The Finnish Defence Reform. The Chief of Defence Command Vice Admiral Juha Rannikko

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1 The Finnish Defence Reform

2 Autumn 2010 Defence Forces Reform - Timeline Identifying the need for change WHY Spring 2011 Preliminary surveys ALTER- NATIVES, COMPARISON Autumn 2011 Basic idea OBJECTIVES SELECTION OF MEASURES WHAT January 2012 Concept WHAT WILL BE DONE Spring 2012 Details WHAT WILL BE DONE Summer - Autumn 2012 HOW Implementation HOW IMPLEMEN- TATION IS REALISED Tasks of the Finnish Defence Forces will remain: 1. National Defence 2. Support to other authorities 3. International Crisis management

3 Wartime Defence Forces 2012 ~ Army Navy Air Force Manoeuvre forces Territorial forces Readiness brigades 2 Jaeger brigades 2 Mechanized BGs 2 Motorized BGs 1 Helicopter battalion 1 Special forces battalion Air Defence units Combat Support units Combat Service Support units 6 Infantry brigades 24 battalions/bgs Territorial defence units Combat Support units 2 FAC squadrons 3 MCM squadrons 6 Minelayers 1 Coastal ranger battalion 2 Coastal missile companies 4 SSM batteries Maritime Surveillance units Coastal Artillery units 3+1 fighter squadrons C2 centers Air Surveillance units Readiness bases Supporting units

4 Budget and funding 2012 DEFENCE total MoD Value added tax Defence Forces M 23 M 331 M M DEFENCE FORCES Materiel Personnel Operating M 733 M 733 M 723 M +MFA (CMO) 50 M - Training etc Facilities Crisis management +MFA (CMO) 243 M 63 M 50 M MoD 1% Value added tax 12% Crisis management operations 3% Operating 29% Materiel 29% Defence Forces 87% Facilities 10% Personnel 29%

5 WHY?

6 The background to the current situation IT costs Field training days Infrastructure (facilities) Flight hours Salaries Sailing days International activities Rehearsals (reservists)

7 Funding prospects Budget cuts total 600 M 32% Materiel 25% Diminishing 29% Operating 27% 9% Infrastructure 12% Growing 30% Salaries 36% Crisis management costs not included

8 Age groups get smaller - The number of men who are of call-up age will diminish until the 2020s - The FDF are taking only those who are fit for military service - The amount of dropouts is growing - The FDF already have 1500 to 2000 extra training places - By 2018 there will be about 4500 extra places without the reform

9 Defence Forces Reform - Reasons and Objective The need for reform is caused by: Smaller age groups Defence materiel becoming obsolete and more expensive Other rises in costs There is not enough money to maintain a Defence Forces of the current size. Requirements The statutory tasks of the Defence Forces remain The entire country is defended General conscription Military non-alliance Simultaneous significant decrease in funding The objective is: 1. Ensuring Finland's military defence capability 2. Lasting cost savings Real-estate expenditure Personnel costs Materiel procurement 3. Bringing the size and activities of the Defence Forces into balance with funding

10 WHAT?

11 REFORM OPTION MATRIX Options Strength National Defence Support to the other Authorities Crisis Management Budget Feasibility Option 1 Current Operating Costs Option 2 Optimized Option 3 Maneuver Partly Fulfilled Material costs Option 4 High Tech Not Fulfilled Volume/ Reaction time Staff and material costs Option 5 Professional Not Fulfilled Volume/ Reaction time Staff and material costs

12 Lasting Savings Brought by the Reform Measure and effect at an annual level Millions Brigade-level units, establishments and bases will be closed down and combined Logistics will be reorganised. Functions will be organised to form an entity that covers the entire Defence Forces and overlapping capabilities will be removed Support services will be reorganised The command structure will be made lower Effect of structural measures in total In addition, the materiel investments of the FDF will be reduced about 130 to 150 M by 2015.

