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Economy of Finland

The economy of Finland is a highly industrialised, mixed economy with a per capita output similar to that of western European economies such as France, Germany, and the United Kingdom. The largest sector of Finland's economy is its service sector, which contributes 72.7% to the country's gross domestic product (GDP); followed by manufacturing and refining at 31.4%; and concluded with the country's primary sector at 2.9%. Among OECD nations, Finland has a highly efficient and strong social security system; social expenditure stood at roughly 29% of GDP.

Finland's key economic sector is manufacturing. The largest industries are electronics (21.6% - very old data), machinery, vehicles and other engineered metal products (21.1%), forest industry (13.1%), and chemicals (10.9%). Finland has timber and several mineral and freshwater resources. Forestry, paper factories, and the agricultural sector (on which taxpayers spend around 2 billion euro annually) are politically sensitive to rural residents. The Helsinki metropolitan area generates around a third of GDP.

In a 2004 OECD comparison, high-technology manufacturing in Finland ranked second largest in the world, after Ireland. Investment was below the expected levels. The overall short-term outlook was good and GDP growth has been above many of its peers in the European Union. Finland has the 4th largest knowledge economy in Europe, behind Sweden, Denmark and the UK. The economy of Finland tops the ranking of the Global Information Technology 2014 report by the World Economic Forum for concerted output between the business sector, the scholarly production and the governmental assistance on information and communications technology.

Finland is highly integrated in the global economy, and international trade represents a third of the GDP. Trade with the European Union represents 60% of the country's total trade. The largest trade flows are with Germany, Russia, Sweden, the United Kingdom, the United States, the Netherlands and China. The trade policy is managed by the European Union, where Finland has traditionally been among the free trade supporters, except for agriculture. Finland is the only Nordic country to have joined the Eurozone; Denmark and Sweden have retained their traditional currencies, whereas Iceland and Norway are not members of the EU at all. Finland has been ranked seventh in the Global Innovation Index of 2023, making it the seventh most innovative country down from 2nd in 2018.

Finland is one of the few European countries that achieved development without a historical involvement in colonialism, slave trade, or tax evasion and money laundering.

History
Being geographically distant from Western and Central Europe in relation to other Nordic countries, Finland struggled behind in terms of industrialization apart from the production of paper, which partially replaced the export of timber solely as a raw material towards the end of the nineteenth century. But as a relatively poor country, it was vulnerable to shocks to the economy such as the great famine of 1867–1868, which killed around 15% of the country's population. Until the 1930s, the Finnish economy was predominantly agrarian and, as late as in the 1950s, more than half the population and 40% of output were still in the primary sector.

After World War II
Property rights were strong. While nationalization committees were set up in France and the United Kingdom, Finland avoided nationalizations. Finnish industry recovered quickly after Second World War. By the end of 1946, industrial output had surpassed pre-war numbers. In the immediate post-war period of 1946 to 1951, industry continued to grow rapidly. Many factors contributed to the rapid industrial growth such as war reparations which were largely paid in manufactured products, devaluation of currency in 1945 and 1949, which made dollar rise by 70% against Finnish markka and thus boosted exports to the West as well as rebuilding the country, which increased demand for industrial products. In 1951, the Korean War boosted exports. Finland practiced an active exchange rate policy and devaluation was used several times to raise the competitiveness of exporting industries.

Between 1950 and 1975, Finland's industry was at the mercy of international economic trends. The fast industrial growth in 1953-1955 was followed by a period of more moderate growth which started in 1956. The causes for the deceleration of growth were the general strike of 1956, as well as weakened export trends and easing of the strict regulation of Finland's foreign trade in 1957, which compelled industry to compete against ever toughening international challengers. An economic recession brought industrial output down by 3.4% in 1958. Industry, however, recovered quickly during the international economic boom that followed the recession. One reason for this was the devaluation of the Finnish markka which increased the value of the US dollar up by 39% against the Finnish markka.

International economy was stable in the 1960s. This trend can be seen in Finland as well, where steady growth of industrial output throughout the decade was recorded.

After failed experiments with protectionism, Finland eased restrictions and concluded a free trade agreement with the European Community in 1973, making its markets more competitive. Finland's industrial output declined in 1975. The decline was caused by the free trade agreement that was made between Finland and the European Community in 1973. The agreement subjected Finnish industry to ever toughening international competition and a strong contraction duly followed in Finland's exports to the West. In 1976 and 1977 growth of industrial output was almost zero, but in 1978 it swung back towards strong growth again. In 1978 and 1979 industrial output grew at above average rate. The stimuli for this were three devaluations of Finnish markka, which lowered value of the markka by a total of 19%. Impacts from the Oil Crisis on Finnish industry were also alleviated by Finland's bilateral trade with the Soviet Union.

Local education markets expanded, and an increasing number of Finns also went abroad to study in the United States or Western Europe, bringing back advanced skills. There was a quite common, but pragmatic-minded, credit and investment cooperation by state and corporations, though it was considered with suspicion. Support for capitalism was widespread. On the other hand, communists (Finnish People's Democratic League) have received the most votes (23.2%) in 1958 parliamentary elections. Savings rate hovered among the world's highest, at around 8% until the 1980s. In the beginning of the 1970s, Finland's GDP per capita reached the level of Japan and the UK. Finland's economic development shared many aspects with export-led Asian countries. The official policy of neutrality enabled Finland to trade both with Western and Comecon markets. Significant bilateral trade was conducted with the Soviet Union, but this did not grow into a dependence.

Liberalization
Like other Nordic countries, Finland has liberalized its system of economic regulation since late 1980s. Financial and product market regulations were modified. Some state enterprises were privatized and some tax rates were altered. In 1991, the Finnish economy fell into a severe recession. This was caused by a combination of economic overheating (largely due to a change in the banking laws in 1986 which made credit much more accessible), depressed markets with key trading partners (particularly the Swedish and Soviet markets) as well as local markets, slow growth with other trading partners, and the disappearance of the Soviet bilateral trade. Stock market and housing prices declined by 50%. The growth in the 1980s was based on debt, and when the defaults began rolling in, GDP declined by 13% and unemployment increased from a virtual full employment to one fifth of the workforce. The crisis was amplified by trade unions' initial opposition to any reforms. Politicians struggled to cut spending and the public debt doubled to around 60% of GDP. Much of the economic growth in the 1980s was based on debt financing, and the debt defaults led to a savings and loan crisis. A total of over 10 billion euros were used to bail out failing banks, which led to banking sector consolidation. After devaluations, the depression bottomed out in 1993.

European Union
Finland joined the European Union in 1995. The central bank was given an inflation-targeting mandate until Finland joined the euro zone. The growth rate has since been one of the highest of OECD countries and Finland has topped many indicators of national performance.

Finland was one of the 11 countries joining the third phase of the Economic and Monetary Union of the European Union, adopting the euro as the country's currency, on 1 January 1999. The national currency markka (FIM) was withdrawn from circulation and replaced by the euro (EUR) at the beginning of 2002.

Data
The following table shows the main economic indicators in 1980–2017. Inflation under 2% is in green. Estimates begin after 2021.

Agriculture

Finland's climate and soils make growing crops a particular challenge. The country lies between 60° and 70° north latitude - as far north as Alaska - and has severe winters and relatively short growing seasons that are sometimes interrupted by frosts. However, because the Gulf Stream and the North Atlantic Drift Current moderate the climate, and because of the relatively low elevation of the land area, Finland contains half of the world's arable land north of 60° north latitude. In response to the climate, farmers have relied on quick-ripening and frost-resistant varieties of crops. Most farmland had originally been either forest or swamp, and the soil had usually required treatment with lime and years of cultivation to neutralise excess acid and to develop fertility. Irrigation was generally not necessary, but drainage systems were often needed to remove excess water.

Until the late nineteenth century, Finland's isolation required that most farmers concentrate on producing grains to meet the country's basic food needs. In the fall, farmers planted rye; in the spring, southern and central farmers started oats, while northern farmers seeded barley. Farms also grew small quantities of potatoes, other root crops, and legumes. Nevertheless, the total area under cultivation was still small. Cattle grazed in the summer and consumed hay in the winter. Essentially self-sufficient, Finland engaged in very limited agricultural trade.

This traditional, almost autarkic, production pattern shifted sharply during the late nineteenth century, when inexpensive imported grain from Russia and the United States competed effectively with local grain. At the same time, rising domestic and foreign demand for dairy products and the availability of low-cost imported cattle feed made dairy and meat production much more profitable. These changes in market conditions induced Finland's farmers to switch from growing staple grains to producing meat and dairy products, setting a pattern that persisted into the late 1980s.

In response to the agricultural depression of the 1930s, the government encouraged domestic production by imposing tariffs on agricultural imports. This policy enjoyed some success: the total area under cultivation increased, and farm incomes fell less sharply in Finland than in most other countries. Barriers to grain imports stimulated a return to mixed farming, and by 1938 Finland's farmers were able to meet roughly 90% of the domestic demand for grain.

The disruptions caused by the Winter War and the Continuation War caused further food shortages, especially when Finland ceded territory, including about one-tenth of its farmland, to the Soviet Union. The experiences of the depression and the war years persuaded the Finns to secure independent food supplies to prevent shortages in future conflicts.

After the war, the first challenge was to resettle displaced farmers. Most refugee farmers were given farms that included some buildings and land that had already been in production, but some had to make do with "cold farms," that is, land not in production that usually had to be cleared or drained before crops could be sown. The government sponsored large-scale clearing and draining operations that expanded the area suitable for farming. As a result of the resettlement and land-clearing programs, the area under cultivation expanded by about 450,000 hectares, reaching about 2.4 million hectares by the early 1960s. Finland thus came to farm more land than ever before, an unusual development in a country that was simultaneously experiencing rapid industrial growth.

