Key note address by H.E. Ms Tarja Halonen, President of Republic of Finland, Finland-India CEO Round Table on 23 January 2007

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It is always a great pleasure to visit India and I am very glad to address this Finland-India CEO Round Table. The Finnish business delegation accompanying this visit represents very prominent and even world leader companies in their respective sectors.

I fully agree with Minister Pekkarinen (and other speakers) that our economic relations are very good. We need to develop our co-operation in a mutually beneficial way. Due to her geographic location, Finland is often called a gateway between Europe and Asia. This can provide interesting business opportunities too. Many Indian companies have started business in Finland recently, but I believe that there is still a lot of scope for further expansion in this respect.

Direct flight connections will certainly help increase company level and also individual contacts. Rich culture and the beauty of your country have many admirers in Finland.

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Yesterday, I attended the opening session of the Delhi Sustainable Development Summit. We had a very interesting discussion on issues relating to sustainable development, climate change, energy and technology. The focus of the debate was in particular on global responsibility. One conclusion is clear - we need multilateral co-operation to ensure a fairer globalization and more equal distribution of well-being and prosperity among people and countries.

A globalizing economy and growing interdependency in the world have convinced us Finns that a transparent and well-functioning set of rules and clear procedures make it easier to achieve both political and economic goals. In economic decision-making, too, we have to be committed to the respect for democracy, human rights and the rule of law. Companies have their own social responsibility, which they must show both in their own countries and abroad.

India’s development pace has been remarkable – my warmest congratulations to you for the progress you have made. You have been committed to take forward reform policies, which have helped create the present outstanding economic dynamism in your country. This provides a very good basis to continue the work.

We Finns are only five million, so we can never compete with quantity, only with quality. One of the crucial factors behind the Finnish "success story" is that education, science and research have traditionally been widely appreciated in the society and, therefore, they have become political priorities. Also, public-private partnerships have often been used. There is practically no corruption in our country, which means that these partnerships function well.

Finland is one of the most open economies in the world and also belongs among the leading knowledge-based economies. Finland is close to the top in many international rankings – for example for competitiveness, environmental sustainability, technology, industry-science relations and research and development expenditure. Lifelong learning has been given special importance in our country. Without well-trained workers, the Finnish economy cannot be competitive and our public sector cannot provide high-quality services efficiently. Education and training is a key tool for society and its various sectors in responding to change – and for individuals to self-determination and success.

Our education system is based on the principle of providing equal learning opportunities for everyone, regardless of where they live or their gender, financial standing, cultural background or native language.

Welfare and competitiveness are mutually supportive. I strongly believe that our success as a knowledge-based economy is due to the fact that Finland is a so-called "Nordic welfare state". The system is grounded on solid democracy, shared responsibility and social justice.

This welfare model makes my country more capable to take necessary policy measures to respond different challenges. It is important for the country, for the businesses and for the individuals. People need work and opportunities to brush up their education in order to support themselves, their families and to benefit the society as a whole.

Another important factor is that there is a long tradition of cooperation between social partners and the government in Finland. It is commonplace for us to meet, talk and try to establish a consensus on many economic and social issues. The government supports by its own policies long-term income policy agreements. This has proved to be a good way to develop the society and to strengthen societal tranquillity. The views of the business sector are valued and taken into account in government decisions. This is equally true of the views of the trade unions, which are also vital to the balanced development of society.

I am happy to say that recent economic growth in Finland has been among the highest within the EU region. Also, the prospects for the Finnish economy and employment situation over the next few years are favourable.

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Finland has always been a supporter of gradual liberation of world trade. However, sustainable profitability necessarily entails social and environmental awareness and responsibility as well as commitment to the ILO Declaration on Fundamental Principles and Rights at Work.

There is no doubt that a successful conclusion of the WTO Doha Round would bring major benefits for the world economy, for developed and developing countries alike. The WTO negotiations would help countries to progressively open their markets to competition for the benefit of all. Ultimately, flexibility and political will is required from all parties to re-launch and conclude the Round successfully.

Minister Pekkarinen already referred to the 7th Summit between India and the EU, which was organised in Helsinki last October. The negotiations on a broad-based bilateral trade and investment agreement between the Union and India should start during this spring.

Bilateral free trade agreements cannot replace the WTO and its instruments but can be important complements to the global system. Bilateral co-operation between India and the EU will broaden and deepen the economic integration between both economies and hence create new business opportunities for Finnish and Indian companies. I hope that our countries could deepen the cooperation especially in the field of research and development.

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No discussion on future challenges can ignore energy. For all countries, it is important to secure sustainable energy supply. However, we need to accept that increased energy-related emissions and pollution call for urgent action. Vital steps include for example the promotion of technology transfers and use of efficient and clean energy technology.

In Finland, good results have been achieved in developing efficient and environment friendly energy production, transfer and end-use technologies. In this sector, Finnish companies are looking for business opportunities also in the growing Indian markets.

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I am very happy to see the recent developments in our bilateral relations. The political, cultural and economic ties between Finland and India are growing stronger day by day and I am positive that the trend will continue.

To conclude, I would like to thank each of you for participating in this Round Table. In particular, I would like to thank Assocham and all those who have contributed to the excellent organisation of this event. Thank you.