SPEECH BY THE PRESIDENT OF THE REPUBLIC AT THE OPENING OF THE 1995 SESSION OF PARLIAMENT ON WEDNESDAY 29.3.1995

The 24th Parliament of Finland has been chosen. A considerable number of new members were elected. I congratulate all of you on your election.

The Parliament now assuming its task will have to do its work in a period of historic transition. However, the post-Cold-War world is one of great opportunities. Those opportunities must now be grasped.

In recent years, a severe economic recession has put our country to the test. Many have succumbed to exhaustion and given up. There is much human suffering in our midst. The recession has also tested our faith in representative democracy and its instruments. Together we must restore that faith.

A tour de force lasting for the whole of the parliamentary term of office lies ahead. A sense of responsibility and a willingness to bear it are now needed on the part of both government and opposition.

In the decisions that they make, interest groups will likewise have to assume responsibility for restoring our economy to strength.

These demanding times call for exceptionally good cooperation between all of our organs of government. I, for my part, am ready for that and also hope for it from you, Distinguished Delegates.

We have three big tasks ahead of us:

1. To pilot our country out of recession.

2. To take part in championing our country's interests in the European Union and in measures to strengthen international security.

3. To reshape the Nordic welfare model.

The immediate task of Parliament is to facilitate the formation of a functioning majority government. I consider it important that the parliamentary groups address this task without delay. Citizens have a right to expect that the country is provided with a capable government as soon as possible.

In the past, the multi-party system has proved its ability to function in difficult situations. A broad consensus has emerged when one has been needed. Now it is again time for a consensus and national cooperation.

We have two fundamental economic problems that rank uppermost in urgency: unemployment and government finances. These maladies sustain each other. They must be crushed simultaneously.

It would be naive to expect such strong and prolonged economic growth that it alone would lower unemployment to a more tolerable level. Effective measures to encourage job-creation are also needed.

On both the level of the company and that of the individual worker, flexibility in terms of employment must continue to be increased in a managed manner. Precisely this will aid development of the economy's production base and structures.

Our country must be made an information society, where people's abilities, enterprise and a high standard of education and training are central production factors.

Economic growth alone will not narrow the deficit in government finances. The solution is not easy: expenditure must be cut. That is a fact that not one of us can avoid. We must strive for a tax reform that encourages people to work. Taxation must not crush initiative, prevent creativity from coming to the fore nor deter industriousness. A perception that taxation is too severe has already weakened the morale of citizens and the credibility of the state.

It must be ensured that companies are in good condition. Finnish companies have had too little equity and too much debt. Now, in a time of economic growth, companies should be allowed to lighten their debt burden. At the same time, they should invest, stay in good condition without artificial stimulants. For that they will need their profits that accrue to them over the next few years.

Finland needs a new generation of entrepreneurs. The prerequisites for the diversification of our economic structures that is essential should be created . "Companies' innovativeness, their ability to develop new products and production methods and to organise their operations in a new way will become more decisive," as the Matti Pekkanen working group notes.

Joining the European Union did not divide the nation. Those citizens who opposed membership have constructively joined in the work of championing our shared interests within the Union. It has been understood that one cannot go into a large market in a discordant mood.

One of the central questions in the parliamentary term now beginning will be that of creating and developing our country's policy on Europe. Now the Finnish people are participating, through their elected representatives, also in managing the affairs of the European Union.

This is a demanding challenge. The members of Parliament and of the Council of State must be able skillfully to defend our interests in the preparatory stages of Union business and when decisions on matters are being taken in various Union bodies.

We are seeking our place in the European Union. What is involved is a historic opportunity to safeguard our own interests by engaging in deepening cooperation with democracies like ourselves.

National political choices are shaping the politics of the whole continent. An important task for Parliament is that of developing the principle of subsidiarity. A distinction must be drawn between matters on which it is for us to decide on our own and those on which agreement is to be reached collectively. We do not want a distant supranational superstructure alienated from citizens and nation states, but rather a Union that functions on citizens' terms.

You have been chosen for your task at a time when the international community is in severe turmoil. We are living in real time in a world of growing interaction. Relations between states are likewise reshaping themselves in many ways. We are having to contend with many new security risks. International economic relations are changing rapidly, and in part unpredictably. The countries of Asia have challenged Europe and the United States to a tough economic contest.

Finland's international status has been clarified and our security strengthened. That is the result of the choices that we have made and of our pursuit of a responsible policy that emphasises cooperation.

We wish to develop relations with our neighbours on the basis of the principles of the new Europe. From the perspective of our economic development, cooperation with our immediate region will be of increasingly central importance. It is very important for us that Russia's reforms towards a market economy and democracy bring results. The whole world will benefit from that.

The European Union is the most important factor in the stability of the continent. For that reason we support gradual enlargement of the Union. That will require also economic sacrifices on the part of the existing member countries.

As a member state of the European Union we are preparing for the 1996 intergovernmental conference, which will deal with, in addition to many other matters, the development of a common foreign and security policy and of a common defence policy.

I hope that Parliament and deputies will participate actively in the discourse in preparation for the conference. We need accurate assessments, verified information and unbiased conclusions. Only we Finns can take our ideas and hopes, in their authentic forms, to a larger forum.

In the present decade, an enduring security solution must be created in Europe to eliminate the instability that has followed the end of the Cold War. A return to military competition must be prevented. Security must be understood broadly and dynamically. Europe must be made into a security region where political disputes are no longer resolved by military means.

Finland is changing into a civil society, where the management of collective affairs requires constant and close interaction between decision-makers and citizens. You have recent experience of that. You have been elected because you keep in good touch with your electors.

Let us develop our fatherland responsibly and equitably. Let us carefully cherish our unique natural environment. Let us ensure that the most vulnerable and weakest of our neighbours are given a secure life. Let us listen to each other and show tolerance.

Let us not harden our hearts to those who in this difficult situation have to resort to the help of others.

Distinguished Deputies,

I wish the new Parliament success in its work and declare the 1995 session of Parliament open.