US EditionFinland escapes EU deficit sanctions after defence exemption
5 Articles
5 Articles
Finland is now the only eurozone country that does not face any sanctions for violating both EU debt rules at the same time.
Finland's budget deficit last year was far above the European Union's agreed-upon three percent level of gross domestic product, but the country escaped the excessive deficit procedure by using an exemption that allows it to take into account a sharp increase in defense spending.
Finland escapes EU deficit sanctions after defence exemption
Finland has avoided being placed under the European Union’s excessive deficit procedure (EDP), despite breaching key public finance rules. The European Commission accepted a defence spending exemption that lowered the country’s calculated deficit, allowing the Orpo government to sidestep a politically sensitive designation. The EDP, known in Finland as the “observation class,” applies to member states whose annual budget deficit exceeds 3 percen…
The Commission granted Finland an exemption related to the increase in defense spending and turned a blind eye to last year's rapid borrowing.
An EU member state may request the activation of a national escape clause based on exceptional circumstances.
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