Newly in NATO, Finland recommits to EU defence, and to double ammunition production

Having a 1,340-kilometre border with a country that launched a full-scale invasion of another neighbour can sharpen the mind. So, Antti Häkkänen, Finland’s Minister of Defence, was a step of ahead when he said publicly in December 2023 that Russia’s unprovoked war in Ukraine was no “short-term problem”. Weeks later came warnings from NATO’s military committee and Germany that a Russian attack on a NATO country was possible within the next two decades. 

For Finland, which stayed neutral through the Cold War, the situation since February 2022 has been grave enough to forge a national consensus in favour of NATO membership. Helsinki became NATO’s 31st member in April 2024, now covered by NATO’s Article Five mutual-defence clause. “Joining the Alliance was a historic moment for Finland,” Häkkänen says. It is not only a significant shift in Finland’s national security and defence policy, but also more broadly for Euro-Atlantic security, he asserts. “Finland brings to NATO very capable defence forces and a nation with a strong willingness to defend our land and the alliance as a whole.”  

While Russian President Vladimir Putin has sought to portray Finland’s – and Sweden’s – new membership of NATO as a “meaningless step”, it is in fact considered to be one of his biggest miscalculations in launching his full-scale invasion of Ukraine. If any proof were needed, large-scale NATO manoeuvres were held in Finland for the first time in early 2024, called Nordic Response, with 20,000 soldiers from 13 different countries. Nordic Response was a crucial first step in implementing NATO’s regional plans for defending northern Europe. A hostile Russian border is not Finland’s only worry. Possible Russian sabotage of underwater infrastructure in the Baltic Sea, including gas pipelines and communications cables are also a concern. 

The government is committed to spending at least 2% of Finland’s GDP on defence

Finland has not, however, lost sight of its European Union focus.  Häkkänen has been a leading voice in both calling for European countries to increase their defence budgets and to develop their defence industries. “The Finnish government is committed to spending at least two per cent of Finland’s GDP on defence expenditure during its term, in accordance with NATO’s guideline,” he adds.  

Finland has also sent more than 20 military aid packages to Ukraine since the start of the war, the latest with equipment worth €200 million. “It is obvious that we need to do more together to ramp up the defence production in the EU,” he says. “In addition to immediate steps that have been taken, such as investing in new production lines, we need a new level of long-term commitment to defence production, ensuring industrial capacity for decades to come.”   

Money is also needed for innovation and for ammunition. “The EU has an important role to play in enabling the strengthening of Europe’s defence industrial base,” he says, noting that a stronger EU means a stronger NATO. “We also need to have a longer-term plan on how to improve our defence readiness. The current security climate demands it,” Häkkänen says.  

Häkkänen also urges more  European defence collaboration, not just because of Russia’s war of aggression in Ukraine but because of “the uncertain outlook of global security.” He shares the view that there can be no wholesale reliance on the United States. “The EU must play its key part in the building of capabilities for Europe. This requires the immediate strengthening of our industrial capabilities and procurement, as is being done, as well as maintaining and strengthening our cutting-edge technologies for the long term.” For Finland, those should include secure connectivity, quantum computing, and new space capabilities. 

Might Finland one day be forced to fight a contemporary version of its 1939-40 Winter War with the Soviet Union? Beyond taking advantage of its wooded and swampy border with Russia, Finland could once again rely on its army’s mobility, drawing any invader into tough terrain and defending with well-equipped small infantry units, supported by armoured vehicles. “Finland has made significant investments in some key areas which we have decided to prioritise,” Häkkänen said, citing the multinational Common Armoured Vehicle System (CAVS) programme, which aims to develop and field a modern 6x6 vehicle platform. Led by Finland, Germany has now joined Latvia and Sweden in the endeavour. The Finnish Defence Forces have so far ordered some 130 CAVS 6×6 vehicles from Finnish-Norwegian defence company Patria, and deliveries are underway. 

“The most significant challenge lies in our mindset, in our collective ability to prioritise defence as a vital part of securing our democratic societies” 

“Within the programme, we are looking to create a cross-border supply chain of spare parts, production facilities and maintenance know-how for the vehicles,” he says. Once again, Häkkänen points to the benefit for industry from such an approach. “This will strengthen the supply chain and help to keep down the life-cycle costs while strengthening the European defence industrial base.” 

Then, of course, there is artillery ammunition production. Finland, which has one of the largest artillery inventories in Europe, has already increased its domestic artillery ammunition production fivefold compared to levels before the Ukraine war.  “We have decided to make investments that will more than double our current production capacity by 2027,” he said.  

Finland’s ties to the European Defence Agency have been strong from the start. EDA’s first-ever research and technology contract in 2005 was awarded to a consortium led by Patria for a study on remotely piloted air systems and technologies, known as RPAS. Finland is part of one of EDA’s longest-running projects, MARSUR, that gives EU navies a clearer overview of activity on the seas. Finland was also part of EDA’s long-running helicopter training programme, which the Agency handed over to Portugal at the end of 2023.  

It has also benefited from the EU Satellite Communications (SatCom) market, set up by EDA, not to mention taking part in EDA’s live-fire cyber exercises to improve European cooperation between Member States’ national, military Computer Emergency Response Teams (CERTs). Patria is also part of EDA’s biggest research and technology project to date, to develop highly autonomous combat unmanned ground systems - the Combat Unmanned Ground Systems (CUGS) project. 

“EDA’s work on enablers, such as military airworthiness, has been of direct benefit to our national work in the area,” Häkkänen said. EDA’s work in identifying areas for capability development are also welcome. “It is in this architecture of arranging European cooperation that EDA has had a key role and I wish to see this role further increase,” he adds. “EDA, with its ability to aggregate Member States’ requirements and to offer cooperative solutions based on a European overview, is a key asset.” 

A fundamental question still needs to be addressed, however. Are Europeans willing to support a genuine European Defence and Technological Industrial Base (EDTIB), with high force readiness and sustained investment? “I believe the most significant challenge lies in our mindset, in our collective ability to prioritise defence as a vital part of securing our democratic societies,” Häkkänen says. “It is now our key task to prepare wise investments and ensure our ability to maintain a new level of defence readiness in Europe, in a deepened cooperative approach with NATO. With this innovation and commitment that we have begun to build in Europe, I believe we will be stronger and more effective in our defence, together.” 

Häkkänen’s key tasks for EU defence: 

• Wise investments to bolster defence capabilities 
• Enhanced defence readiness and preparedness across Europe 
• Deepening cooperation with NATO initiatives 
• Integrating new technological innovators to bring cutting-edge solutions to defence 
• Exploring and using new sources of financing to support EU initiatives