Headlines
Finland says no to more joint EU debt
Published by Global Banking & Finance Review®
Posted on September 19, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on September 19, 2025
1 min readLast updated: January 21, 2026
Finland opposes the EU's proposal for more joint debt, affecting the 2028-2034 budget. Other countries like Germany and Sweden also disapprove.
COPENHAGEN (Reuters) - Finland is opposed to a European Commission proposal that the European Union be able to take on more joint debt, Finance Minister Riikka Purra said on Friday.
The European Commission has proposed that the budget for 2028-2034 include an option to jointly borrow money in the case of an emergency.
"We are not just critical but opposed," Purra said on social media platform X. "Finland is thus ready to sink those proposals even single-handedly."
Some members of the 27-country bloc have argued that joint debt could help fund spending that the Commission is proposing at lower borrowing costs.
Meanwhile, Germany, the Netherlands and Sweden have said they oppose the idea, and Denmark has said it is sceptical.
An agreement on the new EU budget requires backing from all 27 member countries and sign-off by the European Parliament.
(Reporting by Louise Rasmussen, editing by Anna Ringstrom)
Joint EU debt refers to the financial obligation that member states of the European Union share, allowing the EU to borrow money collectively to fund projects or respond to emergencies.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
The EU budget is the financial plan that outlines the expected revenues and expenditures of the European Union for a specific period, typically covering seven years.
Financial stability refers to a condition where the financial system operates effectively, allowing for smooth functioning of financial markets and institutions without significant disruptions.
Debt sustainability is the ability of a borrower, such as a country or organization, to manage its debt without requiring debt relief or accumulating excessive debt over time.
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