Finland secures ReArm Europe funding for defence sector
- Finland has revealed that it has secured ReArm Europe funding that will boost defence sector capabilities
- The focus appears to be on dual-use technologies and bolstering supply chain security
- Meanwhile, Helsinki also announced that Finland will host a new Nato C2 capability to aid in High North security
Finland has secured unspecified funding as part of the European Union’s (EU) ReArm Europe programme intended to rejuvenate defence spending across the bloc, with Helsinki stating the finances would boost military capability.
Announced on 12 February, the Finland Government announced €280m ($332m) in funding from the European Regional Development Fund and other agencies under the EU’s regional and structural policy programme.
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Within the ‘Innovation and Skills in Finland’ segment, the EU’s ReArm Europe Plan will open up two “completely new policy lines” to support investments in the country’s defence industry and production of dual-use items.
A 12 February Finnish Government release said the move would “bolster Finland’s defence capability” and aid supply chain security.
“With the help of the EU’s new policy lines on regional development funding, we will be able to strengthen security of supply, improve military mobility, and enhance the production capacity within Finland’s defence industry and dual-use items,” said Minister of Economic Affairs Sakari Puisto.
“As a result, we can more easily attract investments to the regions and create new jobs,” Puisto added.
In 2025 the European Commission unveiled the ReArm Europe Plan, which encompasses a budget of €800bn ($867.74bn) aimed at bolstering defence spending across the continent.
One of the early, but key, initial aspects of the ReArm Europe initiative involves expediting the availability of funds for defence purposes, releasing billions of euros for military procurement needs.
However, the funds are not necessarily distributed by the EU, rather it enables such national spending to be activated without it counting against wider fiscal deficit targets imposed on member states.
Of the €800bn in ReArm funding, around €150bn is provided by targeted EU loans with the rest comprised of expected increases national defence spending.
Finland to host Nato C2 centre
Meanwhile, on 12 February Finland announced that it had received approval from Nato to host a deployable command and control (C2) module in the High North in a bid to strengthen Arctic security.
The Deployable CIS Module (DCM) will provide C2 services in support of Nato forces and commands in Finland, potentially extending across the Alliance if necessary.
“A Deployable CIS Module will strengthen Nato’s deterrence and defence throughout the High North,” said Finland’s Minister of Defence Antti Häkkänen.
In 2023 Finland opted to join Nato as a result of regional security threats caused by Russia’s invasion of Ukraine, adding some 1,300km of border frontier to the opposed blocs.
According to intelligence firm GlobalData, Finland’s defence expenditure was forecast to reach $7.1bn by the end of 2025, representing an 8.4% increase over 2024 levels.
