Finland: economic self-destruction

Finland seems doing it all wrong.

Finland closed the border to Russia, trade collapsed by 90%, EUR 12 billion bilateral trade destroyed.

Finland cut off the energy, oil and gas from Russia. The cut-off jacked up Finland’s oil import costs by 109% to over €6 billion in 2022 alone – Finland is in an energy crisis.

DW writes further that the EU Commission ordered Helsinki to devise a credible plan to resolve the country’s budget deficit, which has crossed the EU’s limit of 3% of gross domestic product (GDP). The Commission said Finland’s deficit was projected to reach 4.5% of GDP in 2025, while the country’s debt burden was set to hit 90% of GDP next year, up by nearly half since 2019. The Nordic nation, whose annual economy is worth €300 billion ($349 billion), has now been formally placed under the EU’s Excessive Deficit Procedure. This could lead to financial sanctions, including large fines, suspension of EU funds and stricter fiscal oversight by Brussels”.

And Finland became NATO member during the Ukraine conflict. This is not only a risky act, but also a very expensive one for the deficit plagued country.

The new NATO member Finland has pledged to increase military spending toward 3% by 2029, which would make it one of the highest spenders in Europe, while Finland is a very active agent for V Selensky in the current development in Ukraine.