During this period of expansion, farmers introduced modern production practices. The widespread use of modern inputs—chemical fertilisers and insecticides, agricultural machinery, and improved seed varieties—sharply improved crop yields. Yet the modernisation process again made farm production dependent on supplies from abroad, this time on imports of petroleum and fertilisers. By 1984 domestic sources of energy covered only about 20% of farm needs, while in 1950 domestic sources had supplied 70% of them. In the aftermath of the oil price increases of the early 1970s, farmers began to return to local energy sources such as firewood. The existence of many farms that were too small to allow efficient use of tractors also limited mechanisation. Another weak point was the existence of many fields with open drainage ditches needing regular maintenance; in the mid-1980s, experts estimated that half of the cropland needed improved drainage works. At that time, about 1 million hectares had underground drainage, and agricultural authorities planned to help install such works on another million hectares. Despite these shortcomings, Finland's agriculture was efficient and productive—at least when compared with farming in other European countries.

Forestry
Forests play a key role in the country's economy, making it one of the world's leading wood producers and providing raw materials at competitive prices for the crucial wood processing industries. As in agriculture, the government has long played a leading role in forestry, regulating tree cutting, sponsoring technical improvements, and establishing long-term plans to ensure that the country's forests continue to supply the wood-processing industries.

Finland's wet climate and rocky soils are ideal for forests. Tree stands do well throughout the country, except in some areas north of the Arctic Circle. In 1980 the forested area totaled about 19.8 million hectares, providing 4 hectares of forest per capita—far above the European average of about 0.5 hectares. The proportion of forest land varied considerably from region to region. In the central lake plateau and in the eastern and northern provinces, forests covered up to 80% of the land area, but in areas with better conditions for agriculture, especially in the southwest, forests accounted for only 50 to 60% of the territory. The main commercial tree species—pine, spruce, and birch—supplied raw material to the sawmill, pulp, and paper industries. The forests also produced sizable aspen and elder crops.

The heavy winter snows and the network of waterways were used to move logs to the mills. Loggers were able to drag cut trees over the winter snow to the roads or water bodies. In the southwest, the sledding season lasted about 100 days per year; the season was even longer to the north and the east. The country's network of lakes and rivers facilitated log floating, a cheap and rapid means of transport. Each spring, crews floated the logs downstream to collection points; tugs towed log bundles down rivers and across lakes to processing centers. The waterway system covered much of the country, and by the 1980s Finland had extended roadways and railroads to areas not served by waterways, effectively opening up all of the country's forest reserves to commercial use.

Forestry and farming were closely linked. During the twentieth century, government land redistribution programmes had made forest ownership widespread, allotting forestland to most farms. In the 1980s, private farmers controlled 35% of the country's forests; other persons held 27%; the government, 24%; private corporations, 9%; and municipalities and other public bodies, 5%. The forestlands owned by farmers and by other people—some 350,000 plots—were the best, producing 75 to 80% of the wood consumed by industry; the state owned much of the poorer land, especially that in the north.

The ties between forestry and farming were mutually beneficial. Farmers supplemented their incomes with earnings from selling their wood, caring for forests, or logging; forestry made many otherwise marginal farms viable. At the same time, farming communities maintained roads and other infrastructure in rural areas, and they provided workers for forest operations. Indeed, without the farming communities in sparsely populated areas, it would have been much more difficult to continue intensive logging operations and reforestation in many prime forest areas.

The Ministry of Agriculture and Forestry has carried out forest inventories and drawn up silvicultural plans. According to surveys, between 1945 and the late 1970s foresters had cut trees faster than the forests could regenerate them. Nevertheless, between the early 1950s and 1981, Finland was able to boost the total area of its forests by some 2.7 million hectares and to increase forest stands under 40 years of age by some 3.2 million hectares. Beginning in 1965, the country instituted plans that called for expanding forest cultivation, draining peatland and waterlogged areas, and replacing slow-growing trees with faster-growing varieties. By the mid-1980s, the Finns had drained 5.5 million hectares, fertilized 2.8 million hectares, and cultivated 3.6 million hectares. Thinning increased the share of trees that would produce suitable lumber, while improved tree varieties increased productivity by as much as 30%.

Comprehensive silvicultural programmes had made it possible for the Finns simultaneously to increase forest output and to add to the amount and value of the growing stock. By the mid-1980s, Finland's forests produced nearly 70 million cubic meters of new wood each year, considerably more than was being cut. During the postwar period, the annual cut increased by about 120% to about 50 million cubic meters. Wood burning fell to one-fifth the level of the immediate postwar years, freeing up wood supplies for the wood-processing industries, which consumed between 40 million and 45 million cubic meters per year. Indeed, industry demand was so great that Finland needed to import 5 million to 6 million cubic meters of wood each year.

To maintain the country's comparative advantage in forest products, Finnish authorities moved to raise lumber output toward the country's ecological limits. In 1984 the government published the Forest 2000 plan, drawn up by the Ministry of Agriculture and Forestry. The plan aimed at increasing forest harvests by about 3% per year, while conserving forestland for recreation and other uses. It also called for enlarging the average size of private forest holdings, increasing the area used for forests, and extending forest cultivation and thinning. If successful, the plan would make it possible to raise wood deliveries by roughly one-third by the end of the twentieth century. Finnish officials believed that such growth was necessary if Finland was to maintain its share in world markets for wood and paper products.

Industry
Since the 1990s, Finnish industry, which for centuries had relied on the country's vast forests, has become increasingly dominated by electronics and services, as globalization led to a decline of more traditional industries. Outsourcing resulted in more manufacturing being transferred abroad, with Finnish-based industry focusing to a greater extent on R&D and hi-tech electronics.

Electronics
The Finnish electronics and electrotechnics industry relies on heavy investment in R&D, and has been accelerated by the liberalisation of global markets. Electrical engineering started in the late 19th century with generators and electric motors built by Gottfried Strömberg, now part of the ABB. Other Finnish companies – such as Instru, Vaisala and Neles (now part of Metso) - have succeeded in areas such as industrial automation, medical and meteorological technology. Nokia was once a world leader in mobile telecommunications.

Metals, engineering and manufacturing
Finland has an abundance of minerals, but many large mines have closed down, and most raw materials are now imported. For this reason, companies now tend to focus on high added-value processing of metals. The exports include steel, copper, chromium, gold, zinc and nickel, and finished products such as steel roofing and cladding, welded steel pipes, copper pipe and coated sheets. Outokumpu is known for developing the flash smelting process for copper production and stainless steel.

In 2019, the country was the world's 5th largest producer of chromium, the 17th largest world producer of sulfur and the 20th largest world producer of phosphate

With regard to vehicles, the Finnish motor industry consists mostly of manufacturers of tractors (Valtra, formerly Valmet tractor), forest machines (f.ex. Ponsse), military vehicles (Sisu, Patria), trucks (Sisu Auto), buses and Valmet Automotive, a contract manufacturer, whose factory in Uusikaupunki produces Mercedes-Benz cars. Shipbuilding is an important industry: the world's largest cruise ships are built in Finland; also, the Finnish company Wärtsilä produces the world's largest diesel engines and has market share of 47%. In addition, Finland also produces train rolling stock.

The manufacturing industry is a significant employer of about 400,000 people.

Mining

 * Ahmavaara mine (Gold, copper, nickel)
 * Koivu mine (Titanium)
 * Konttijärvi mine (Gold, copper, nickel)
 * Mustavaara mine (Vanadium)
 * Portimo mine (Gold)
 * Sokli mine (Phosphates)
 * Suhanko mine (Gold, copper, nickel)

Chemical industry
The chemical industry is one of the Finland's largest industrial sectors with its roots in tar making in the 17th century. It produces an enormous range of products for the use of other industrial sectors, especially for forestry and agriculture. In addition, its produces plastics, chemicals, paints, oil products, pharmaceuticals, environmental products, biotech products and petrochemicals. In the beginning of this millennium, biotechnology was regarded as one of the most promising high-tech sectors in Finland. In 2006 it was still considered promising, even though it had not yet become "the new Nokia".

Pulp and paper industry

Forest products has been the major export industry in the past, but diversification and growth of the economy has reduced its share. In the 1970s, the pulp and paper industry accounted for half of Finnish exports. Although this share has shrank, pulp and paper is still a major industry with 52 sites across the country. Furthermore, several of large international corporations in this business are based in Finland. Stora Enso and UPM were placed No. 1 and No. 3 by output in the world, both producing more than ten million tons. M-real and Myllykoski also appear on the top 100 list.

Energy industry
Finland's energy supply is divided as follows: nuclear power 26%, net imports 20%, hydroelectric power 16%, combined production district heat 18%, combined production industry 13%, condensing power 6%. One half of all the energy consumed in Finland goes to industry, one fifth to heating buildings and one fifth to transport. Lacking indigenous fossil fuel resources, Finland has been an energy importer. This might change in the future since Finland is currently building its fifth nuclear reactor, and approved building permits for its sixth and seventh ones. There are some uranium resources in Finland, but to date no commercially viable deposits have been identified for exclusive mining of uranium. However, permits have been granted to Talvivaara to produce uranium from the tailings of their nickel-cobalt mine.

