SPEECH BY PRESIDENT OF THE REPUBLIC MARTTI AHTISAARI
AT A BANQUET FOR THE DIPLOMATIC CORPS IN HELSINKI ON 23.04.1998

Europe is developing towards greater unity. That is not happening by itself, but requires cooperation between states and institutions as well as the support of citizens.

At the summit in Amsterdam last June, the member states of the European Union agreed on a revision of the founding treaty that will make enlargement of the Union possible. The Parliament of Finland will complete the process of ratification of the Treaty of Amsterdam within two months.

The Union’s latest enlargement phase initiated less than a month ago is a demanding project that will take years. There is also a need for the Union to adjust its structures. These projects are prompting a discourse both within and outside the Union. The ultimate goal of European integration, which is to expand the area in which stability and security prevail, must be made clear.

Alongside negotiations with candidates for membership and its accession strategy, the Union offers its partners both in Europe and elsewhere other opportunities for cooperation and forms of dialogue. This corresponds well to Finland’s conception of a Union that is open to the rest of the world.

Recent events in the economies of some Asian countries demonstrate that we should not take a continuation of linear development for granted. Nor can disturbances be regionally confined. This highlights the need for closer international cooperation.

Finland’s own economic development in recent years has been good, although in many ways it has also been a painful example of adjustment to the circumstances of an internationalised economy. As a result of the shaking that it experienced during the recession in the beginning of the decade, our economy has undergone many structural changes. Our banking sector plunged into a deep crisis, our building industry nearly disappeared, a wave of bankruptcies swept away many small and medium enterprises and tens of thousands of agricultural jobs were lost.

But a crisis always bears the seeds of change within it. The development of the Finnish economy has demonstrated that. Exports remained the backbone of our economy, but it had to grow an additional leg to stand on. Now, alongside the wooden one and the metal one, a high technology leg supports our economy.

Our inputs into research and development have been vital for this development. The level of investment in research has been rising steadily in Finland in recent years. Parallel to this, we have stepped up our participation in international research cooperation.

Although our economy has diversified also in its non-export segments, there is still considerable potential for growth in the services sector. Large numbers of new jobs could be created in this sector. Indeed, this has begun to happen in recent times.

Despite the fact that here, as also in other countries, economic growth forecasts have been revised downwards in recent weeks, they still promise good growth in Finland this year. Investment, private consumption and aggregate output will rise, although the latter will do so at a slower pace than earlier. Inflation and interest rates will remain low. Unemployment is expected to continue to fall.

With that starting point, Finland can be in a confident frame of mind as she prepares for next weekend’s series of meetings to decide which countries will take part in the third stage of economic and monetary union and on the common currency. Last week, our Parliament adopted the report submitted to it by the Government on Finland’s joining EMU.

With the decisions to be made over the First of May weekend, European integration will take a long and bold step. I believe that this step will also bring global benefits.

I hope that in the new few days the Finnish spring, which has kept us waiting for so long, will likewise take a long and bold step. I believe that all of us who have lived through the past semi-winter deserve a touch of spring.

I thank the Helsinki diplomatic corps for good cooperation. On my own and my wife’s behalf, please permit me to propose a toast in your honour.