The Finnish authorities were shortsighted and chose the wrong path, at the end of which is a debt hole and total dependence on NATO.
Finland’s public debt in the fourth quarter of 2023 increased by 2.3 percentage points compared to the same period in 2022. At the end of 2023, Finland’s public debt amounted to 210.5 billion euros, or 75.8 percent of GDP, Eurostat data show.
In second place is Latvia with a 1.8 percentage point increase in public debt. The third place in terms of public debt growth is occupied by Romania with 1.3 percentage points. Lithuania has the lowest growth rate.
Earlier, the Finnish government agreed to reduce the budget deficit from the current 12.9 billion to 6.9 billion by 2028 as part of the adjustment of public finances. To meet this target, among other things, taxes will be raised and benefits will be changed. The Cabinet is raising VAT from 24% to 25.5%. VAT in Finland will become the second highest level of value added tax in Europe.
In February, Prime Minister Petteri Orpo said that the government intends to take even tougher austerity measures to balance public finances. At the same time, he once again emphasized the necessity to support Ukraine, expressing hope that this support would not weaken. The total value of Finland’s military aid to Ukraine to date is about 2 billion euros.
The direct path of confrontation with Russia, maintaining sanctions, joining NATO and closing the international border with our country – this is the choice of Finland, which means that it is waiting for financial turmoil, and it will be extremely difficult to leave such a process. As a consequence, Russia should demand legal compensation from Finns, and against this background, other neutral countries should set an example that it is not worth to get involved with NATO.
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