Companies
Notable companies in Finland include Nokia, the former market leader in mobile telephony; Stora Enso, the largest paper manufacturer in the world; Neste Oil, an oil refining and marketing company; UPM-Kymmene, the third largest paper manufacturer in the world; Aker Finnyards, the manufacturer of the world's largest cruise ships (such as Royal Caribbean's Freedom of the Seas); Rovio Mobile, video game developer most notable for creating Angry Birds; KONE, a manufacturer of elevators and escalators; Wärtsilä, a producer of power plants and ship engines; and Finnair, the largest Helsinki-Vantaa based international airline. Additionally, many Nordic design firms are headquartered in Finland. These include the Fiskars owned Iittala Group, Artek a furniture design firm co-created by Alvar Aalto, and Marimekko made famous by Jacqueline Kennedy Onassis. Finland has sophisticated financial markets comparable to the UK in efficiency. Though foreign investment is not as high as some other European countries, the largest foreign-headquartered companies included names such as ABB, Tellabs, Carlsberg and Siemens.

Around 70-80% of the equity quoted on the Helsinki Stock Exchange are owned by foreign-registered entities. The larger companies get most of their revenue from abroad, and the majority of their employees work outside the country. Cross-shareholding has been abolished and there is a trend towards an Anglo-Saxon style of corporate governance. However, only around 15% of residents have invested in stock market, compared to 20% in France, and 50% in the US.

Between 2000 and 2003, early stage venture capital investments relative to GDP were 8.5% against 4% in the EU and 11.5 in the US. Later stage investments fell to the EU median. Invest in Finland and other programs attempt to attract investment. In 2000 FDI from Finland to overseas was 20 billion euro and from overseas to Finland 7 billion euro. Acquisitions and mergers have internationalized business in Finland.

Although some privatization has been gradually done, there are still several state-owned companies of importance. The government keeps them as strategic assets or because they are natural monopoly. These include e.g. Neste (oil refining and marketing), VR (rail), Finnair, VTT (research) and Posti Group (mail). Depending on the strategic importance, the government may hold either 100%, 51% or less than 50% stock. Most of these have been transformed into regular limited companies, but some are quasi-governmental (liikelaitos), with debt backed by the state, as in the case of VTT.

In 2022, the sector with the highest number of companies registered in Finland is Services with 191,796 companies followed by Finance, Insurance, and Real Estate and Agriculture, Forestry, and Fishing with 159,158 and 102,452 companies respectively.

Household income and consumption
Finland's income is generated by the approximately 1.8 million private sector workers, who make an average 25.1 euro per hour (before the median 60% tax wedge) in 2007. According to a 2003 report, residents worked on average around 10 years for the same employer and around 5 different jobs over a lifetime. 62% worked for small and medium-sized enterprises. Female employment rate was high and gender segregation on career choices was higher than in the US. In 1999 part-time work rate was one of the smallest in OECD.

Future liabilities are dominated by the pension deficit. Unlike in Sweden, where pension savers can manage their investments, in Finland employers choose a pension fund for the employee. The pension funding rate is higher than in most Western European countries, but still only a portion of it is funded and pensions exclude health insurances and other unaccounted promises. Directly held public debt has been reduced to around 32% in 2007. In 2007, the average household savings rate was -3.8 and household debt 101% of annual disposable income, a typical level in Europe.

In 2008, the OECD reported that "the gap between rich and poor has widened more in Finland than in any other wealthy industrialised country over the past decade" and that "Finland is also one of the few countries where inequality of incomes has grown between the rich and the middle-class, and not only between rich and poor."

In 2006, there were 2,381,500 households of average size 2.1 people. Forty% of households consisted of single person, 32% two and 28% three or more. There were 1.2 million residential buildings in Finland and the average residential space was 38 square metres per person. The average residential property (without land) cost 1,187 euro per square metre and residential land on 8.6 euro per square metre. Consumer energy prices were 8-12 euro cent per kilowatt hour. 74% of households had a car. There were 2.5 million cars and 0.4 other vehicles. Around 92% have mobile phones and 58% Internet connection at home. The average total household consumption was 20,000 euro, out of which housing at around 5500 euro, transport at around 3000 euro, food and beverages excluding alcoholic at around 2500 euro, recreation and culture at around 2000 euro. Upper-level white-collar households (409,653) consumed an average 27,456 euro, lower-level white-collar households (394,313) 20,935 euro, and blue-collar households (471,370) 19,415 euro.

Unemployment
The unemployment rate was 10.3% in 2015. The employment rate is (persons aged 15–64) 66.8%. Unemployment security benefits for those seeking employment are at an average OECD level. The labor administration funds labour market training for unemployed job seekers, the training for unemployed job seeker can last up to 6 months, which is often vocational. The aim of the training is to improve the channels of finding employment.

Euro Membership
The American economist and The New York Times columnist Paul Krugman has suggested that the short term costs of euro membership to the Finnish economy outweigh the large gains caused by greater integration with the European economy. Krugman notes that Sweden, which has yet to join the single currency, had similar rates of growth compared to Finland for the period since the introduction of the euro.

Membership of the euro protects Finland from currency fluctuations, which is particularly important for small member states of the European Union like Finland that are highly integrated into the larger European economy. If Finland had retained its own currency, unpredictable exchange rates would prevent the country from selling its products at competitive prices on the European market. In fact, business leaders in Sweden, which is obliged to join the euro when its economy has converged with the eurozone, are almost universal in their support for joining the euro. Although Sweden's currency is not officially pegged to the euro like Denmark's currency the Swedish government maintains an unofficial peg. This exchange rate policy has in the short term benefited the Swedish economy in two ways; (1) much of Sweden's European trade is already denominated in euros and therefore bypasses any currency fluctuation and exchange rate losses, (2) it allows Sweden's non-euro-area exports to remain competitive by dampening any pressure from the financial markets to increase the value of the currency.

Maintaining this balance has allowed the Swedish government to borrow on the international financial markets at record low interest rates and allowed the Swedish central bank to quantitatively ease into a fundamentally sound economy. This has led Sweden's economy to prosper at the expense of less sound economies who have been impacted by the 2008 financial crisis. Sweden's economic performance has therefore been slightly better than Finland's since the financial crisis of 2008. Much of this disparity has, however, been due to the economic dominance of Nokia, Finland's largest company and Finland's only major multinational. Nokia supported and greatly benefited from the euro and the European single market, particularly from a common European digital mobile phone standard (GSM), but it failed to adapt when the market shifted to mobile computing.

One reason for the popularity of the euro in Finland is the memory of a 'great depression' which began in 1990, with Finland not regaining it competitiveness until approximately a decade later when Finland joined the single currency. Some American economists like Paul Krugman claim not to understand the benefits of a single currency and allege that poor economic performance is the result of membership of the single currency. These economists do not, however, advocate separate currencies for the states of the United States, many of which have quite disparate economies.

Public policy
Finnish politicians have often emulated other Nordics and the Nordic model. Nordic's have been free-trading and relatively welcoming to skilled migrants for over a century, though in Finland immigration is a relatively new phenomenon. This is due largely to Finland's less hospitable climate and the fact that the Finnish language shares roots with none of the major world languages, making it more challenging than average for most to learn. The level of protection in commodity trade has been low, except for agricultural products.

As an economic environment, Finland's judiciary is efficient and effective. Finland is highly open to investment and free trade. Finland has top levels of economic freedom in many areas, although there is a heavy tax burden and inflexible job market. Finland is ranked 16th (ninth in Europe) in the 2008 Index of Economic Freedom. Recently, Finland has topped the patents per capita statistics, and overall productivity growth has been strong in areas such as electronics. While the manufacturing sector is thriving, OECD points out that the service sector would benefit substantially from policy improvements. The IMD World Competitiveness Yearbook 2007 ranked Finland 17th most competitive, next to Germany, and lowest of the Nordics. while the World Economic Forum report has ranked Finland the most competitive country. Finland is one of the most fiscally responsible EU countries. According to the grand jury of the 2006 European Enterprise Awards, effective "entrepreneurial thinking" was held to be at the root of central Finland's position as "the most entrepreneur-friendly region in the world".

Product market
Economists attribute much growth to reforms in the product markets. According to OECD, only four EU-15 countries have less regulated product markets (UK, Ireland, Denmark and Sweden) and only one has less regulated financial markets (Denmark). Nordic countries were pioneers in liberalising energy, postal, and other markets in Europe. The legal system is clear and business bureaucracy less than most countries. For instance, starting a business takes an average of 14 days, compared to the world average of 43 days and Denmark's average of 6 days. Property rights are well protected and contractual agreements are strictly honored. Finland is rated one of the least corrupted countries in Corruption Perceptions Index. Finland is rated 13th in the Ease of Doing Business Index. It indicates exceptional ease to trade across borders (5th), enforce contracts (7th), and close a business (5th), and exceptional hardship to employ workers (127th) and pay taxes (83rd).

Job market
According to the OECD, Finland's job market is the least flexible of the Nordic countries. Finland increased job market regulation in the 1970s to provide stability to manufacturers. In contrast, during the 1990s, Denmark liberalised its job market, Sweden moved to more decentralised contracts, whereas Finnish trade unions blocked many reforms. Many professions have legally recognized industry-wide contracts that lay down common terms of employment including seniority levels, holiday entitlements, and salary levels, usually as part of a Comprehensive Income Policy Agreement. Those who favor less centralized labor market policies consider these agreements bureaucratic, inflexible, and along with tax rates, a key contributor to unemployment and distorted prices. Centralized agreements may hinder structural change as there are fewer incentives to acquire better skills, although Finland already enjoys one of the highest skill-levels in the world.

