Politis

ECOFIN Opens Excessive Deficit Procedure for Finland

Published January 20, 2026, 12:34
ECOFIN Opens Excessive Deficit Procedure for Finland

The ECOFIN Council decided today to launch an excessive deficit procedure for Finland, as the state deficit exceeded the 3% of GDP limit stipulated by the Stability and Growth Pact. Finland's deficit reached 4.4% of GDP in 2024 and is expected to remain at 4.3% in 2025. Despite the use of the national derogation clause for defense spending, the deficit remains excessive. The Council is requesting Finland to take effective measures and submit plans to correct the deficit by 2028, with specific targets for the rate of increase in public spending in the coming years. The excessive deficit procedure aims to strengthen the sustainability of the public finances of member states.