, particularly as deadlines for meeting the 3.5% threshold approach.