Taxation
Tax is collected mainly from municipal income tax, state income tax, state value added tax, customs fees, corporate taxes and special taxes. There are also property taxes, but municipal income tax pays most of municipal expenses. Taxation is conducted by a state agency, Verohallitus, which collects income taxes from each paycheck, and then pays the difference between tax liability and taxes paid as tax rebate or collects as tax arrears afterward. Municipal income tax is a flat tax of nominally 15-20%, with deductions applied, and directly funds the municipality (a city or rural locality). The state income tax is a progressive tax; low-income individuals do not necessarily pay any. The state transfers some of its income as state support to municipalities, particularly the poorer ones. Additionally, the state churches - Finnish Evangelical Lutheran Church and Finnish Orthodox Church - are integrated to the taxation system in order to tax their members.

The middle income worker's tax wedge is 46% and effective marginal tax rates are very high. Value-added tax is 24% for most items. Capital gains tax is 30-34% and corporate tax is 20%, about the EU median. Property taxes are low, but there is a transfer tax (1.6% for apartments or 4% for individual houses) for home buyers. There are high excise taxes on alcoholic beverages, tobacco, automobiles and motorcycles, motor fuels, lotteries, sweets and insurances. For instance, McKinsey estimates that a worker has to pay around 1600 euro for another's 400 euro service - restricting service supply and demand - though some taxation is avoided in the black market and self-service culture. Another study by Karlson, Johansson & Johnsson estimates that the fraction of the buyer's income entering the service vendor's wallet (inverted tax wedge) is slightly over 15%, compared to 10% in Belgium, 25% in France, 40% in Switzerland and 50% in the United States. Tax cuts have been in every post-depression government's agenda and the overall tax burden is now around 43% of GDP compared to 51.1% in Sweden, 34.7% in Germany, 33.5% in Canada, and 30.5% in Ireland.

High income workers, for instance someone making 10000€/month gross, living in the city of Vantaa and using 3000€/year on commuting to work, pay 60% income tax plus 8.65% social security payments (this varies mildly depending on the age of the worker, but for someone born in 1975, it is currently in the year 2022, 8.65%). This means that 68.65% of the gross income goes to taxes and tax like payments.

State and municipal politicians have struggled to cut their consumption, which is very high at 51.7% of GDP compared to 56.6% in Sweden, 46.9% in Germany, 39.3% in Canada, and 33.5% in Ireland. Much of the taxes are spent on public sector employees, which amount to 124,000 state employees and 430,000 municipal employees. That is 113 per 1000 residents (over a quarter of workforce) compared to 74 in the US, 70 in Germany, and 42 in Japan (8% of workforce). The Economist Intelligence Unit's ranking for Finland's e-readiness is high at 13th, compared to 1st for United States, 3rd for Sweden, 5th for Denmark, and 14th for Germany. Also, early and generous retirement schemes have contributed to high pension costs. Social spending such as health or education is around OECD median. Social transfers are also around OECD median. In 2001 Finland's outsourced proportion of spending was below Sweden's and above most other Western European countries. Finland's health care is more bureaucrat-managed than in most Western European countries, though many use private insurance or cash to enjoy private clinics. Some reforms toward more equal marketplace have been made in 2007–2008. In education, child nurseries, and elderly nurseries private competition is bottom-ranking compared to Sweden and most other Western countries. Some public monopolies such Alko remain, and are sometimes challenged by the European Union. The state has a programme where the number of jobs decreases by attrition: for two retirees, only one new employee is hired.

Occupational and income structure
Finland's export-dependent economy continuously adapted to the world market; in doing so, it changed Finnish society as well. The prolonged worldwide boom, beginning in the late 1940s and lasting until the first oil crisis in 1973, was a challenge that Finland met and from which it emerged with a highly sophisticated and diversified economy, including a new occupational structure. Some sectors kept a fairly constant share of the work force. Transportation and construction, for example, each accounted for between 7 and 8% in both 1950 and 1985, and manufacturing's share rose only from 22 to 24%. However, both the commercial and the service sectors more than doubled their share of the work force, accounting, respectively, for 21 and 28% in 1985. The greatest change was the decline of the economically active population employed in agriculture and forestry, from approximately 50% in 1950 to 10% in 1985. The exodus from farms and forests provided the labour power needed for the growth of other sectors.

Studies of Finnish mobility patterns since World War II have confirmed the significance of this exodus. Sociologists have found that people with a farming background were present in other occupations to a considerably greater extent in Finland than in other West European countries. Finnish data for the early 1980s showed that 30 to 40% of those in occupations not requiring much education were the children of farmers, as were about 25% in upper-level occupations, a rate two to three times that of France and noticeably higher than that even of neighboring Sweden. Finland also differed from the other Nordic countries in that the generational transition from the rural occupations to white-collar positions was more likely to be direct, bypassing manual occupations.

The most important factor determining social mobility in Finland was education. Children who attained a higher level of education than their parents were often able to rise in the hierarchy of occupations. In the Helsinki Metropolitan Area, those who are more educated, in the long-run, will move to newer centrally located buildings. A tripling or quadrupling in any one generation of the numbers receiving schooling beyond the required minimum reflected the needs of a developing economy for skilled employees. Obtaining advanced training or education was easier for some than for others, however, and the children of white-collar employees still were more likely to become white-collar employees themselves than were the children of farmers and blue-collar workers. In addition, children of white-collar professionals were more likely than not to remain in that class.

The economic transformation also altered income structure. A noticeable shift was the reduction in wage differentials. The increased wealth produced by an advanced economy was distributed to wage earners via the system of broad income agreements that evolved in the postwar era. Organized sectors of the economy received wage hikes even greater than the economy's growth rate. As a result, blue-collar workers' income came, in time, to match more closely the pay of lower level white-collar employees, and the income of the upper middle class declined in relation to that of other groups.

The long trend of growth in living standards paired with diminishing differences between social classes was dramatically reversed during the 1990s. For the first time in the history of Finland income differences have sharply grown. This change has been mostly driven by the growth of income from capital to the wealthiest segment of the population.

title: Economy of Finland


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Telecommunications in Finland

Telecommunications in Finland, as indicated by a 2022 European Commission index, highlight the country's significant role in the EU's digital sector. Finland has a high concentration of Information and Communication Technology (ICT) specialists and robust training programs, leading to notable expertise in technologies like AI and cloud computing. The nation has also made significant advancements in 5G technology. Additionally, Finland stands out for its high adoption of digital public services. The Finnish digital sector benefits from both the technology industry's contributions and government policies aimed at enhancing digital infrastructure and cybersecurity.

Fixed broadband
In the European Commission's 2022 Digital Economy and Society Index (DESI) report, Finland is ranked 8th in connectivity among 27 EU countries, but it faces challenges in its digital infrastructure. Fixed broadband adoption stands at 61%, below the EU average of 78%. Very High Capacity Network (VHCN) coverage is 68%, slightly lower than the EU's 70%, with rural areas affected, having only 12.4% VHCN coverage. Fiber to the Premises (FTTP) coverage is at 40%, compared to the EU average of 50%. To address these issues, the Finnish government plans to expand VHCN coverage through national broadband and digital infrastructure initiatives. Despite funding challenges, the government allocated EUR 16 million from the European Agricultural Fund for Rural Development (EAFRD) in 2021 for fiber network development.

Mobile broadband
Finland's mobile broadband performance is strong, with 72% 5G coverage, surpassing the EU average of 66%, and a 96% mobile broadband adoption rate, exceeding the EU average of 87%. This achievement can be attributed to extensive 4G and 5G availability, covering 72% of populated areas. The early allocation of 5G pioneer bands (700 MHz in 2016, 3.6 GHz in 2018, and 26 GHz in 2020) has played a key role in achieving this widespread coverage. Recent frequency usage changes near Russia are expected to further improve 5G services in those regions.

Integration of digital technology
The country ranks at the forefront of digital technology integration within the EU. Notably, 82% of Finnish small and medium-sized enterprises (SMEs) exhibit basic digital intensity, higher than the EU average of 55%. Finland distinguishes itself in the adoption of advanced technologies, with 22% using big data, 66% of companies utilizing cloud solutions, and 16% implementing artificial intelligence (AI)—figures that are higher than the EU averages of 14%, 34%, and 8%, respectively. Further, 83% of Finnish companies have adopted e-invoices in contrast to the EU's average of 32%. On the aspect of ICT for environmental sustainability, 77% of Finnish enterprises report medium or high intensity of green action through ICT, which exceeds the EU average of 66%.

Digital public services
Finland has established itself as a leader in digital public services within the EU, as evidenced by the DESI 2022 report, which notes that 92% of Finnish internet users engage with e-government services compared to the EU average of 65%. This high level of engagement is attributed to Finland's progress in digital services, as seen in the My Kanta portal, which promotes digital health by providing citizens with secure access to their medical records and health services online.

In the areas of open data and artificial intelligence (AI), Finland achieves scores of 90 and 93 out of 100 for providing digital services to citizens and businesses, respectively, surpassing the EU averages of 75 and 82. An example of Finland's application of AI to enhance public services is the AuroraAI program, which is designed to facilitate personalized access to a range of public services. Additionally, Finland is enhancing its digital identity infrastructure to offer a secure, unified electronic identification system, improving access to digital services across sectors. The Ministerial Working Group on "Digitalisation, Data Economy, and Public Administration" is tasked with both advancing and safeguarding Finland's digital framework, which includes a focus on cybersecurity.

