New Year's Speech by the President of the Republic of Finland on 1 January 2004

Citizens,

Elections are an important part of democracy. Following last spring's parliamentary elections, our country received a new coalition Government. After Prime Minister Jäätteenmäki's brief Government, the same parties formed a new Government. This Government headed by Prime Minister Vanhanen has now established its position.

This year is also an election year. Elections for the European Parliament will be held in June and local elections in October.

The significance of the European Union has increased in our daily lives. Cooperation is needed in more and more areas. The position of the European Parliament has been strengthened and its significance will continue to increase in the future.

Local authorities have a key task in arranging services in our welfare society, such as social services, health care and education. It is thus important for our daily lives whom we elect to make these decisions.

Let's exercise our right to vote!

International uncertainty and armed conflicts continued last year in different parts of the world. The situation in Europe and Finland's position have remained safe and stable, however, and our relations with all our neighbours are excellent.

During the past year security policy has been actively discussed in our country. Discussion has particularly concerned the development of cooperation in the European Union and the preparation of the Government's security policy report. The question is how we can best take care of Finland's and Finns' security in the future.

Cooperation between the Government and the President of the Republic in preparing the security policy report has gone well. Parliament will receive the report sometime this year.

I myself have emphasized the following points concerning our security policy:

Finland does not face any security threat which in itself would require us to change the basic structure of our security policy.

Finland's defence has always been primarily up to us, regardless of whether we belong to an alliance or not.

The European Union's Intergovernmental Conference last year did not reach a consensus on a new Constitution. The Union still has its present treaty and there is plenty of time to negotiate a new one. Negotiations should continue without delay, however.

Finland wants to develop the European Union as an equal community of member states so that it corresponds to citizens' needs and wishes as well as possible. The Union's justification and acceptability depend on these things as well as the division of power, which is also important.

Membership of the European Union and active participation in every sector of it have promoted Finns' well-being and have also strengthened our security policy position.

Finland considers it important to develop the Union's civilian and military crisis management capability. The Union should promote peace and stability in Europe and other continents. The Union's ability to prevent and manage crises is above all political and economic, but military capability is also needed in crisis management.

Our point of departure has been that we are prepared to help other member states if they need help. On the other hand we assume that others will help us if we need help. The consensus achieved in the Intergovernmental Conference regarding this matter is a good compromise.

Ten new members will join the Union at the beginning of May. This is a good thing for all Europeans, although enlargement still involves many challenges.

Finland is dependent on international trade. The efficiency of the Union's internal market is a precondition for our welfare. An efficient internal market will help us succeed in global competition.

Finland has been regarded as a winner and success in globalization - and even an example to others. With the reduction of barriers to international trade we have been able to export our products and services around the world. Of course we also have experience of the dark side of globalization.

Important matters are of common interest around the world. Peace, stability and prosperity in our neighbourhood and farther away promote and strengthen Finns' prosperity and security.

Finland works in the UN, the World Trade Organization and other international forums to create rules and develop cooperation to govern globalization. In its present form globalization is not fair and does not ensure sustainable development. Everyone must return to the negotiating table to revise the rules of international trade and investment.

The nation-state must be strong to meet the challenge of globalization. We know that our own success has been based above all on people - on expertise, innovation and cooperation.

Our social welfare net helps people but also supports participation in tightening international competition. Globalization is about participating and adapting to changing circumstances.

We have done well, but we cannot become complacent. Our challenge is also to succeed in tomorrow's globalization.

Our key success factors will remain education, research, expertise and entrepreneurship. We need active measures to spur innovations and to develop and market them. Smooth cooperation between the public sector, education and business is extremely important.

In my international tasks I have become even more certain that we must take care of ourselves. Finland must create a national globalization strategy for the future. This requires cooperation between the Government and labour market organizations. On the basis of discussions I am convinced that this work is being approached with the necessary determination.

Unemployment is still our most serious social problem. In many workplaces people are worried about their jobs. Yet at the same time Finland faces a shortage of workers. We must continue to invest in properly educating our children and young people and helping adults develop new skills.

Work is the foundation for our national wealth and well-being. Success in tightening international competition requires continuity in working life and possibilities for lifelong learning. The modern working world requires flexibility. The basic point of departure, however, should still be people and their need to balance work and family life.

Children's welfare has been a common concern in recent years. Most children are better off than before. Still, all too many children need help. Parents' care is the primary way to ensure children's welfare and prevent mental health problems. We all have a shared responsibility for children and families as well.

Deficiencies in mental health services have been repaired. A great deal has been achieved particularly in children's and young people's psychiatry. New prevention and treatment models have been created along with new cooperation networks.

I believe it is important to devote serious attention to preventing and treating mental health problems. Particularly resources should be available in children's psychiatric research and care and in different forms of social support.

I have often talked about culture being people's spiritual home in our rapidly changing world. Culture also has a growing economic significance. Successfully combining artistic creativity and economic production has resulted in nationally significant products. We could even say that industrial design is part of our national identity.

Finnish architecture, design, music and other culture also have international appeal. In different fields of culture and the arts we have strong international successes.

Our challenge is to improve different dimensions of cultural expertise. This requires respect for our cultural heritage, attention to creativity and the development of cultural production. Finland has opportunities to make cultural production a significant national industry.

Our own culture is developing and receiving influences from outside. It would be good if our country could attract immigrants to start businesses and hold jobs. Immigration should not be viewed only on the basis of our own needs, however. Immigrants should be treated as neighbours who have equal rights and obligations.

One of the most important values of a multicultural society is tolerance. Tolerance does not mean that we would approve, under the guise of cultural traditions or customs, violations of the principles of democracy, human rights and the rule of law. We must strengthen these together.

Finally, I would like to thank you on behalf of my husband and myself for your cooperation and numerous contacts. Thank you also for the greetings I received on my birthday. Your support and interest in the management of common affairs has been important. I wish all of you a good year in 2004.