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SPEECH BY THE PRESIDENT OF THE REPUBLIC AT THE OPENING OF THE 1998 SESSION OF PARLIAMENT ON 04.02.1998

Last year culminated in the 80^{^th}^{anniversary of our declaration of independence. We rejoiced in the fact that we had been building up Finland for 80 years
and that what has been achieved has proved lasting. It ought to be remembered, however, that the most tragic episodes in our nation's history were associated
with the early days of our independence. This year we shall be remembering the events of 1918 in many ways. Having just become independent, Finland was
then in a state of disintegration. The civil war impressed itself permanently into the innermost recesses of our consciousness. Then, in the difficult tribulations of
the winter and continuation wars, we saved our independence and forged a nation that was again coming together in spirit. What we experienced in those
wars and the faith in the future that grew during the years of reconstruction have created a foundation for national self-esteem and confidence in our ability to
cope with seemingly insurmountable challenges.}

^{A session that will see historic decisions lies ahead for Parliament. A decision must be made this spring as to whether Finland will enter Economic and
Monetary Union according to the agreed timetable and together with ten other members of the European Union. What is at issue is not only the effects of
joining, but also what remaining outside would mean for us.}

^{The world economy will remain susceptible to crises and swings for a long time to come. The euro is one means of not only strengthening European
competitiveness and prosperity, but also, over the longer term, stabilising the global economy.}

^{The unification of Europe is ultimately an historic opportunity open to all of the peoples of our continent. Peace and freedom are replacing occupations and
persecutions on grounds of opinion. The European Union needs an effective economic foundation. A common currency will build it.}

^{The most important legislative project at this session will be "Constitution 2000", the comprehensive constitutional reform that has been under careful
preparation for a long time. A Government bill proposing a new Form of Government Act will be introduced right at the beginning of the session.}

^{Our present Form of Government Act was adopted in a different kind of world from the one in which we are living today. It is striking that nevertheless we
enjoyed good success in creating a foundation for independent Finland's political system and functioning democracy. The Form of Government Act has
demonstrated its durability and usefulness in many difficult situations and helped ensure the survival of the nation. For that we can in all essential respects thank
the flexibility of our Form of Government Act.}

^{Finland is a state governed by law and a parliamentary democracy. However, democracy must always be looked after. We are strongly involved in
international cooperation, especially building a uniting Europe. The European Union is an important channel of cooperation and influence for Finnish foreign
and security policy. Its international prestige must be strengthened.}

^{Constitutional reform can in all essential respects be built on the foundation that has been created in the time that we have been independent. The intention in
implementing reform is not to upset our political system, but rather to improve its capacity to function in the new millennium and to take due account of the
demands of EU membership. Cohesion and consistency in foreign policy has been safeguarded. The President will conduct foreign and security policy in
collaboration with the Council of State [Government] following practices and procedures that have already become established. A nation's success depends
essentially on good cooperation between the branches of government.}

^{Ensuring the implementation of fundamental rights, reinforcing the rule of law and the requirement that administration be governed by legality, increasing the
effectiveness with which representative democracy and parliamentarism function, and respect for separation of powers are generally accepted principles in
Finnish society. They are likewise the foundation for the new Form of Government Act.}

^{A constitution can not be a complete prediction of the future, nor should that be the aspiration. Life can not be completely governed by means of legal norms.
The primary task of a constitution is to create, as it were, a set of support pillars for the work of the branches of government and to define the principles on
which the legal situation of the individual is based. The flexibility that Ståhlberg's Form of Government Act has demonstrated will continue to be required of
our constitution.}

^{Parliament has been participating in national processing of European Union matters. Parliamentary support has given our EU policy greater intrinsic weight and
credibility. The intention is to retain this advantage in our new Form of Government Act.}

^{The acceptance of a constitution presupposes a broad national consensus. All of the parliamentary factions have participated in drafting this document. I hope
that Parliament will deal with this historic reform in a spirit of good cooperation.}

^{Economic development in Finland has been encouraging. Unemployment is clearly declining, and especially services have begun to feel firm ground under their
feet. From the perspective of balanced development of the country, this is an important trend of development. Especially with the economy on an upswing, we
must be careful to ensure that our hearts do not cool to those of our neighbours who need support. There must be no feeding a tendency to return to a society
of inequality.}

