Finland Plans Defence Tax To Net 500M Euros A year

The Finnish government is mulling a ‘defence tax’ to net 500 million Euros a year for funding the purchase of four warships and fighter jets worth an approximate 10 billion Euros.

The political leaders in Norway had a closed-door meeting in late December to discuss plans for financing new naval vessels and a fleet of new fighter aircraft that could include a special, temporary defense tax, Finnish Broadcasting News reported today.

Prime Minister Juha Sipilä had held a meeting just a few days before Christmas together with the heads of all eight of nation's political parties, including the opposition, to discuss upcoming defense spending.

The Finnish Navy has been making initial preparations to acquire four new warships with a price tag of 1.2 billion euros. The base cost estimate for replacing Finland's aging F-18 fighters is between 7 and 10 billion, Helsingin Sanomat reported.

A decision in principle on these purchases is expected soon. A final decision will be up to the next cabinet, but the present government is likely to make decisions on financing these projects as a part of this spring's public spending plan.