13 HOW?

14 The Defence Forces Basis for Continued Planning DEFENCE COMMAND COMMANDER OF THE DEFENCE FORCES Defence Forces Intelligence Agency ARMY NAVY AIR FORCE Defence Forces Military Intelligence Centre Finnish Intelligence Research Establishment Command Headquarters Reform of the command structure National Defence University Defence Forces C4 Agency Brigade-level units Brigade-level units Brigade-level units Defence Forces International Centre Defence Forces Research Institute Defence Forces Technical Research Centre Brigade-level unit Research Institute Brigade-level unit Defence Forces Logistics Establishment Centre of Military Medicine Defence Forces' Service Centre Regional Offices Regional Office Materiel Command Logistics Regiment Materiel Command Materiel Command To be closed down, real-estate and areas will be relinquished Reorganisation as part of an entity comprising the entire Defence Forces/equiv.

15 The Army Basis for Continued Planning Army ARMY COMMAND FINLAND 8 BRIGADE-LEVEL UNITS 12 REGIONAL OFFICES 4 MILITARY BANDS Army Command, Mikkeli Guard Jaeger Regiment, Helsinki - Regional Office, Helsinki Pori Brigade, Säkylä-Niinisalo - Regional Office, Vaasa - Regional Office, Turku Armoured Brigade, Hattula-Riihimäki - Regional Office, Tampere - Regional Office, Jyväskylä - Regional Office, Lahti Utti Jaeger Regiment, Kouvola (Utti) Army Academy, Lappeenranta Lapland Military Band, Rovaniemi Army Band, Lappeenranta Guards Band, Helsinki Conscript Band of the Defence Forces, Hattula Karelia Brigade, Kouvola (Vekaranjärvi) - Regional Office, Kouvola - Regional Office, Mikkeli Kainuu Brigade, Kajaani - Regional Office, Oulu - Regional Office, Kuopio - Regional Office, Joensuu Jaeger Brigade, Sodankylä Rovaniemi - Regional Office, Rovaniemi Niinisalo Säkylä Vaasa Sodankylä Rovaniemi Oulu Kajaani Kuopio Joensuu Jyväskylä Tampere Mikkeli Hämeenlinna Kouvola Lahti Lappeenranta Riihimäki Hamina Turku Helsinki

16 Navy and Air Force Basis for Continued Planning Air Force AIR FORCE COMMAND 4 BRIGADE-LEVEL UNITS MILITARY BAND Air Force Command, Jyväskylä (Tikkakoski) Fighter Brigade-level unit, Rovaniemi Fighter Brigade-level unit, Siilinjärvi (Rissala) Transportation and Research Brigade-level unit, Pirkkala Air Force Academy, Jyväskylä (Tikkakoski) Air Force Band, Jyväskylä (Tikkakoski) Rovaniemi Navy NAVY COMMAND FINLAND 4 BRIGADE-LEVEL UNITS MILITARY BAND Navy Command, Turku Naval Brigade-level unit, Turku (Pansio) Coastal Brigade-level unit, Upinniemi Uusimaa Brigade, Raasepori Naval Academy, Helsinki (Suomenlinna) Navy Band, Turku Turku Pirkkala Tikkakoski Siilinjärvi Raasepori Helsinki Upinniemi

17 The Finnish Defence Forces DEFENCE FORCES 2015 ~ M Annual Budget ~ M ~ Wartime strength ~ ~ * Peace Time Personnel ~ /y Age group to be trained /y /y Trained reservists /y 4 Command Levels 3 51, of which Administrative Units ~ 30, of which 25 Brigade-level (equiv.) units 16 * 1 Jan ~ Maintenance of defence capability ensured Level of activities restored Conscript training ensured Activities, costs and funding in balance Corresponds with a decreasing wartime strength Lasting structural solution Effective entities Even work distribution

18 Joint Capability Development milestones AIR and MARITIME DEFENCE - GBAD - F-18 MLU - MCM vessels LAND DEFENCE - Territorial Forces LAND DEFENCE - Manoeuvre Forces MARITIME DEFENCE - Multipurpose vessels AIR DEFENCE - Hornet successor - Flight Training Integrated C4 ISTAR Joint Effects Logistics

19 Thank you

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