Finnish business group proposes cutting public holidays to boost defense spending
Moving Ascension Day, Epiphany to take place on weekends would increase GDP some $1.28B, argues Federation of Finnish Enterprises
ATHENS
A major Finnish business lobby group has proposed cutting public holidays to fund increases in defense spending, local media reported on Tuesday.
The Federation of Finnish Enterprises argued that moving Ascension Day and Epiphany to take place on weekends would raise the country’s gross domestic product (GDP) by 0.2% per holiday, or around €1.1 billion ($1.28 billion) annually, which could be used to boost defense spending, reported public broadcaster YLE.
"To overcome the major challenges ahead, related both to strengthening defense and caring for an ageing population, we need to work more," said Mikael Pentikainen, the federation’s CEO.
"We believe this is a fair way to implement the change and would slightly ease Finland’s situation,” he said.
Pentikainen told how a few years ago neighboring Denmark cut a weekday holiday owing to rising defense costs.
But Jarkko Eloranta, head of the Central Organization of Finnish Trade Unions (SAK), rejected the proposal to cut weekday holidays.
While acknowledging the need to address rising defense spending, Eloranta said the holiday suggestion is the wrong approach.
U.S. President Donald Trump, whose country spends about 3.5% of its GDP on defense, has long criticized European allies for not sharing the burden more equitably, as it accounts for roughly two-thirds of NATO’s total defense spending.
The imbalance has fueled debate, with Trump previously threatening to withdraw U.S. support if allies fail to increase contributions.
The allies reportedly agreed on Sunday to reach a 5% threshold by 2035.
Finland joined NATO in 2023, spurred by the Russia-Ukraine war. It has the longest border with Russia of any NATO member state.
