Speech by the President of the Republic at the opening of Parliament on 4.2.1997

Last Saturday, three Finnish peacekeepers lost their lives in the line of duty in Macedonia. I ask that we observe a moment's silence in tribute to their memory.

Economic growth is accelerating. Prospects are improving in several countries that are important export markets for us. Yet mass-unemployment is relaxing its grip slower than had been expected, even though there are sectors in which direct shortages of trained, skilled labour are being felt.

Reducing unemployment is our uppermost concern. The whole of society must be harnessed in an effort to create jobs. It is encouraging that progress is being made in that direction. Now, all of the means and opportunities that economic activity provides must be coupled, without any preconceptions, to this national effort.

In order for that to be achieved, there is a need for all quarters to demonstrate a willingness to change and to compromise on perceived short-term interest so as to bring about the structural reforms that are essential if a better development of employment is to be ensured.

Although the economy is on an upswing, the public-sector deficit remains large and increased interest payments on the national debt limit the Government's room for manoeuvre. A reorganisation of industrial production on a global scale and the resultant competition is, in turn, requiring companies to meet ever stricter efficiency demands.

Entrepreneurs have experienced injustice in the tax system. I am giving my full support for efforts to redress those shortcomings. Companies and entrepreneurs must be able to receive equitable and fair treatment from the tax authorities.

We must be more determined in developing our national strengths: a high standard of education, our telecommunications-related expertise, our competitiveness in environmental technology as well as our countryside are among those strengths.

Economic growth is not enough on its own. Safeguarding the preconditions for it in our internationalising economy presupposes a reassessment of the role of the state in the sector of social security. A social security system that is just - whilst at the same time ensuring an ability and willingness to work - is a fundamental precondition for economic growth. Correctly weighted government finances are an important competition factor.

Thus prosperity, social justice and democracy are integrally linked. We have every reason to protect this equilibrium at the present time. By doing so we can over the longer term safeguard the foundation that supports our welfare society. A small country can thrive only through the wellbeing of all its citizens.

Economic development, the state of society and non-material wellbeing are the foci of quite many studies here in Finland. It would be good to co-ordinate those studies. Such a comprehensive review of wellbeing would be a service to all of us. It would also enable us to monitor implementation of citizens' basic rights.

Several bill that have come before Parliament for its deliberation have proved problematic. The internal cohesion of the parliamentary factions has been put to the test.

In a multi-party government, cooperation between the coalition partners has to contend with difficult situations that call for adaptability. In such situations, nevertheless, one must still be able to see the wood for the trees. In a world of change, it is best to build our country on a politically stable foundation. One of its central hallmarks is the ability of government coalitions to endure for the full parliamentary term.

In both of the elections last autumn, half of the young voters neglected to exercise their franchise. The political passivisation of young people is something to which we must turn our serious attention. We must involve them in taking care of our common affairs. An intergenerational interaction must be created. We must develop procedures for taking care of our common affairs, politics.

+ + +

In March the Government will submit its report on security and defence policy to Parliament for its deliberation. It will thus continue its assessment, begun two years ago with the submission of the Government's security-policy report, of our country's foreign and security policy in post-Cold War Europe. The report now being completed describes the changing environment in which we operate and concentrates on defence policy.

The ending of the Cold War created a qualitatively new basic configuration in our continent. Walls fell, interaction increased and economic and political reforms were set in train in Central Europe and the former Soviet Union. At the same time, new kinds of crises emerged.

Now the tasks to be performed by various institutions, the composition of memberships and cooperation relationships are being harmonised in order to improve security.

A change in NATO is part of this process. In the background to the alliance's enlargement are mainly two aims. Countries that have felt their military security to be inadequate are seeking membership. In NATO circles, in turn, the argument put forward in support of opening up the alliance is the need to strengthen democracy in Central and Eastern Europe.

Finland's position is different. To use a familiar phrase: we have been producers rather than consumers of security. Since the opening up of NATO we have increased cooperation with the alliance. That will continue to give us the opportunity to play an all-round part in building up the security architecture.

We have been in direct contact with the highest representatives of NATO and put forward our own views. We shall continue those contacts as necessary. All parties involved understand that there is no going back to the methods and patterns of the Cold War. It is important to preserve a functioning dialogue between all parties, especially between NATO and Russia.

We have stepped up our preparedness to participate in international peacekeeping and crisis-management tasks. Associated with that has been a deepening of cooperation with NATO, especially on the basis of the Partnership for Peace programme. The positive contribution of Parliament was central when we took those steps.

Later this month, the Ministry for Foreign Affairs will give the Foreign Affairs Committee of Parliament its report on Finland's activity as a mediator in the Nagorno-Karabakh conflict. This has been Finland's first significant crisis-management operation as a member of the European Union.

From Finland's perspective, it has been of overriding importance that the Baltic Sea region - and especially the position of the three Baltic States - is gaining strength both politically and economically. The accession of the Baltic States to EU membership would promote this process. Let us hope that the Baltic will become an inland sea of the European Union in the next decade. We shall endeavour to make our contribution to assisting a dialogue between the Baltic States and Russia.

The economic situation in Russia remains difficult. In the light of recent information, the economic and social situation in the Karelian region on the other side of the border, and in which Finland has a special interest, has become more difficult. Efforts to integrate Russia into the institutions of the international economy must be further stepped up. In this work the EU will have a constantly growing role and our position in the Union as Russia's immediate neighbour will be accentuated also in this respect.

Finland considers it important to strengthen the effectiveness of the European Union. This will create the preconditions for making relations between the EU and Russia closer, which is ultimately one of the key questions with a bearing on the stable development of our continent.

Strengthening the European Union's northern dimension is one of the areas of main emphasis in our policies. It will also promote Nordic cooperation in new conditions and create new resources for the development of the Baltic Sea area.

The intention is that the European Union's Intergovernmental Conference will be concluded this summer. Its success will be of importance for the enlargement of the Union, as you, Distinguished Deputies, well know. We are making a serious effort to develop the Union into a more capable and efficient actor in defending the interests of its member states' citizens.

The decision concerning Economic and Monetary Union will probably be the most important matter to be dealt with by this Parliament. A popular debate on EMU is both essential and inescapable.

Finland will strive to meet the EMU criteria to the degree that she will be in a position to enter the third phase of EMU among the first group of member states, if she so wishes. At the same time, it ought to be emphasised that the criteria as such do not impose any obligations on us that we would not have had to meet in the event of our not aiming to enter EMU.

Already now, companies and banks in the member states of the European Union are to a significant degree preparing to use the Euro as their medium of payment. This transformation of the monetary system is developing into a new reality, which must be taken into consideration.

I wish Parliament success in its work for the good of the people and citizens and hereby declare open the 1997 session.