Finland's F-35 Fighter Jet Costs Rise by Over 400 Million Euros

Finland's largest-ever military purchase is getting more expensive. The cost of the country's 64 F-35 fighter jets is now expected to rise by more than 400 million euros.

The extra cost comes from delays and rising prices for the Block 4 upgrade package. This upgrade was supposed to give the jets their full set of features. However, the program is behind schedule and over budget.

A Problem with the Upgrade

The Block 4 upgrade was originally planned to be finished by 2026. Now, it is not expected to be ready until 2031 at the earliest. The cost of the program in the United States has grown from 9 billion euros to 14 billion euros—an increase of 55 percent.

Because of these delays, Finland will receive its F-35 jets with fewer capabilities than originally agreed. The Finnish Air Force will have to carry out major upgrades at its own expense. "Finland's new F-35A Lightning II fighters will be delivered with fewer capabilities than originally agreed in the country's procurement contract, and the Finnish Air Force will have to carry out significant modernizations at its own expense," said Henrik Elo, head of the Finnish F-35 program.

What Finland Will Pay

Finland ordered 64 F-35 jets in 2021. The total cost of the deal was about 10 billion euros. This includes the aircraft, weapons, training, and maintenance up to 2030.

For next year, Finland has budgeted nearly 400 million euros in extra costs for the F-35 project. This is on top of the 1 billion euros already planned. About 271 million euros of this is due to currency changes, and 100 million euros is for index adjustments in the contract.

Other Cost Increases

Currency exchange rates have also made the jets more expensive. When the euro is weak against the US dollar, Finland has to pay more. These currency-related costs have been estimated at around 850 million euros by 2030.

Finland also underestimated maintenance costs. While Finland planned for 250 million euros per year, the Netherlands—which bought only 46 jets—estimated its costs at 570 million euros per year.

A Growing Concern

The rising costs have caused debate in Finland. Some critics say the F-35 purchase was a mistake. They point out that other countries, including Canada, Switzerland, Portugal, and Spain, are now reconsidering their own F-35 orders.

The jets are Finland's most expensive procurement ever. As upgrades and maintenance continue over the coming years, the final price tag is likely to grow even higher.