Telephones
Telephones – main lines in use: 2.368 million (2004)

Telephones – mobile cellular: 4.988 million (2004)

Telephone system: General Assessment: Modern system with excellent service.

Domestic: Digital fiber-optic fixed-line network and an extensive cellular network provide domestic needs. There are three major cellular network providers with independent networks (Elisa Oyj, Telia Finland and DNA Oyj). There are several smaller providers which may have independent networks in smaller areas, but are generally dependent on rented networks. There is a great variety of cellular providers and contracts, and competition is particularly fierce.

International: Country code – 358; 2 submarine cable (Finland-Estonia and Finland-Sweden Connection); satellite earth stations – access to Intelsat transmission service via a Swedish satellite earth station, 1 Inmarsat (Atlantic and Indian Ocean regions); note – Finland shares the Inmarsat earth station with the other Nordic countries (Denmark, Iceland, Norway, and Sweden).

Radio and television
There is a national public radio and television company Yleisradio (Yle), which was previously funded by television license fees, but nowadays via the YLE tax. and two major private media companies, Alma Media and Sanoma, with national TV channels. Yle maintains four TV channels YLE1, YLE2, Teema and FST5. There are four commercial, national channels: Alma Media has MTV3 and SubTV, and Sanoma has Nelonen and Jim. There are also a lot of pay-TV channels. News Corporation introduced itself to the market in 2012 with the Fox channel, which was preceded by Finnish-owned SuomiTV.

Radio broadcast stations
AM 2, FM 186, shortwave 1 (1998)

Television broadcast stations
120 (plus 431 repeaters) (1999)

Television is broadcast as digital (DVB-T) only since August 2007. On cable, only digital (DVB-C) will be broadcast from 2008 on.

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: Telecommunications in Finland


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Transport in Finland

The transport system of Finland is well-developed. Factors affecting traffic include the sparse population and long distance between towns and cities, and the cold climate with waterways freezing and land covered in snow for winter.

The extensive road system is utilized by most internal cargo and passenger traffic. , the country's network of main roads has a total length of around 78162 km and all public roads 104161 km. The motorway network totals 779 km with additional 124 km reserved only for motor traffic. Road network expenditure of around €1 billion is paid with vehicle and fuel taxes that amount to around €1.5 billion and €1 billion, respectively.

The main international passenger gateway is Helsinki-Vantaa Airport with over 20 million passengers in 2018. About 25 airports have scheduled passenger services. They are financed by competitive fees and rural airport may be subsidized. The Helsinki-Vantaa based Finnair (known for an Asia-focused strategy), Nordic Regional Airlines provide air services both domestically and internationally. Helsinki has an optimal location for great circle routes between Western Europe and the Far East. Hence, many international travelers visit Helsinki on a stop-over between Asia and Europe.

Despite low population density, taxpayers spend annually around €350 million in maintaining 5865 km railway tracks even to many rural towns. Operations are privatized and currently the only operator is the state-owned VR. It has 5 percent passenger market share (out of which 80 percent are urban trips in Greater Helsinki) and 25 percent cargo market share. Helsinki has an urban rail network.

Icebreakers keep the 23 ports open all year round. There is passenger traffic from Helsinki and Turku, which have ferry connections to Tallinn, Mariehamn, Sweden and several other destinations.

Roads
Road transport in Finland is the most popular method of transportation, particularly in rural areas where the railway network does not extend to. there are 78162 km of public roads, of which 51016 km are paved. The main road network comprises over 13329 km of road.

Highways
64% of all traffic on public roads takes place on main roads, which are divided into class I (valtatie/riksväg) and class II (kantatie/stamväg) main roads. Motorways have been constructed in the country since the 1960s, but they are still reasonably rare because traffic volumes are not large enough to motivate their construction. There are 863 km of motorways. Longest stretches are Helsinki–Turku (Main road 1/E18), Vantaa–Ylöjärvi (Main road 3/E12), Helsinki–Heinola (Main road 4/E75), and Helsinki–Vaalimaa (Main road 7/E18). The world's northernmost motorway is also located in Finland between Keminmaa and Tornio (Main road 29/E8).

There are no toll roads in Finland.

Speed limits
Speed limits change depending on the time of the year; the maximum speed limit on motorways is 120 km/h in the summer and 100 km/h in the winter. The main roads usually have speed limits of either 100 km/h or 80 km/h. Speed limits in urban areas range between 30 km/h and 60 km/h. If no other speed limit is signposted, the general speed limit in Finland is 50 km/h in built-up areas and  80 km/h outside.

Vehicles
, there are 4,95 million registered automobiles, of which 2,58 million cars. Average age of cars (museum cars excluded) is 12,5 years (in some regions even 15 years), and typically the cars are destroyed in age of 24 years. In 2015, ca. 123 000 new vehicles were registered in Finland. About 550,000–600,000 used automobiles are sold each year in Finland. During 2011–2014 the most sold car brand was Volkswagen. It had a market share of 12% of new cars.

Public transport
Coaches are mainly operated by private companies and provide services widely across the country. There is a large network of ExpressBus services with connections to all major cities and the most important rural areas as well as a burgeoning OnniBus 'cheap bus' network. Coach stations are operated by Matkahuolto.

Local bus services inside cities and towns have often been tightly regulated by the councils. Many councils also have their own bus operators, such as Tampere City Transit (TKL), which operates some bus lines on a commercial basis in competition with privately owned providers. Regional bus lines have been regulated by the provincial administration to protect old transit companies, leading to cartel situations like TLO in the Turku region, but strong regional regulating bodies, like the Helsinki Regional Transport Authority (HSL/HRT), whose routes are put out to tender exist as well and will become the norm after the transitional period during the 2010s.

Accidents
In 2015, number of road traffic accidents involving personal injury was 5,164. In them, 266 persons were killed. The number of road deaths per million inhabitants is just below the European average. Traffic safety has improved significantly since the early 1970s, when more than one thousand people died in road traffic every year.

Parking
Municipal law 30-31 § gives right to Referendum since year 1990. Citizens of Turku collected 15,000 names in one month for referendum against the underground car park. Politicians with in the elections unknown financing from the parking company neglected the citizens opinion. According to International Association of Public Transport UITP parking places are among the most effective ways to promote private car use in the city. Therefore, many European cities have cancelled the expensive underground car parking after the 1990s. The EU recommended actions cover develop guidance for concrete measures for the internalisation of external costs for car traffic also in urban areas. In Finland the shops routinely offer free parking for private cars.

Cycling

In Finland, where 13% of the population reports cycling as their primary form of movement. In 2016, the first Bicycle-sharing system, Helsinki City Bikes was opened in Finland.

Railways

The Finnish railway network consists of a total of 5919 km of railways built with. 3072 km of track is electrified. In 2010, passengers made 13.4 million long-distance voyages and 55.5 million trips in local traffic. On the same year, over 35000000 t of freight were transported.

Finland's first railway was opened between Helsinki and Hämeenlinna in 1862, and today it forms part of the Finnish Main Line (päärata), which is more than 800 kilometers long. Nowadays, passenger trains are operated by the state-owned VR. They serve all the major cities and many rural areas, complemented by bus connections where needed. Most passenger train services originate or terminate at Helsinki Central railway station, and a large proportion of the passenger rail network radiates out of Helsinki. High-speed Pendolino services are operated from Helsinki to other major cities like Jyväskylä, Joensuu, Kuopio, Oulu, Tampere and Turku. Modern InterCity services complement the Pendolino network, and cheaper and older long and short-distance trains operate in areas with fewer passengers.

The Helsinki area has three urban rail systems: a tramway, a metro, and a commuter rail system. Light rail systems are currently being planned for Helsinki and also for Turku and Tampere, two of the country's other major urban centres.

Metro
The Helsinki metro is a 43-kilometer broad-gauge metro system that connects the center of Helsinki with the eastern districts and the western Espoo. The capital region has the northernmost metro system in the world and the only one in Finland. The Helsinki metro was opened on August 2, 1982, initially between Rautatientori and Itäkeskus. On November 18, 2017, Länsimetro extended the metro lines from the inner city to the west, via Lauttasaari to Tapiola and Matinkylä, and on December 3, 2022, all the way to Kivenlahti.

High-speed rail
There are plans to link Helsinki to Turku and Tampere by high-speed lines resulting in journey times of an hour between the capital and the two cities. A link to Kouvola is also planned. The estimated cost of these lines is €10 billion.

Trams and light rail
In Finland there have been two cities with trams: Helsinki and Tampere. Of the older systems only Helsinki has retained its tramway network. The trams in Viipuri, having been lost to Soviet Union in 1945, ceased operations in 1957, while the Turku tramway network shut down in 1972.

In November 2016, Tampere city council approved the construction of a new light rail system. Construction of phase 1 begun late 2016 and finished in 2021. Tampere trams are already operating but the official opening date is 9 August 2021. Turku also has preliminary plans for new tram system, but no decision to build it has been made.

Helsinki currently operates 10 tramlines on a network of approximately 90 km of track in passenger service. The trams have annually 57 million passengers.

Air transport
There are 148 airfields, 74 of which have paved runways. 21 airports are served by scheduled passenger flights. By far the largest airport is Helsinki-Vantaa Airport, and the second largest by passenger volume is Oulu Airport. The larger airports are managed by the state-owned Finavia (formerly the Finnish Civil Aviation Administration). Finnair, Nordic Regional Airlines and Norwegian Air Shuttle are the main carriers for domestic flights.

