Finance Minister Riikka Purra (Finns) told news outlet MTV that she expects Nato's defence spending target to rise to three or even 3.5 percent of member states' GDP.

"I believe it will fall within that range," Purra said.

Nato's current spending guideline is set at two percent of GDP.

Purra said the government must decide on increasing defence spending by mid-April, with Nato's target being one factor among several.

"Decisions will prioritise capabilities and be based on threat and needs assessments. The next focus will be investments in the Army. Of course, we will consider Nato's percentage, but details are not yet available."

Finland's annual defence budget currently stands at approximately 6.3 billion euros, or around 2.4 percent of GDP.