Germany EU Commission to launch excessive deficit procedure against Finland
The European Commission wants to initiate criminal proceedings against Finland for excessive new debt. The country has an excessive deficit, according to the Brussels authority responsible for compliance with EU debt rules.
25.11.2025, 17:40
SDA
The aim of so-called excessive deficit procedures is to bring countries to sound budgetary management.
Last year, the state deficit of the northern European country amounted to more than 3.0 percent of economic output and was therefore above the EU upper limit. According to the Commission, Helsinki's deficit is expected to rise to 4.5 percent by 2025, before falling slightly to 4.0 percent in 2026 and 3.9 percent in 2027.
The new debt can only partly be explained by the increase in defense spending, according to the Brussels authority. If debts are caused by higher defense spending, there is an exemption rule.
Exception protects Germany from excessive deficit procedure
This exception protects Germany from the Brussels authority initiating proceedings against the Federal Republic. Although the German government is planning new debts in the billions, the increase in defense spending "fully" explains why the three percent limit has been exceeded, according to the Commission. Deficit proceedings are currently underway against many other EU countries.
The procedure against Finland still has to be approved by the EU finance ministers. The main aim of the procedure is to ensure the stability of the eurozone. In theory, penalties in the billions are possible in the event of persistent breaches. In practice, however, these have never been imposed.
Finland expected proceedings
The EU Commission's announcement in Helsinki did not come as a great surprise. The right-wing populist Finance Minister Riikka Purra had already warned last week that Finland would probably face such proceedings. The move was to be expected, explained conservative Prime Minister Petteri Orpo on Platform X.
Even an adjustment of the deficit by ten billion euros would not remedy the damage to the Finnish economy caused mainly by Russia's war of aggression against Ukraine, he wrote. The measures taken by his government were correct and must be continued. A lasting economic recovery will take at least two years.
