OPENING ADDRESS BY PRESIDENT MARTTI AHTISAARI OF THE REPUBLIC OF FINLAND

AT THE FINNISH-BRITISH BUSINESS FORUM, London 25.11.1997

Over the next few weeks, Finland will be celebrating the 80^th anniversary of her national independence in many different ways. The event of greatest international significance and with the richest and most varied cultural content is taking place here at the Barbican Centre. It is a great honour for Finland that Her Majesty the Queen has graciously consented to be the joint Patron of this event along with myself and to attend our reception this evening together with HRH Prince Philip.

^{We Finns are proud of this festival, which presents the modern EU member Finland in London, the city that has historically been our gateway to the world. It is through London that we have engaged in cultural interaction, trade and economic cooperation.}

^{Finland's accession to membership of the European Union nearly three years ago has strengthened and diversified the traditionally strong economic ties between Finland and Britain. Our countries' visions of the future of European integration are largely similar. Both of us will likewise have to bear a special responsibility in the near future, when far-reaching decisions concerning the future of the Union are made. Britain's Presidency begins in just over a month's time and ours will last for the final six months of this millennium, a period in which decisions on reforms are due to have been arrived at.}

^{Finland has built her prosperity on foreign trade and Britain has always been among her foremost trade partners. Today, your country is second as a destination for Finnish exports, and third on our list of import sources. Our traditional exports to Britain have been paper and other forest products. Today, metal products and high-tech articles have assumed a prominent role alongside them. Our imports from you have consisted largely of machinery and transport equipment, and that remains the case. Both our imports from you and our exports to you have been constantly diversifying at the same time as advanced technology has been accounting for a growing proportion of them. Where trade in goods is concerned, there has been a strong surplus in Finland's favour, but on the services side the roles are reversed. Britain is also an important focus of Finnish investment: we have invested around £600 million, of which over a half has been in industry.}

^{Two representatives of British and Finnish industry, Sir Colin Marshall and Mr. Jukka Härmälä will soon be telling you how industry sees the global and European challenges that lie ahead and their perceptions of how change will influence economic relations between our countries.}

^{As implementation of the third phase of EMU approaches, prospects for the Finnish economy are good. Annual economic growth of around four per cent will be sustained, without danger of overheating, for at least the next couple of years. That will gradually lower the level of unemployment and reduce the deficit in public finances. Demand for our export products has been surprisingly strong this year and it is expected to continue growing at the same rate, i.e. seven per cent, also next year.}

^{As a country that depends on foreign trade, Finland has understood the demands of competition and been willing to open up her market. We have concentrated in particular on raising the level of training and skills, a central goal that we share with Britain. Research and development are key words in success. Our industry has been concentrating its resources on certain selected sectors in which the Finns can today offer expertise of a level unrivalled anywhere. Examples include our forest cluster, telecommunications, environmental protection technology and especially expertise in relation to energy, transport and logistics in northern conditions.}

^{With the political transformation that Europe has undergone, the former borderlines between markets have also been altered. The Nordic region, which has traditionally been a raw materials producer, has become an important market comprising Scandinavia, the countries around the Baltic and north-western Russia. Finland is in the middle of this region, and we have begun calling ourselves "The Business Centre of the New Northern Europe".}

^{The European Union acquired a northern dimension when Finland and Sweden joined. It now has a long common border with Russia and a new line of contact throughout the Baltic region. Developing this dimension will benefit the entire Union. The fact that the eastern border of our country is also the EU's interface with Russia offers new opportunities for companies that locate in Finland and a conduit through which they can expand their operations into a market with at least 80 million consumers.}

^{It is Finland's aim to be in the first wave of countries, along with the majority of the EU members, participating in the third phase of EMU next spring. That is because we believe it to be in our interests. For the Finnish economy EMU will mean a stable growth environment. It is just as logical a step for us as was joining the EU. We want to have a say in the places where central decisions with a bearing on our economy are made.}

^{Finland and Britain largely concur in their goals within the EU. We both support openness, freedom and sensible use of funds. Our goals with respect to enlargement are likewise the same. We want a stable and secure Europe, where the free movement of people, goods and ideas will create prosperity for all of the peoples of our continent.}

^{Prospects for the development of economic relations between our countries are now good. This forum gives participants an opportunity to discuss topical international, European and global questions that impinge on Finnish and British industry. I wish you success in your work.}