Helsinki, Nov 26 (IANS) The European Commission is considering proposing in December the launch of an excessive deficit procedure (EDP) for Finland after determining the country no longer meets the European Union’s (EU) deficit rules, Finland’s Ministry of Finance said.
EU rules require member states to keep their general government deficit below 3 per cent of gross domestic product (GDP). Finland exceeded this limit last year and is expected to remain above it in the coming years, according to the Commission’s latest assessment, the ministry said.
“The Commission’s assessment did not come as a surprise, as Finland’s public finances have continued to deteriorate,” Finance Minister Riikka Purra said. “We will find out in December how quickly the EU expects us to correct the situation. The corrective measures will be up to us.”
Finland has a national “escape clause” for 2025-2028 due to rising defence spending, but the ministry said this no longer justifies this year’s excess deficit, meaning the Commission’s earlier conclusions no longer apply, Xinhua news agency reported.
The EDP, established in EU treaties, requires member states to reduce excessive deficits and can ultimately lead to sanctions for eurozone members that fail to act. Nine EU countries are currently under the procedure, and Finland would become the 10th if it is opened.
In December, the Commission is expected to propose a Council decision confirming Finland’s excessive deficit and to issue recommendations, including a “corrective net expenditure path” and a deadline for bringing the deficit back below 3 per cent of GDP.
EU finance ministers, meeting in the Economic and Financial Affairs Council in January 2026, are scheduled to decide whether to formally open the procedure and adopt country-specific recommendations. Finland would then have three months to submit its first report on corrective measures.
–IANS
int/rs
