Translation

New Year's speech by the President of the Republic, January

1, 1995

Citizens,

Fifty years ago Finland made the transition from war to

peace. During the past year we have often recalled those

hard times; we have honoured our veterans, thanks to whom we

have been able to go about the work of peace in a free and

independent Finland.

We Finns must keep our country free and independent, and

ensure that all citizens can look to the future with

confidence.

Change is characteristic of the time, and we must be able to

manage this change, both nationally and internationally.

By means of a referendum, Finns indicated the road they wish

their country to travel in the process of change in Europe.

Their decision was preceded by a lively public debate in

which the issues of agriculture and security received

priority.

Membership of the European Union will clarify our

international position. My state visits have convinced me

that our views are respected and that expectations of us as

an EU member are rising.

Although many opposed EU membership, our attention has

turned rapidly to the future. This is encouraging. We must

now demonstrate in practice that EU membership will unite

the nation rather than divide it. The closer we work

together within the Union, the more successful we will be.

Although the danger of a major war in Europe has passed,

regional conflicts are gnawing away at the peace, and the

international community is powerless to resolve many of

them. For Finland it is important that Russia becomes a

stable partner in the international community and is able to

support peaceful development.

Efforts to create an architecture of European security

resting on co-operation must be continued, despite setbacks.

In this respect Finland has sought primarily to bolster

preventive diplomacy and crisis management by strengthening

the CSCE. This end will also be furthered by our membership

in the partnership for peace programme and observer status

in the Western European Union.

Finland maintains that enlargement of the European Union and

the policy of co-operation pursued by the Union will promote

stability and strengthen the foundations of security. Thus a

new leaf will be turned in a Europe still not entirely at

peace.

We are still suffering the effects of a lengthy economic

recession. Unemployment has not yet loosened its grip; there

were 471,000 jobseekers in November. The situation is

intolerable and threatens our nation's greatest asset, the

people and their full participation in building their

country and their own future.

The working group headed by Matti Pekkanen described

achievement of significant reductions in unemployment as a

national challenge comparable to payment of the war

reparations and post-war reconstruction. The comparison is

an apt one.

We must now overcome different, but equally tough challenges

in terms of economic gravity. Finland's total foreign debt

exceeds FIM 260 billion, on which more than FIM 20 billion

in interest must be paid to lenders outside Finland this

year. The State's share of this debt is 70 per cent.

The total State debt has grown and already exceeds FIM 300

billion. The high taxes and reduced social services caused

by it are already a heavy burden for the present generation.

Income taxes amount to only half the sum that must be

borrowed by the State annually. The situation will become

intolerable for our children and grandchildren unless we are

able to break this vicious circle of borrowing.

In today's open society co-operation and agreement among the

key forces in society are imperative with respect to

decisions on the major tenets of national policy. These

decisions will generate the confidence needed by a small

country to secure economic growth and high employment in

today's world.

We need solidarity and the creativity and hard work that

took us through previous periods of great change and made us

a successful nation. The next few months will show whether

such solidarity is still an integral part of the Finnish

character.

As a nation, we stand at a crossroads. The decisions we make

will have an impact for generations to come.

It is therefore important to clarify the values on which we

base our decisions.

What means does society have to confront this challenge?

In a changing society, the views of citizens also change

readily. We must avoid a situation in which a gap forms

between public opinion and political decisions, at least an

unreasonable gap. Thus our political leaders face a

challenging task; they must solve this problem in a positive

manner that strengthens democracy.

The political system must be able to withstand this change.

Relations between the branches of government must now, if

ever, be constructive. Finland has a popularly elected

Parliament and a Government that enjoys its confidence, and

a popularly elected President. Together, these institutions

ensure that power remains with the people. A democracy of

this kind will stand up to even the most rigorous

international comparison.

Change in our era is economic and social in nature, but its

psychological element is even more important. There is still

too much anxiety, coldness and indifference in our country.

Our task is to make Finland a kinder society, endowed with a

greater sense of solidarity.

This challenge confronts society as a whole, although as a

result of unemployment it concerns the economy and the

resources required to strengthen it most directly. The keys

to the kind of economic development that will increase

employment are largely in the open sector, in businesses, or

in businesses yet to be established.

We must ensure that Finland has a new generation of

entrepreneurs capable of breaking the back of unemployment.

Regional colleges and universities will play a key role

here.

Ethical principles must also be stressed. Freedoms can and

have been abused. Respect for enterprise has been eroded by

white-collar crime.

On the visits I have made with Mrs. Ahtisaari to various

regions in our country, we have been heartened by the large

number of our fellow citizens who have preserved a positive

attitude to life despite hardship. Their stamina is a source

of strength and hope to us all, but their optimism also

poses a formidable challenge. It is precisely they, those of

us who have endured the most, who expect a joint effort by

our political leaders to solve the major social problems.

I would like to wish each and every citizen a Happy New

Year. God bless you.