^{The threshold to employment must be lowered and obstacles in the way of enterprise must be dismantled. Achieving this will require more effective training
and the creation of a taxation system that encourages people to work. I have noted with satisfaction that the question of improving the legal security associated
with taxation of entrepreneurs and other citizens has been extensively studied. We can be confident that tax procedures will be further developed on the basis
of this work and that as a result citizens will be able to enjoy more equitable treatment and greater legal security in taxation.}

^{We have seen in recent months that concern for the state of our environment has, rightly, prompted a wide-ranging discourse in our society. The long-ongoing
deterioration in the state of the Baltic Sea ecology finally became exceptionally obvious as we enjoyed a prolonged spell of hot weather last summer. The
Kyoto climate conference was an important step in bringing about a global environmental awareness. Global warming is the most serious environmental
problem of our era.}

^{The youth, too, have been expressing grave concern about the dangers of disturbing the environment. Environmental affairs are global concerns. A decline in
the number of species of flora and fauna is a problem. A kind of polarisation between advocates of soft and hard values has taken place among the youth in
recent years. In particular, we must be concerned about racist attitudes and phenomena. Among animal activists there are some, obviously a small minority,
who have begun resorting to illegal means. Finland is a state in which the rule of law obtains and where there are democratic channels of influence. They must
be availed of.}

^{The international situation is always multi-faceted. Our traditional perceptions are being put to the test. Confrontation between East and West has abated in
Europe. On the other hand, tension has heightened in northern parts of Africa and the Middle East.}

^{We must support the United Nations in its efforts to resolve the Iraq crisis. The Government of Iraq now bears responsibility for the situation in its territory
having become extremely grave as a consequence of arms inspections having been interrupted. The UN Security Council must ensure that Iraq's weapons of
mass destruction are destroyed in accordance with its resolutions.}

^{During the period of our independence, we have never before had good relations with all of our neighbouring countries at the same time. Now we have. It is
important to recognise this fact. It gives us new opportunities, from which all benefit.}

^{One such possibility is linked to the European Union's stepping up its activity in northern Europe. The EU Northern Dimension project announced by the
Finnish Government has received support both within and outside the Union. We shall continue to concentrate determinedly on promoting this project.}

^{The global era requires intense and time-consuming efforts to look after Finland's export interests on all continents. In this way we shall both be promoting
employment in our own country and contributing to global economic interaction. World-wide intensification of economic ties will create a foundation for
prosperity and implementation of human rights. The economic difficulties besetting South-East Asia and Japan are reflected in the entire world economy, and
also in our own growth forecasts. The countries of the region must determinedly carry through social reforms in order to promote positive development. In this
situation, the interests of the European Union, the whole of Europe and the United States run very much in parallel. To the extent that our opportunities permit,
we are supporting international efforts to stabilise economies in the Asian region.}

^{As NATO enlarges and restructures, there have been exchanges of opinion also here in Finland, and at times the debate has been heated. However, we have
been able to note to our satisfaction that the basic solution in our security policy, non-participation in military alliances and cooperation within the new NATO
structures, has strengthened the development of stability not only in our own case, but also further afield in our continent. In this way, we have been able to
preserve the national consensus on the principles underlying our security policy.}

^{Ensuring a correctly dimensioned capability to defend the country is an important requirement from the perspective of the credibility of our security policy. The
aim is to create special rapid response units within the Defence Forces, whereby the personnel strength of the Army and its expenditure on material can be
reduced, and even significantly so. With the appropriation for procurements declining in the way outlined in the Council of State report to Parliament on
security and defence, there is reason to try to increase cooperation with Sweden in the materials sector. In this respect, there would seem to be opportunities
well worth considering in, for example, our helicopter procurement project.}

^{The century will soon draw to a close. As a nation we have once again found our way forward through major upheavals. We are not isolating ourselves. Our
distinctive culture is strong. Our faith in the future is firm.}

^{Great changes in the global economy and world politics present us with a major challenge, to which we must find answers as individuals and as a nation.
Responding to this challenge requires a creative and active input from all of us.}

^{I wish Parliament success in its work and declare the 1998 session open.}