FINNISH TRADE UNIONS AUTUMN SEMINAR IN KILJAVA, AUGUST 18,

1994

Exactly a hundred years ago, on 18 August, 1894, Finland's

first national trade union was founded in Helsinki, that of Finnish Print workers.

Finland was then living through a time of profound change.

Economically and culturally, we were starting to become

independent. Workers and tenant farmers were demanding

their rights. Finns were showing that they wanted to

decide their own future.

Today, a hundred years later, Finland is again in profound

change, and facing a new era. The European continent is

free from the fetters of the Cold War. As a result, it is

possible to promote rational use of economic resources and

to increase cooperation between nations and contacts

between people.

A hundred years ago, the rapid growth of the global movement of capital and people was dramatically altering the economic order and relations between states. However,

these promising beginnings were cut off by the First World

War and the protectionism, great depression and military

rivalry that followed it.

Since the Second World War, efforts have been made to build

a new economic order through various agreements, but no

consistent system of global economics has evolved.

The single European market is so far the most ambitious attemptto create a common economic area in our continent. There are also great expectations about the newly founded World Trade Organization (WTO).

European cooperation through the European Union is

necessary. If we cannot unite as nations, we will be left

as nation states to compete with the United States and the

rising economic giants of Asia. We will in that case be

condemned to mass unemployment and continuing recession

- there is simply no way out. Small states, in

particular, would find themselves at a loss amid unbridled

competition with the major nations.

Finland, too, faces a choice. Which side do we want to be

on? What values do we want to promote? How do we want

Europe to develop in the future? What kind of Finland do we

want to live in in the years to come?

It must be stated quite clearly that membership of

the European Union will not solve a single one of Finland's

problems as such, Not joining the Union, however, would certainly result in uncertainty and other problems.

As a nation, we must now demonstrate the best of our

inherent qualities: unanimity, persistence and ingenuity.

Using these resources, we cannot fail to succeed

ultimately.

European development will not be free from problems or

difficulties. The continent is in a stage of profound

adjustment, a transition reflected in the persistent

existence of mass unemployment.

Jacques Delors, president of the European Commission, spoke

on this subject at the trade union labour market seminar in

Pori at the end of July. He said that building Europe

means creating a balanced entity, not just a large free

trade area. "Europe will have to face the double challenge

of competitiveness and unemployment. With unemployment

currently at over 10 per cent, society will be divided," he argued,"and its parts will no longer move at the same pace. We must not let ourselves get used to this situation."

The idea of European society actually involves an entity of

three factors: better use of economic resources,

cooperation and solidarity. The first goal, competition,

has already been roughly attained through common rules.

Nine million new jobs have been created, growth is

faster, investment has increased and consumers have

benefitted. Contrary to a frequent misconception,

Europe has not become a fortress barricaded against the

rest of the world.

Economic disorder creates all kinds of problems.

Europe's high unemployment rate derives from the fact that

no effective rules have as yet been devised for the economy

of the continent and the whole world. Without deepening

cooperation between the states of Europe and the

integration of their economies, we would not be able to

fight mass unemployment successfully in the future, either.

There is no real, better alternative to European

integration. Finland must participate in it at the core, the European Union, now while the window of opportunity is open.

Developments in the global economy are shaking up the

international order, both economic and political. Besides the United States, Japan and the European Union,

Southeast and East Asia are becoming important economic

areas. Eventually, the Russian economy is bound to

recover. There will be competition between these economic

power centres, and controlling it will be the greatest

security challenge facing international politics as we move into the 21st century.

An EU summit meeting was held at Corfu at midsummer, at

which Finland's accession treaty was also signed. Russia's

changing and more prominent role in the international

community was visible at this meeting, which it

had been invited to attend as a guest. The themes dealt

with included - besides EU enlargement, topical international issues and election of a new president, - growth, competitiveness and employment, all crucial matters for the Finnish economy. The summit meeting sought means of promoting employment through training. It also strove to find ways of cutting labour costs not related to pay, and reforms in the arrangement of working hours and how work is organized. There was considerable discussion of youth employment programmes and action to exploit the employment potential of small and medium-sized enterprises.

EU membership will not solve Finland's unemployment

problem, but it will offer us new ways of overcoming the

problem. The real effort must still be made by the Finns

themselves.

The problem is not solved by cheap labour. We have to

improve our competitive standing on the basis of the Nordic model. This produces highly trained citizens, healthy in mind and body, who are a production factor that will increase our competitiveness.

Finland now has to develop its own economic model which has

eradicated all its structural weaknesses. Our production

base must be even more diversified. The self-employed

entrepreneur and the small and medium-sized business will

play a key role here. We must eliminate all unnecessary

obstacles to job creation.

