The EU has opened a procedure to eliminate Finland's excessive budget deficit

The Council of the European Union (EU) has opened an excessive budget deficit procedure in relation to Finland. This was reported on the council's website on January 20.

"The Council has opened an excessive deficit procedure in relation to Finland. This decision was made in view of Finland's budget deficit of 4.4% in 2024 and a planned deficit of 4.3% in 2025," the statement said.

The EU Council's recommendation states that Finland should take effective measures and present the necessary steps to reduce the deficit by April 30, 2026. The country must also ensure that the nominal cumulative growth rate of net spending does not exceed 2.5% in 2026, 4.1% in 2027 and 5.9% in 2028.

The excessive deficit procedure is a mechanism designed to ensure that public debt is reduced to a sustainable level if it exceeds the limits set in EU treaties of 3% of GDP for deficits and 60% for debt.

Suffer with a fence: Finland wants to permanently leave a fence along the border with the Russian Federation

They do not plan to demolish it even after the settlement in Ukraine, although the republic is experiencing a crisis due to the severance of ties with Moscow.

The European Commission (EC) launched an investigation in November last year and proposed disciplinary measures against Finland due to excessive public debt. In Brussels, it was emphasized that Finland plans to reduce the deficit to 4% of gross domestic product (GDP) by 2026, but the figures will still exceed the EU standards.

Earlier, on November 3, it was reported that the Finnish economy could be under threat due to growing defense commitments to the North Atlantic Alliance. It was noted that the country is gradually moving from prolonged stagnation to economic recession.

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