Finland’s Prime Minister Sanna Marin has spoken about the experience of leading her country into Nato, likening the process to a dance.
Days before she leaves office, Ms Marin recalled the difficult situation her country faced after Russia invaded Ukraine, prompting unprecedented security discussions in Helsinki.
She compared the scenario her administration was thrust into to the “chaotic” period at the beginning of the Covid-19 pandemic, when governments around the world did not have a roadmap to navigate the crisis.
“We didn’t have a manual [on] how to have this Nato discussion within Finland,” she said, recalling how politicians “had to make decisions very fast”.
‘Dancing towards Nato’
Recalling the mood in Finland during the “Nato spring” – when conversations centred on defence, security and potential membership of the alliance – Ms Marin said people were hesitant to say out loud what they saw coming.
“I think everybody in the room knew where we are heading and where we’re going but nobody said it out loud, like ‘we should join Nato now’.
“It’s a dance. You have to make sure that everybody is on board … and make that process very fast but you cannot rush it.
You have to make sure that everybody's on board, because you need that unity.”
She made the comments during a discussion at London Tech Week on Wednesday.
A video of Ms Marin dancing went viral last year, sparking criticism from opposition MPs.
Looking back to February 2022, she said: “It was so hard wake up very early in the morning to face the fact that Europe is in war once again.”
Given Finland’s boundary with Russia, and the historic animosity between the two nations, Finns were eager to discuss security matters despite there being “no consensus” for Nato membership up to that point.
“It meant for Finland many decisions concerning security,” she said. “We have an over 1,300km border with Russia and they attacked another neighbouring country so of course we have to make decisions as well.”
After a war broke out on the continent “it was evident” that Finland’s population of 5.5 million were moving closer to the idea of becoming part of the transatlantic alliance, she said.
Her country’s eagerness to join Nato is “to do with the fact that we always want to make sure that our nation and our people are secure,” she said.
“This is in Finnish DNA because already we have had wars with Russia,” she added.
She expressed hope that Sweden would become a member of Nato at the alliance’s summit in Vilnius in July, saying it would “be very important” for security in northern Europe.
Finland became an official member of Nato in April.
Ms Marin became the world’s youngest serving state leader when she was elected Prime Minister in 2019 at the age of 34.
She conceded defeat in elections in April after being overtaken by two conservative opponents in a three-way race for control of parliament.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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