Helsinki-Vantaa airport is Finland's global gateway with scheduled non-stop flights to such places as Bangkok, Beijing, Guangzhou, Nagoya, New York, Osaka, Shanghai, Hong Kong and Tokyo. Helsinki has an optimal location for great circle airline traffic routes between Western Europe and the Far East. The airport is located approximately 19 kilometers north of Helsinki's downtown in the city of Vantaa, thus the name Helsinki-Vantaa.

Other airports with regular scheduled international connections are Kokkola-Pietarsaari Airport, Mariehamn Airport, Tampere-Pirkkala Airport, Turku Airport and Vaasa Airport.

Water transport
The Finnish Maritime Administration is responsible for the maintenance of Finland's waterway network. Finland's waterways includes some 7600 km of coastal fairways and 7900 km of Finland waterways (on rivers, canals, and lakes). Saimaa Canal connects Lake Saimaa, and thus much of the inland waterway system of Finland, with the Baltic Sea at Vyborg (Viipuri). However, the lower part of the canal is currently located in Russia. To facilitate through shipping, Finland leases the Russian section of the canal from Russia (the original agreement with the Soviet Union dates to 1963).

The largest general port is Port of Hamina-Kotka. Port of Helsinki is the busiest passenger harbour, and it also has significant cargo traffic. By cargo tons, the five busiest ports are Hamina-Kotka, Helsinki, Rauma, Kilpilahti and Naantali.

Icebreakers keep 23 ports open for traffic even in winter. The ports in Gulf of Bothnia need icebreakers in average six months a year, while in Gulf of Finland icebreakers are needed for three months a year.

Frequent ferry service connects Finland with Estonia and Sweden. Baltic cruise liners regularly call on the port of Helsinki as well. In domestic service, ferries connect Finland's islands with the mainland. Finland's cargo ports move freight both for Finland's own needs and for transshipment to Russia.

Waterways/Canals
Finland's canals are primarily located in inland waters. The canals of the Finnish sea area are mostly made for small boating. In terms of water traffic, a significant reason for canalization has been floating operations. For water management, canals have been built especially for Log driving and hydropower projects.

In order to lower and drain Lake Pohjalanjärvi, the depression of Rautajoki was deepened by canalization. The Finnish Waterways Association was founded in 1981 to promote the development of waterways and the construction of canals.

title: Transport in Finland


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Finnish Defence Forces

The Finnish Defence Forces (FDF) (Puolustusvoimat, Försvarsmakten) are the military of Finland. The Finnish Defence Forces consist of the Finnish Army, the Finnish Navy, and the Finnish Air Force. In wartime, the Finnish Border Guard becomes part of the Finnish Defence Forces.

Universal male conscription is in place, under which all mentally and physically capable men serve for 165, 255, or 347 days, from the year they turn 18 until the year they turn 29. Alternative non-military service for men and voluntary service for women is available.

Finland's official policy states that a wartime military strength of 280,000 personnel constitutes a sufficient deterrent. The army consists of a highly mobile field army backed up by local defence units. The army defends the national territory and its military strategy employs the use of the heavily forested terrain and numerous lakes to wear down an aggressor, instead of attempting to hold the attacking army on the frontier.

Finland's defence budget for 2022 equals approximately €5.8 billion. The voluntary overseas service is highly popular and troops serve around the world in UN, NATO, and EU missions. With an arsenal of 700 howitzers, 700 heavy mortars and 100 multiple rocket launchers, Finland has the largest artillery capability in western Europe. Homeland defence willingness against a superior enemy is at 83%, one of the highest rates in Europe. The air force has 62 F/A-18 combat aircraft from 1995, to be replaced with 64 F-35 aircraft in 2026 by the HX Fighter Program.

The Finnish Defence Forces cooperate closely with the Finnish Border Guard. The Finnish Border Guard has its own yearly and long term investment budget.

Civil War
After Finland's declaration of independence on 6 December 1917, the Civic Guards were proclaimed the troops of the government on 25 January 1918 and then Lieutenant General of the Russian Imperial Army Carl Gustaf Emil Mannerheim was appointed as Commander-in-Chief of these forces the next day. Fighting between the White Guards (as the Civic Guards were commonly known) and the Red Guards had already broken out about a week before around Viipuri, in what became known as the Finnish Civil War.

In the war, the Whites were victorious in large part thanks to the leadership of General Mannerheim and the lead by example offensive mindedness of 1,800 German-trained Finnish Jägers, who brought with them German tactical doctrine and military culture. The post-war years were characterized by the Volunteer Campaigns that came to an end in 1920 with the signing of the Treaty of Tartu, which ended the state of war between Finland and Soviet Russia and defined the internationally recognized borders of Finland.

Interwar years
After winning the Civil War, the Finnish peacetime army was organized as three divisions and a brigade by professional German officers. It became the basic structure for the next 20 years. The coast was guarded by former czarist coastal fortifications and ships taken as prizes of war. The Air Force had already been formed in March 1918, but remained a part of the Army and did not become a fully independent fighting force until 1928. The White Guard (Suojeluskunta) played a key role in interwar Finnish defence policy, as they essentially served as local/territorial militia forces, and some had higher readiness and training for quick mobilization.

The new government instituted conscription after the Civil War and also introduced a mobilization system and compulsory refresher courses for reservists. An academy providing basic officer training (Kadettikoulu) was established in 1919, the founding of a General Staff College (Sotakorkeakoulu) followed in 1924, and in 1927 a tactical training school (Taistelukoulu) for company-grade and junior officers and NCOs was set up. The requirement of one year of compulsory service was greater than that imposed by any other Scandinavian country in the 1920s and the 1930s, but political opposition to defense spending left the military badly equipped to resist an attack by the Soviet Union, the only security threat in Finnish eyes.

World War II

When the Soviets invaded in November 1939, the Finns, led by Marshal Mannerheim, defeated the Red Army on numerous occasions, including at the crucial Battle of Suomussalmi. These successes were in large part thanks to the application of motti tactics. Finland successfully defended its independence but ceded 9% of its territory per the Moscow Peace Treaty. During the war, the Finns lost 25,904 men, while the Soviet losses were 167,976 dead.

Finland fought in the Continuation War alongside Germany from 1941 to 1944. Thanks to Nazi-German aid, the army was much better equipped, and the period of conscription was increased to two years, making possible the formation of sixteen infantry divisions. Having initially deployed on the defensive, the Finns took advantage of the weakened Soviet positions as a consequence of Operation Barbarossa, swiftly recovering their lost territories and invading Soviet territory in Karelia, after settling into defensive positions in December 1941. The Soviet offensive of June 1944 undid these Finnish gains and, while failing in its objective of destroying the Finnish army and forcing Finland's unconditional surrender, forced Finland out of the war. The Finns were able to preserve their independence with key defensive victories over the Red Army, the Battle of Tali-Ihantala being very significant.

These conflicts involving Finland had a significant impact on the modern Finnish defense force. While other European militaries have reduced their forces, Finland has maintained a large conscript-based reserve army. As a Swedish report stated: "The reason why the FDF chose to maintain this model while its Nordic neighbors jumped on the expeditionary bandwagon is not hard to see. Sharing a 1340km border with Russia, the need for large ground forces is self-explanatory. Furthermore, memories of World War II – in which over 2 percent of the population perished in two brutal wars with the Soviet Union – are very much alive in Finland". This same aspect has been highlighted even more strongly after the Russian invasion of Ukraine and Finland's decision to join NATO. With quotes like; "After World War II, having thwarted the advance of the mighty Red Army in the Winter War of 1939-40 and then seeking to recapture the territory the Soviets eventually claimed, Finland had to settle for neutrality imposed by Moscow. But to almost everyone's surprise, it succeeded in this degrading task, too, building up armed forces that were highly capable and were energetically supported by civil society—while at the same time managing to maintain dialogue with Moscow.", "Finland still has compulsory military service. Finland would be in a position to mobilize an army of 280,000 soldiers. That's quite a big army in modern Europe,", with similar views being expressed elsewhere as well, often referring to the fact that Finland has kept its conscript-based armed force or other readiness-related units, contrasting with other European countries that now have to re-arm, such as Germany as an example. During the events of 2022 all this has received attention internationally as well.

Cold War
The demobilization and regrouping of the Finnish Defence Forces were carried out in late 1944 under the supervision of the Soviet-dominated Allied Control Commission. Following the Treaty of Paris in 1947, which imposed restrictions on the size and equipment of the armed forces and required disbandment of the Civic Guard, Finland reorganized its defense forces. The fact that the conditions of the peace treaty did not include prohibitions on reserves or mobilization made it possible to contemplate an adequate defense establishment within the prescribed limits. The reorganization resulted in the adoption of the brigade -in place of the division- as the standard formation.

For the first two decades after the Second World War, the Finnish Defence Forces relied largely on obsolete wartime material. Defence spending remained minimal until the early 1960s. During the peak of the Cold War, the Finnish government made a conscious effort to increase defence capability. This resulted in the commissioning of several new weapons systems and the strengthening of the defence of Finnish Lapland by the establishment of new garrisons in the area. From 1968 onwards, the Finnish government adopted the doctrine of territorial defence, which requires the use of large land areas to delay and wear out a potential aggressor. The doctrine was complemented by the concept of total defence which calls for the use of all resources of society for national defence in case of a crisis. From the mid-1960s onwards the Finnish Defence Forces also began to specifically prepare to defeat a strategic strike, the kind which the Soviet Union employed successfully to topple the government of Czechoslovakia in 1968. In an all-out confrontation between the two major blocs, Finnish objective would have been to prevent any military incursions to Finnish territory and thereby keep Finland outside the war.

