Finnish Army to Face Defence Cuts

13 January 2011 (Last Updated January 13th, 2011 18:30)

The Finnish Army could face reductions as the defence ministry plans hundreds of millions of euros in spending cuts, permanent secretary at the Ministry of Defence Arto Räty said. "It largely depends on the budget framework during the term in office of the next cabinet, but in any ca

The Finnish Army could face reductions as the defence ministry plans hundreds of millions of euros in spending cuts, permanent secretary at the Ministry of Defence Arto Räty said.

"It largely depends on the budget framework during the term in office of the next cabinet, but in any case we're speaking of hundreds of millions of euros," Räty added.

The structural changes include either merging or eliminating some units, however, Defence Committee chairman Juha Korkeaoja said closing garrisons or downsizing personnel were not being considered.

Korkeaoja also said the defence forces could reopen materials purchase contracts to new bidding and may reexamine acquisition programmes.

The defence forces are expected to be in a new formation by the start of 2016, according to the Finnish Broadcasting Company.