Prime Minister Petteri Orpo (NCP) acknowledged the challenges — as well as promises — that Finland could face in 2026.
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Image: Roni Rekomaa / Lehtikuva
“The mood leading up to the new year is serious, but not hopeless.”
Those sobering words were among the first of Finnish Prime Minister Petteri Orpo‘s (NCP) New Year’s message, published in the early hours on Wednesday, New Year’s Eve.
Orpo’s message focused on two substantially difficult points — the war in Ukraine and Finland’s economy. But he also noted positives about the economy, like Finland’s icebreaker deal with the United States and the uptick in armoured vehicle manufacturing.
Regarding Finland’s economy, Orpo said his government had taken major steps to address the country’s spiraling public debt.
“Fellow citizens, the situation with Finland’s general government finances is also serious. This is an inescapable fact. We have had to make historically difficult adjustments to general government finances, to the tune of around 10 billion euros. Even this has not been enough; our expenditure is still higher than our revenue,” Orpo’s statement read.
“That said, these adjustment measures have prevented our debt from spiralling out of control,” he continued.
National economy
Due to Finland’s worsening public finances, the European Commission recommended in November that the country be placed under the so-called Excessive Debt Procedure (EDP). The process is meant to ensure that member states comply with the EU’s deficit and debt rules.
Initially, following the procedure means that the government will need to report twice a year about the measures it has taken to improve the economy.
In his New Year’s message, Orpo noted that the national economy will not be fixed within the term of his administration, vowing that his government would continue to do what it can to promote growth and employment.
“We will once again look into what can be done to boost growth and promote employment. If the European Commission’s recommendation is even more saving, that is what we will do. We will do this so that Finland can continue to provide the services of the welfare society to its citizens in the years to come.”
Ukraine funding
Regarding Russia’s ongoing war in Ukraine, Orpo said the chance of achieving peace is unlikely at the moment.
“In recent weeks and days, there have been intense discussions on the conditions for peace in Ukraine. Europe continues to stand with Ukraine so that the outcome of the negotiations is one that Ukraine can accept,” Orpo stated.
“Unfortunately, Russia has shown no signs that it wants to work towards peace. [Russian President] Vladimir Putin‘s threatening rhetoric has only intensified,” he continued.
Orpo lamented that Finland “and most other” EU states would have preferred to use frozen Russian assets to benefit Ukraine. Instead, European leaders decided that the EU would take on 90 billion euros in joint debt to support the war-torn country.
Glimmers of hope
The prime minister wrapped up his New Year’s message by addressing some glimmers of hope, including the icebreaker agreement, as well as a deal between Germany and Finnish military vehicle manufacturer Patria, valued at up to five billion euros.
“The past year brought quite a bit of good news: icebreaker deals with the United States, a long-term contract to build cruise ships, billion-euro orders for Patria, data centre investments and thriving startups. We have every reason to expect more news like this in the coming year,” Orpo stated.
Among other things, the PM said he is pleased about Finns’ increased investments and purchasing power.
“Growth starts when uncertainty subsides and demand picks up for homes, cars, household appliances and services. When people renovate their homes,” he stated.
He also touched on educational investments.
“We have continued to invest in education and expertise, increased the intakes of higher education institutions and boosted funding for research and development.”
In addition to Finnish and Swedish, the government published Orpo’s New Year’s message in English.