Helsinki, March 26, 2026 – The Europe Today: Finland’s government has directed the Ministry of Finance to prepare contingency measures to address the potential economic fallout of the ongoing Middle East conflict, as rising energy prices begin to impact households across the country.
Prime Minister Petteri Orpo said the ministry has been tasked with assessing policy options should the crisis deepen or persist over time. Speaking after a government meeting, he noted that the conflict has already pushed up fuel prices and interest rates, with further increases expected in heating, transportation, and food costs.
“We cannot make rushed decisions,” Orpo stated. “Every euro must be used in the best possible way.”
The government has come under increasing pressure to provide relief to households as living costs climb. Global oil prices have surged following attacks on Iran and disruptions to shipping routes through the Strait of Hormuz, while borrowing costs have also risen.
Orpo confirmed that the government has received updates from the foreign ministry and the National Emergency Supply Agency regarding the evolving situation and its possible implications for Finland’s economy.
“If the crisis continues and deepens, it will be reflected in heating, transport, and food prices,” he warned. “These effects will place a heavy burden on households and the broader economy.”
Finance Minister Riikka Purra emphasized that the duration of the conflict will be a key factor in determining its economic impact on Finland and Europe. She cautioned that the country’s public finances are already under strain.
“We have a very tight situation in public finances,” Purra said. “We do not have buffers for unexpected crises or war-related shocks.”
She further noted that Finland has less economic flexibility compared to some neighboring countries, particularly Sweden.
While no specific measures have yet been approved, proposals under discussion include potential reductions in fuel taxes and adjustments to biofuel distribution requirements. Sweden has already moved to introduce temporary cuts in petrol and diesel taxes, along with increased electricity subsidies to ease the burden on consumers.
The issue has gained urgency in Finland following calls from political leaders earlier this week for immediate action on fuel prices. However, Orpo stressed that decisions will be guided by how the situation evolves.
The government reviewed the economic outlook and the impact of the Iran conflict during its recent budget planning session, with further policy decisions expected as assessments continue.
Meanwhile, the International Energy Agency has warned that the conflict could trigger a severe global energy crisis, adding further pressure on European economies.
