Finland, the United Kingdom, and the Netherlands are exploring the possibility of establishing a new defence financing mechanism by 2027. The aim is to coordinate demand to accelerate investments and increase the availability of ammunition and other critical materiel.
– For Finland, it is important to participate in the exploration of the mechanism's possibilities together with our allies. Participation from the outset gives us the chance to influence what such a solution could look like, says Finland's Minister of Defence Antti Häkkänen according to a joint press release published by the British government.
According to the Finnish Ministry of Defence, discussions are being held with a core group of countries within NATO. The work has been initiated due to a deteriorating global security situation and Russia's war of aggression against Ukraine. The mechanism is intended to complement existing initiatives within NATO and the European Union.
The British government states that the framework is expected to be in place by 2027 at the latest. In addition to strengthening the production capacity of the European defence industry, the intention is for the collaboration to lead to more efficient resource use for the participating countries through joint procurement.
UK Chancellor of the Exchequer Rachel Reeves emphasises in the British release that deepening cooperation with allies is in the nation's long-term interest to ensure economic stability, while also providing taxpayers with value for money.
According to the communiqué, the initiative is also open to other like-minded partners outside the current constellation.
– By coming together, we gain more security with the same resources, and we also strengthen our alliances, says the Netherlands' Minister of Finance Eelco Heinen in the British press release.