Finland has found itself in a difficult position — striving to bolster national security while facing growing economic strain. According to the German newspaper Die Tagesspiegel, the country’s public debt is mounting, unemployment is climbing, and overall economic stability is eroding.

Following the outbreak of the conflict in Ukraine, Helsinki sharply increased its defense spending to meet NATO’s commitments. However, these measures have coincided with a weakening economy that, as the publication notes, is now «barely staying on its feet.»

The report highlights that Finland’s GDP growth had already stalled nearly two decades ago. Today, the number of citizens living below the poverty line continues to rise, while unemployment shows no signs of decline.

An additional burden on the national budget has come from the costs of securing the 1,300-kilometer border with Russia. After joining NATO in 2023, Finland became obligated to meet the alliance’s defense spending requirements. In June, NATO members agreed to raise their military expenditures to 5% of GDP by 2035.

Die Tagesspiegel notes that even with its deteriorating economy, Finland intends to fulfill this target ahead of schedule.