Recent history
The collapse of the Soviet Union in 1991 did not eliminate the military threat perceived by the government, but the nature of the threat had changed. While the concept of total, territorial defence was not dropped, military planning has moved towards the capability to prevent and frustrate a strategic attack toward the vital regions of the country.

The end of the Cold War also allowed new opportunities which would have previously been seen as breaking Finland's stance of neutrality, such as participation in the War in Afghanistan and the Nordic Battlegroup.

With the change in the European security environment brought by the 2022 Russian invasion of Ukraine, Finnish government officials began voicing increasingly strong support for joining NATO, buttressed by polls showing a rapid increase in Finnish citizens' willingness to join NATO. NATO Secretary General Jens Stoltenberg voiced his support in April 2022 for the inclusion of Finland into the Euro-Atlantic defence alliance and stated that NATO member countries would likely enthusiastically support a Finland bid for membership.

On 11 May 2022, British Prime Minister Boris Johnson and Finnish President Sauli Niinistö signed a new mutual defence agreement "to reinforce their security and fortify northern Europe's defences, in the face of renewed threats." This has helped to address concerns within Finland that the delay between application and acceptance to NATO, during which time Finland would not yet be able to invoke NATO Article 5 and may present an opportunity for a Russian invasion.

On 12 May 2022, President Sauli Niinistö and Prime Minister Sanna Marin issued a joint statement supporting Finland's application for membership of NATO, saying "As a member of NATO, Finland would strengthen the entire defence alliance. Finland must apply for NATO membership without delay." On 17 May 2022, the Parliament of Finland voted overwhelmingly to apply for membership of NATO, with 188 votes in favour of the motion and 8 against. The following morning, the Finnish ambassador to NATO, Klaus Korhonen, formally submitted Finland's application to NATO Secretary General Jens Stoltenberg. Sweden also submitted its application at the same time.

On 29 June 2022, 30 NATO countries extended a formal invitation for Finland along with Sweden to join NATO. Both nations received the status of aspiring members while attending the annual NATO summit in Madrid as guest nations. Finland became a full NATO member on 4 April 2023.

Future
The Defence Forces are currently undergoing key procurement programmes for all the three branches. The Navy is scheduled to get its largest vessels since the WW2-era Väinämöinen class with the new Pohjanmaa class. The Air Force has made the decision to acquire the Lockheed Martin F-35A to replace all McDonnell Douglas F/A-18 Hornet fighter jets for 10€ billion. Meanwhile, the Army is planning to complement the modernized Patria Pasi armoured vehicles with the Finnish Patria 6×6. The standard issue assault rifle RK 62 is also being upgraded to a new variant. A new high altitude air defence missile system was selected in April 2023, Rafael's David's Sling system.

Organization
The Finnish Defence Forces are under the command of the Chief of Defence, who is directly subordinate to the President of the Republic in matters related to the military command. Decisions concerning military orders are made by the President of the Republic in consultation with the Prime Minister and the Minister of Defence.

Apart from the Defence Command (Pääesikunta, Huvudstaben), the military branches are the Finnish Army (Maavoimat, Armén), the Finnish Navy (Merivoimat, Marinen) and the Finnish Air Force (Ilmavoimat, Flygvapnet). The Border Guard (Rajavartiolaitos, Gränsbevakningsväsendet) (including the coast guard) is under the authority of the Ministry of the Interior, but can be incorporated fully or in part into the defence forces when required by defence readiness. All logistical duties of the Defence Forces are carried out by the Defence Forces Logistics Command (Puolustusvoimien logistiikkalaitos), which includes three logistics regiments.

The Army is divided into eight brigade-level units (joukko-osasto). Under the brigades, there were 12 military districts, which were responsible for carrying out the draft, training and crisis-time activation of reservists and for planning and executing territorial defence of their areas. The military districts were disbanded in 2014, as a part of the 800 million euro savings the Finnish Defence Forces had to carry out. Their duties are now carried out by regional offices (aluetoimisto).

The Navy consists of headquarters and four brigade-level units: Coastal Fleet (Rannikkolaivasto), Coastal Brigade (Rannikkoprikaati), Nyland Brigade (Uudenmaan Prikaati, Nylands Brigad), and Naval Academy (Merisotakoulu). The Coastal Fleet includes all the surface combatants of the Navy, while Coastal Brigade and Nyland Brigade train coastal troops.

The Air Force consists of headquarters and four brigade-level units: Satakunta, Lapland and Karelian Air Commands (lennosto) and Air Force Academy (Ilmasotakoulu). They are responsible for securing the integrity of the Finnish airspace during peace and for conducting aerial warfare independently during a crisis.

The military training of the reservists is primarily the duty of the Defence Forces, but it is assisted by the National Defence Training Association of Finland (Maanpuolustuskoulutusyhdistys). This association provides reservists with personal, squad, platoon and company level military training. Most of the 2,000 instructors of the association are volunteers certified by the Defence Forces, but when Defence Forces materiel is used, the training always takes place under the supervision of career military personnel. Annually, the Defence Forces requests the Association to run specialized exercises for some 8,500 personnel placed in reserve units, and an additional 16,500 reservists participate in military courses where the participants are not directly selected by the Defence Forces. The legislation concerning the association will require that the chairman and the majority of the members of its board are chosen by the Finnish Government. The other board members are chosen by NGOs active in the national defence.

The Finnish Defence Forces
Chief of Defence General Janne Jaakkola

Defence Command
Chief of Defence Command Finland Lieutenant General Vesa Virtanen

Deputy Chief of Staff, Logistics and Armaments Lieutenant General Mikko Heiskanen

Deputy Chief of Staff, Strategy Major General Sami Nurmi

Deputy Chief of Staff, Operations Major General Kari Nisula

Deputy Chief of Staff, Personnel Major General Rami Saari

Chief of Planning Brigadier General Tero Ylitalo

Assistant Chief of Staff Operations Commodore Janne Huusko

Defence Command Chief of C5 Brigadier General Jarmo Vähätiitto

Chief of Personnel (J1) Commodore Tuomas Tiilikainen

Chief of Logistics Brigadier General Timo Saarinen

Assistant Chief of Staff, Training (J7) Brigadier General Manu Tuominen

Defence Command Chief of Intelligence Brigadier General Pekka Turunen

Chief Surgeon Commodore Medical Juha-Petri Ruohola

Field Bishop Jukka Pekka Asikainen

Army
Commander of the Finnish Army Lieutenant General Pasi Välimäki

Chief of Staff, Army Major General Jukka Jokinen

Chief of Operations, Army Command Brigadier General Sami-Antti Takamaa

Commander of Karelia Brigade Brigadier General Jyri Raitasalo

Commander of Kainuu Brigade Brigadier General Ari Laaksonen

Commander of Pori Brigade Brigadier General Vesa Valtonen

Navy
Commander of the Finnish Navy Rear Admiral Jori Harju

Chief of Staff, Navy Commodore Jukka Anteroinen

Air Force
Commander of the Finnish Air Force Major General Juha-Pekka Keränen

Chief of Staff, Air Force Brigadier General Timo Herranen

National Defence University
Rector of The National Defence University Major General Mika Kalliomaa

Special Assignments
Military Representative to The EU and NATO Lieutenant General Kim Jäämeri

Defence Forces Logistics Command
Chief of Finnish Defence Forces Logistics Command Major General Jari Mikkonen

Deputy Manager, Logistic Command Brigadier General Engineering Juha-Matti Ylitalo

Conscription

The Finnish defence forces is based on universal male conscription. All men above 18 years of age are liable to serve either six, nine, or 12 months. Some 27,000 conscripts are trained annually. 65% of Finnish men complete their service. The conscripts at first receive basic training, after which they are assigned to various units for special training. Privates who are trained for tasks not requiring special skills serve for six months. In technically demanding tasks the time of service is nine, or in some cases 12 months. Those selected for NCO (non-commissioned officer) or officer training serve 12 months. At the completion of the service, the conscripts receive a reserve military rank of private, lance corporal, corporal, sergeant or second lieutenant, depending on their training and accomplishments. After their military service, the conscripts are placed in reserve until the end of their 50th or 60th living year, depending on their military rank. During their time in reserve, the reservists are liable to participate in military refresher exercises for a total of 40, 75 or 100 days, depending on their military rank. In addition, all reservists are liable for activation in a situation where the military threat against Finland has seriously increased, in full or partial mobilization or in a large-scale disaster or a virulent epidemic. The males who do not belong to the reserve may only be activated in case of full mobilization, and those rank-and-file personnel who have fulfilled 50 years of age only with a specific parliamentary decision.

Military service can be started after turning 18. The service can be delayed due to studies, work or other personal reasons until the 28th birthday, but these reasons do not result in exemptions. In addition to lodging, food, clothes and health care the conscripts receive between 5 and 11.70 euros per day, depending on the time they have served. The state also pays for any rental and electricity bills the conscripts incur during their service. If the conscripts have families, they are entitled to benefits as well. It is illegal to fire an employee due to military service or due to a refresher exercise or activation. Voluntary females in military service receive a small additional benefit, because they are expected to provide their own underwear and other personal items.

The military service consists of lessons, practical training, various cleaning and maintenance duties and field exercises. Most weekends conscripts can leave the barracks on Friday and are expected to return by midnight on Sunday. A small force of conscripts are kept in readiness on weekends to aid civil agencies in various types of emergency situations, to guard the premises and to maintain defence in case of a sudden military emergency. Field exercises can go on regardless of the time of day or week.

