Translation
SPEECH BY PRESIDENT MARTTI AHTISAARI AT A LUNCHEON IN
CONJUNCTION WITH A BUSINESS
SEMINAR IN ATHENS ON 15.9.1998
I appreciate the opportunity to address such distinguished
representatives of business and industry in Finland and Greece. I
hope this seminar will promote cooperation and other interaction
between companies in our two countries.
When the work of developing the European Communities began after
the second world war, the idea was to ensure the preservation of
peace in our continent by closely dovetailing the economies of
the European countries. Barriers to economic cooperation began to
be dismantled with the aim of promoting economic growth and
prosperity as well as political stability. Integration has served
both goals well. Recent decades have been a period of uniquely
positive economic and political development throughout the
European Union.
Integration has brought countries that were earlier more distant
from each other in the geographical sense - such as Finland and
Greece - into a common framework for economic endeavour. The
development of economic ties between EU member states now depends
to a growing degree on the activeness and creativity of
companies, on finding existing opportunities.
Trade and other economic relations between Finland and Greece
have been developing positively. A surplus in Finlands
favour has been characteristic of our visible trade. Last year,
the value of Finnish exports to Greece totalled 1.2 billion
markkas or 67.8 billion drachmas, whilst our imports from Greece
amounted to 400 million markkas or 22.6 billion drachmas.
A factor that substantially compensates for our trade surplus is,
however, Greeces great popularity with Finnish
holidaymakers. For todays Finns, Greece and especially her
unique archipelago have become familiar, and for many of them
near and dear. Greece has long been the Finns most popular
holiday country in the Mediterranean region in summer - more than
130,000 of them came here last year. In numbers of visitors over
the whole twelve months of the year, only Spain together with the
Canary Islands ranks ahead of Greece as the Finns most
important holiday destination in southern Europe.
As for travel in the other direction, it has been pleasing to
note that thousands of Greeks have begun discovering Finland as a
place to visit. Especially around Christmas and New Year, trips
to exotic, snow-blanketed northern Finland, to Lapland, have been
popular. I hope the Greeks will also discover our summertime,
cultural Finland. I am certain that we can offer unique art and
musical experiences to discerning visitors. I believe that the
development of tourism links between our countries will make an
effective contribution to strengthening a sense of European
affinity among citizens.
Until quite recent years, Finnish exports to Greece consisted
overwhelmingly of forest products. Now, however, the structure of
our exports is diversifying, especially as high-technology
products gain market share. This development corresponds to the
overall pattern of our foreign trade, because high-technology
articles have increased their share of our total exports to about
a fifth. That growth is a result of our major inputs into
research and development, which now amount to 2.6 per cent of our
gross domestic product. That proportion is still rising and I
believe that next year we shall reach about three per cent, which
is close to the top of the world league.
We Finns, in turn, come to Greece to buy many of the products
that our industry and consumers need, such as minerals, clothes
and agricultural produce. On the whole, the structures of the
Finnish and Greek economies and industrial sectors are largely
complementary, which in my view creates interesting prospects for
economic cooperation between us. I believe that the business
seminar which has begun today will help to increase awareness of
the new opportunities that exist for further developing our
economic and trade relations. I would like to encourage Greek and
Finnish companies to avail themselves of this unused potential.
Eleven members of the European Union, Finland among them, will
enter the third stage of economic and monetary union at the
beginning of next year. The European Central Bank will then begin
practising a common monetary policy and the exchange rates of the
currencies of the countries forming the euro area will be
permanently pegged. From the economic perspective, the greatest
achievement of European integration to date has undoubtedly been
the creation of the Single Market. The euro area must be seen as
a natural continuation of the Single Markets development.
The euro area and maintaining its stability are now just as
important a basic value as the Single Market.
We in Finland have noted with great interest the determination
with which Greece is striving to meet the preconditions for entry
into economic and monetary union. The Greek economy has been
developing favourably, and we hope that as soon as possible we
shall see Greece as one of our partners in the euro area group of
countries.
Our countries economies are developing positively. Both are
growing at faster than the EU average. Economic growth in Finland
has remained strong. Our aggregate output is forecast to grow by
5.5 per cent this year and 4 per cent in 1999. The unemployment
rate, which has cast a shadow over our economy, is also forecast
to fall to 10.5 per cent this year and 9 per cent next year. The
Finnish economys prospects for next year are good. Our
export competitiveness is excellent, household and corporate
finances are in good shape, interest rates are low and so is
inflation. It is obvious that favourable economic development
both in Finland and in Greece improves our companies
prospects of operating with success in both bilateral and third
markets.
Finland is located in the stimulating economic environment that
we call the New Northern Europe Business Area. This area
comprises both our traditional Nordic trade partners and the new,
developing markets of Russia and the Baltic States.
Russias economic difficulties are creating uncertainty. The
global economy as a whole is likewise undergoing a disturbance in
its growth. Yet the crisis in Russia did not come as a surprise.
The changeover to a functioning market economy is more difficult
there than in most of the other states of the former Soviet
Union. Russia must be a more integrated part of the global
economy. No one will benefit from isolating her.
All in all, our trade with Russia and the Baltic States has been
developing strongly in recent years. Russia is now our
fourth-biggest trade partner. Trade with Russia has been
especially important for our small and medium enterprises. It is
estimated that more than 2,000 Finnish companies are engaged in
trade with our eastern neighbour. In trade with the Baltic
States, Estonia has quite a central position and in fact Finland
is that countrys most important foreign economic
cooperation partner.
The Finnish business and industrial sectors have extensive
experience of trade and other economic cooperation with Russia, a
fact of significance in the present situation. The European Union
is Russias main trade partner and, on the other hand,
Russia will continue to be an important economic partner for
Europe thanks to her vast energy and other natural resources. In
this challenging environment, Finland offers Greek companies
interesting options when they are considering operations or
locating in this region - not just in Finland, but in northern
Europe generally.
I wish the seminar participants the very best of success in your
important work to cherish and further develop economic and trade
relations between Finland and Greece. I propose that we raise our
glasses in a toast to the good fortune and success of the
Hellenic Republic, the excellent relations between Finland and
Greece and to your health.