Budget context
Finland's 2025 defense budget is approximately €6.5 billion, with the F-35 procurement consuming the largest single share of capital spending at roughly €1.5B per year through 2028, declining to €400M annually in the final 2029-2030 delivery years. Base defense spending (excluding F-35 installments) runs near 2% of GDP; the aircraft program pushes the total to 2.8%. Finland has announced a trajectory to 3% by 2029, with the Bank of Finland modeling that sustained spending at 3.5%+ may create moderate capacity pressures on the construction and engineering sectors. Personnel costs are modest relative to Western peers due to the conscript-based model.
Force structure
Finland maintains about 23,000 professional cadre soldiers and trains approximately 20,000-25,000 conscripts per year through a universal-service system. The wartime-ready reserve is 280,000 strong, backed by a broader conscript pool of approximately 900,000 citizens — extraordinary for a country of 5.5 million. The Army operates Leopard 2A6 tanks, K9 Thunder self-propelled howitzers, and CV9030 infantry fighting vehicles. The Air Force currently flies 64 F/A-18C/D Hornets (aging), with 64 F-35As on order (deliveries 2025-2030). In December 2025, Finland raised the reservist age to 65, expanding the mobilizable pool further. Finland's wartime army of 280,000 is the largest mobilization-to-population ratio in the EU.
Industrial posture
Patria Oy (state-majority-owned) is Finland's primary defense manufacturer, producing the AMV 8×8 armored vehicle family widely exported to NATO members (Poland, Slovenia, Croatia), the NEMO mortar system, and providing military aviation maintenance. Finnish defense exports have grown substantially since 2022, with AMV contracts with Poland the largest single program. The F-35 purchase includes Finnish-industry offset agreements (approximately 30% industrial participation target), notably Patria involvement in F-35 subcomponent production and MRO. Saab AB (Sweden) partners with Patria on communications and electronic warfare systems.
Conflict exposure
Finland shares a 1,340 km border with Russia — the longest NATO-Russia land border after Norway. This exposure drove Finland's historic NATO bid, approved by parliament in 2022 and ratified April 4, 2023, after Turkey and Hungary dropped objections. Russian forces opposite the Finnish border are assessed to be stretched by Ukraine operations, reducing near-term risk, but Finnish military planning is oriented toward full-spectrum territorial defense against a peer adversary. Finland participates in NATO's Eastern Flank reinforcement, contributes to air policing, and conducts exercises under the Steadfast Defender framework. No active conflicts as of 2026.
Recent developments
Finland's first F-35A deliveries began in 2025, with approximately 6-8 aircraft accepted by the Finnish Air Force from the 64-jet contract. In December 2025, Finland announced it would raise the maximum reservist age to 65, expanding the mobilizable pool. Finland pledged in April 2025 to raise defense spending to 3% of GDP by 2029. SIPRI confirmed Finnish 2025 spending at $8.1B (2.8% of GDP) in its April 27, 2026 release — among the highest in the EU as a share of GDP. Finland hosted the Nordic-Baltic 8 defense ministerial in February 2026, where acceleration of air-defense and drone-defense cooperation was agreed.