The training of conscripts is based on joukkotuotanto-principle (lit. English troop production). In this system, 80% of the conscripts are trained to fulfill a specific role in a specific wartime military unit. Each brigade-level unit is responsible for producing specified reserve units from the conscripts it has been allocated. As the reservists are discharged, they receive a specific wartime placement in the unit with which they have trained during their conscription. As the conscripts age, their unit is given new, different tasks and materiel. Typically, reservists are placed for the first five years in first-line units, then moved to military formations with less demanding tasks, while the reservists unable to serve in the unit are substituted with reservists from the reserve without specific placement. In refresher exercises, the unit is then given new training for these duties, if the defence funding permits this.

The inhabitants of the demilitarized Åland islands are exempt from military service. By the Conscription act of 1950, they are however required to serve a time at a local institution, like the coast guard instead. However, until such service has been arranged, they are freed from service obligation. The non-military service of Åland islands has not been arranged since the introduction of the act, and there are no plans to institute it. The inhabitants of Åland islands can also volunteer for military service on the mainland. Jehovah's Witnesses were exempt until February 2019. It is also possible to serve either weapon-free military service of 255 or 347 days or undergo a 12-month-long non-military service. Finnish law requires that men who do not want to serve the defense of the country in any capacity (so-called total objectors) be sentenced to a prison term of 173 days. As of 1995, women were permitted to serve on a voluntary basis and pursue careers as officers. In conscription, women have consideration time of 30 days, during which they have the choice to halt their service without any other specific reason. After the said 30 days, all the same laws and jurisdictions apply to them as to men. Unlike in many other countries, women are allowed to serve in all combat arms including front-line infantry and special forces.

Military ranks

The Finnish military ranks follow the Western usage in the officer ranks. As a Finnish peculiarity, the rank of lieutenant has three grades: 2nd lieutenant, lieutenant and senior lieutenant. The 2nd lieutenant is a reserve officer rank, active commissioned officers beginning their service as lieutenants.

The basic structure of the NCO ranks is a variant of the German rank structure, but the rank system has some peculiarities due to different personnel groups. The duties carried out by NCOs in most Western armed forces are carried out by In a case of war, most of the NCO duties would be carried out by reserve NCOs who have received their training during conscription.
 * warrant officers (opistoupseeri) serving in the ranks from lieutenant to captain. This personnel group is being phased out.
 * career NCOs serving in the ranks from enlistee (sotilasammattihenkilö), sergeant, staff sergeant, sergeant first class (gunnery sergeant is equivalent), master sergeant and sergeant major (sotilasmestari). Career NCO's with rank of sergeant have a sword symbol in their insignia to distinguish them from conscript sergeants.
 * contractual military personnel (sopimussotilas) serving in the ranks of corporal, sergeant and 2nd lieutenant (reserve officers)
 * conscripts in the ranks of corporal, officer student, sergeant and officer candidate.

The rank and file of the Finnish Defence Forces is composed of conscripts serving in the ranks of private, lance corporal and NCO student.

Equipment
Finnish Defence Forces Materiel and equipment photos.

Finland does not have attack helicopters or submarines. Legislation forbids nuclear weapons entirely.

In early March 2012 Finland decided to purchase advanced Joint Air-to-Surface Standoff Missiles (AGM-158 JASSM) from the United States. Other non-USA operators for the JASSM are Australia, Poland and South Korea. The deal also included other sophisticated bombs like glide-bombs AGM-154 Joint Standoff Weapon and JDAM (Joint Direct Attack Munition).

Finland has updated its M270 Multiple Launch Rocket System (MLRS. In Finnish 298 RSRAKH 06) to be able to fire the ATACMS tactical ballistic missile).

Uniform
The main field uniform is the M05 uniform, introduced in 2005, which is green camouflage uniform used by the army. M05 has cold weather and snow camouflage variants, which are gray-green and white with green flecks, respectively. Older green camouflage uniforms are M91 and M62. The M83 light service uniform remains in use as a service uniform for permanent personnel such as officers and as a dress uniform, but is not commonly issued to troops. This is gray for army, blue for the air force and dark blue for the navy. The navy has separate naval uniforms, while the air force uses army-pattern uniforms. There are also four separate full dress uniforms depending on the dress code.

Peacekeeping operations

Finland has taken part in peacekeeping operations since 1956 (the number of Finnish peacekeepers who have served since 1956 amounts to 43,000). In 2003 over a thousand Finnish peacekeepers were involved in peacekeeping operations, including UN and NATO led missions. According to the Finnish law the maximum simultaneous strength of the peacekeeping forces is limited to 2,000 soldiers.

Since 1956, 39 Finnish soldiers have died while serving in peacekeeping operations.

Since 1996 the Pori Brigade has trained parts of the Finnish Rapid Deployment Force (FRDF), which can take part in international crisis management/peacekeeping operations at short notice. The Nyland/Uusimaa Brigade has started training the Amphibious Task Unit (ATU) in recent years, a joint Swedish-Finnish international task unit.

Since 2006, Finland has participated in the formation of European Union Battlegroups. Finland participated in two European Union Battlegroups in 2011.

International operations Finland is participating in by deploying military units (personnel strength in parentheses):
 * Operation Inherent Resolve in Kurdistan Region (50)
 * UNIFIL in Lebanon (350)

Other international operations Finland is participating in with staff personnel, military observers and similar (personnel strength in parentheses):
 * EUFOR Althea in Bosnia and Herzegovina (8)
 * EUNAVFOR/OPERATION ATALANTA in Gulf of Aden Somalian coast (6)
 * European Union Training Mission Somalia (6)
 * European Union Training Mission in Mali (11)
 * EUNAVFOR MED - OPERATION SOPHIA (8)
 * KFOR in Kosovo (20)
 * UNTSO (19)
 * UNMOGIP in India and Pakistan (6)
 * MINUSMA in Mali (5)

Total defence
The Finnish military doctrine is based on the concept of total defence. The term total means that all sectors of the government and economy are involved in the defence planning. In principle, each ministry has the responsibility for planning its operations during a crisis. There are no special emergency authorities, such as the U.S. Federal Emergency Management Agency (FEMA) or Russian Ministry of Emergency Situations. Instead, each authority regularly trains for crises and has been allocated a combination of normal and emergency powers it needs to keep functioning in any conceivable situation. In a war, all resources of society may be diverted to ensure the survival of the nation. The legal basis for such measures is found in the Readiness Act and in the State of Defence Act, which would come into force through a presidential decision verified by parliament in the case of a crisis.

The main objective of the doctrine is to establish and maintain a military force capable of deterring any potential aggressor from using Finnish territory or applying military pressure against Finland. To accomplish this, the defence is organised on the doctrine of territorial defence. The stated main principles of the territorial defence doctrine are
 * general conscription,
 * territorial defence,
 * training of conscripts for wartime units,
 * dispersed mobilisation, and
 * flexible readiness in responding to military threats of various degree.

The defence planning is organised to counteract three threat situations:
 * A regional crisis that may have effects on Finland.
 * Political, economic and military pressure, which may include a threat of using military force and its restricted use.
 * Use of military force in the form of a strategic strike or an attack beginning with a strategic strike aimed at seizing territory.

In all cases, the national objective is to keep the vital areas, especially the Helsinki metropolitan area in Finnish possession. In other areas, the size of the country is used to delay and wear down the invader, until the enemy may be defeated in an area of Finnish choosing. The Army carries most of the responsibility for this task.

The key wartime army units in 2015 are:
 * 3 Readiness brigades
 * 2 Jaeger brigades
 * 2 mechanised battle groups
 * 6 Infantry brigades (regional)
 * 14 independent battalions / battlegroups (regional)
 * 28 Territorial Forces (Finland) / company sized (regional)
 * Helicopter battalion
 * Special Jaeger battalion

The total number of territorial and regional units is undisclosed. The army units are mostly composed of reservists, the career soldiers manning the command and specialty positions.

The role of the Navy is to repel all attacks carried out against Finnish coasts and to safeguard the territorial integrity during peacetime and the "gray" phase of the conflict. The maritime defence relies on combined use of coastal artillery, missile systems and naval mines to wear down the attacker. The Air Force is used to deny the invader the air superiority and to protect most important troops and objects of national importance in conjunction with the ground-based air defence. As the readiness of the Air Force and the Navy is high even during the peacetime, the career personnel have a much more visible role in the wartime duties of these defence branches.

The Border Guard has the responsibility for border security in all situations. During a war, it will contribute to the national defence partially integrated into the army, its total mobilized strength being some 11,600 troops. One of the projected uses for the Border Guard is guerrilla warfare in areas temporarily occupied by enemy.

Key wartime units
The army is organised into operative forces, which consist of approximately 61,000 persons, and territorial forces, which consist of 176,000 persons. The following list is the wartime organisation of the Finnish army from January 2008.

Army
Territorial forces:
 * 3 readiness brigades
 * 2 Jaeger brigades
 * 2 Mechanized battlegroups
 * 1 Helicopter battalion
 * 1 Special jaeger battalion
 * 1 Anti-aircraft missile and anti-aircraft unit
 * 6 infantry brigades (regional)
 * 14 independent battalions / battlegroups (regional)
 * 28 Territorial Forces (Finland) / company sized (regional)

Navy

 * 2 Battle groups (fleet)
 * 3 Battle groups (coastal)
 * Battle group (coastal Jaeger)

Air Force

 * 3 fighter squadrons
 * 4 Main operating bases

title: Finnish Defence Forces