The European Union does not specify how and when we can

employ people, or how much we can pay, or any other working

conditions. The standard of our social security will

continue to be entirely up to us. Sensible decisions in

the next few years, based on Finland's own economic

resources, together with the political will this calls for,

are what will ultimately determine the level of the

everyday welfare and security enjoyed by our citizens.

In the debate on EU membership, people often ask just what

a small country like Finland can possibly offer the

European Union.

As a member, we would both receive and give. We want to

learn from countries in the Union, but our experience will

also enrich it. We believe in a Nordic model which looks

after the basic needs of citizens, education, health care

and social security, in bad times as in good. In these

areas we are one of the world's leaders. The European

Union expects to be influenced by the Nordic countries in

this respect.

We are also forerunners in women's rights, though much

remains to be done. In Finland and the other Nordic

countries, questions of equality have been handled

much better than in most of the Union's present Member

States.

I noticed that Tuulikki Kannisto of the Central Organizationof Finnish Trade Unions spoke at the same Pori seminar on the membership issue. She said:

"We need to see that the European Union can offer us ways

of influencing the inner unity of our societies and of

increasing it. This is the main issue in the cooperation

between labour market organizations in the European Union,

and that is why the trade union movement in Finland is

preparing to play an active role."

In Finland as elsewhere, the trade union movement has a

vital role to play in seeking means to conquer mass

unemployment. It has a crucial role to play in

seeking solutions that will preserve the hard core of the

welfare state. The Finnish labour market negotiating

system has demonstrated its effectiveness and flexibility

many times. Many European countries have much to learn

from the moderate Finnish way of doing things.

There has been criticism within the trade union movement of

what has been perceived as the excessive prominence of

farming interests in the accession negotiations. However,

we must remember that it is the consumers who will first

benefit from membership. This is because we change

over to EU farm prices, producer prices will fall, and as of the beginning of January so will food prices. It is the

Finnish agricultural producer who will have to adjust.

This is why the transition has to be buffered both with community and national support measures. Over the long term, too, we will need Union support, as well as reasonable national measures topreserve a viable agriculture and rural life in Finland. Agricultural subsidies will help to maintain population all over the country and promote preservation of the cultured landscape, which the European Union considers particularly important. We thus need national subsidies during the transitional stage in particular, but to a reasonable degree later, too.

The European Union is an instrument of cooperation between

states. It is not a federation of states, and definitely not a new great power. It is a new kind of consortium

of states which is constantly developing. It is

not a finalized creation, but a community that is still

unfinished in many respects. Through enlargement the

EU will ensure that the European way of life evolves in a

more human direction. This will prevent protectionism,

isolation and military rivalry. Integration will thus also

constitute a new kind of security guarantee, and EU

membership will provide us with this at once.

This summer a Finnish veteran politician said, "I think it is a good thing for European leaders and their representatives to meet often and daily in peace and cooperation, rather than order their people to fight each other, like they used to do." It was Aarne Saarinen speaking, and he went on: "For the first time in its history, Finland now has the chance to share in and influence European development and to ensure lasting peace, and in a way that has never been experienced before. Earlier, it was always some great power, such as France, and later Germany, that wanted to integrate Europe, by force and relying on military means. Now this can be done voluntarily and democratically. That's why it is impossible to understand adamant opposition to EU membership."

The EU's significance as a guarantor of security in our

continent cannot be described better in a more concise manner. Military cooperation does not have to be alliance in the face of a known enemy. The European Union is an evolving instrument for the kind of cooperation that will strengthen our common security.

Membership does not require us to make any new defence

policy choices. We shall continue to take care ourselves of our own defence. Membership does require readiness for comprehensive enhancement of security, and for identification and assessment of options. Finnish foreign policy aims, and will continue to aim, at promoting extensive cooperation in Europe. We are ready to commit ourselves to this. It is by promoting the idea of an integrated Europe that we will best prevent any new division of our continent.

During the summer, the presidents of Russia and Estonia

reached mutual understanding on the withdrawal of Russian

troops from Estonia by the end of this month. It was not

an easy agreement to reach. The burden of history was

great. President Meri and President Yeltsin deserve all

our appreciation. Implementing the agreements will further

stabilize the security situation in northern Europe. At

the same time, it will also create better conditions for

economic and political cooperation.

When the Finnish print workers' union was founded a hundred

years ago, a nation and its people were coming of age, and

its members were becoming full members of society. A

hundred years later, independent Finland wishes to

reinforce its standing as a European nation. Proud of its

own traditions and way of life, it is ready to take its

place as an equal in an integrating Europe. In making

their decision, the Finnish people are aware of the

historic importance of their decision.