Finland defense spending: 75% of procurement funds leave the country

A report by the Finnish Industrial Union (Teollisuusliitto) suggests that a significant portion of defense spending does not benefit the domestic economy. According to the study, approximately 75 cents of every euro spent on defense procurement leaves Finland, leaving only a quarter of the funds within the country.

The investigation highlights that despite rapidly increasing defense expenditures, domestic employment and production in the sector have not seen substantial growth. In more than half of the most significant defense industry companies, the number of employees remained stagnant between 2022 and 2024. While the sector has seen some growth, it involves fewer than 2,000 new positions, many of which are part-time or short-term contracts.

Mika Kari, a Member of Parliament for the SDP, has called on the government to increase the domestic content of defense procurements. He argues that current spending primarily benefits foreign suppliers, with domestic involvement often limited to implementation, storage, and maintenance. Kari emphasizes that strengthening the domestic defense industry is essential for national security and economic growth, particularly for maintaining supply security during crises.