(Translation)
ADDRESS OF GREETING BY
PRESIDENT OF THE REPUBLIC OF FINLAND
MARTTI AHTISAARI AT A CELEBRATION OF THE 20TH
ANNIVERSARY
OF THE GERMAN-FINNISH CHAMBER OF COMMERCE IN ESSEN ON 26.9.1998
Attending the celebrations marking the 20th
anniversary of the German-Finnish Chamber of Commerce here in
Essen is a pleasant task. Germany is an important country for us
Finns: it is one of the sources of our cultural heritage and our
most important trade partner. Membership of the European Union
has raised relations between Germany and Finland to a new level.
This has naturally affected also our trade, a point clearly
highlighted in the contributions of earlier speakers.
Finland has built her prosperity on the foundation of an
international division of labour, on foreign trade. Germany is
the main destination for our exports and also our main source of
imports. Our exports to Germany have more than doubled in the
past ten years and today exceed 11 per cent of our total exports.
The items that we have traditionally exported have been paper and
other forest products, but these have now been joined by metal
articles and new-technology products. Finland is by no means an
insignificant customer for Germany, either; in fact, we are just
behind China as an export market in the German trade statistics
and ahead of, for example, Canada or Australia.
When the Chamber of Commerce was founded 20 years ago, we were
living in the Cold War era. In those days, the distance between
Finland and Germany was in many senses greater than it is today.
The Chamber of Commerce had its own special role in bringing our
countries closer together and creating contacts. The ending of
the Cold War affected the immediate environment of our countries
and especially the Baltic Sea region: that made it possible for
Finland to join the European Union and increased the importance
of the entire Baltic Sea region.
Finlands accession to membership of the European Union made
the traditionally-strong economic relations between Finland and
Germany even closer. Now economic and monetary union means the
dawning of a new phase in our relations. Soon we shall be united
by a common currency. It lies in the interests of both countries
- and of the whole of Europe - to ensure that EMU is stable and
the new currency strong. Finland will be among the first wave of
11 countries entering the euro area. We have met the stability
criteria required for membership. EMU will strengthen our
companies price competitiveness. What is most important,
however, is that it will give them predictable ground rules and a
stable environment in which to operate.
It is a pleasure today to outline the state of the Finnish
economy. The indicators point to a continuation of balanced
growth. Gross domestic product is forecast to grow by 4 per cent
next year. Although the rate of growth is tapering off slightly,
domestic demand is now also gathering momentum. Exports have
continued to increase vigorously and our trade surplus is bigger
than its has been for a very long time. Thus we are in a position
reduce our foreign debt rapidly. Our public finances are likewise
in surplus and inflation has not been so low for ages. Our major
problem, unemployment, has dropped below 10 per cent and the
trend looks positive.
The recent economic difficulties in Russia have naturally created
uncertainty in the region. Our exports to Russia have been
developing favourably in recent years and now represent about 7
per cent of our total exports. Diversification of the structure
of our exports will help our companies to redirect their exports
if necessary. The situation in Russia has not affected our
currency. That is one of the first consequences of Finlands
joining the euro area.
As a member of the euro club, Finland will continue to stabilise
her economy and strengthen its base. The structure of our economy
has diversified. The relative share of high technology is
constantly growing. Today, Finland has more Internet connections
and cellular phones relative to population than any other country
on earth. Training and research are further strengthening our
position in the forefront of development. In addition to its
traditional supporting pillars, the forest products and metal
industries, the Finnish economy now has a third in the form of
high-technology industry, which already accounts for a fifth of
our total exports.
For us Finns, globalisation is a fact. Investment flows and
international corporate deals have taken their place alongside
traditional visible trade. Many companies in Finland have
acquired new international owners. European integration is having
similar effects. Finnish companies made large investments abroad
in recent years, also here in Germany. There has been investment
in Finland as well. Yet there still remains a lot to be done in
this sector. It is possible that in both countries investment
objects have too easily been looked at from beyond the oceans.
The German-Finnish Chamber of Commerce certainly has a
significant role of its own when the advantages of Germany or of
Finland also as investment locations are being assessed.
In 1999 it will be Germanys and Finlands turn to
assume the Presidency of the EU. This responsibility will come at
a time when important decisions on reforms of the Union fall due.
At the same time, preparations for world-wide trade talks will be
in progress. The EU is the most important promoter of
liberalisation of world trade and investment and I hope that we
shall be able to enhance its ability to act also more broadly in
global questions. That lies in the interests of all member
states.
The northern regions of Europe are potentially one of the most
important growth areas. Russias recent economic
difficulties do not alter the fact that trade in the Baltic Sea
region is on a strong upswing. Dismantling barriers can enable
trade to increase several-fold in the future. In the sectors of
energy management, the environment and transport, matters of
great importance to the Union are involved. In the next century
Europe will be increasingly dependent on northern energy
resources. Shared interests and mutual dependence will create
stability in the region. Russias integration into European structures will be supported by
improving the central trade channels between that country and its
European neighbours. To be able to handle all of the
opportunities - but also the threats - that the northern regions
offer there is a need in the European Union for the Northern
Dimension policy that Finland has proposed. What is involved here
is a definition of the interests of the Union as a whole.
Finlands initiative has received widespread support not
only in fellow member states, but also from other countries in
the region - Russia, the Baltic States, Poland, Norway and
Iceland.
Globalisation demands bigger and more competitive companies.
Europes competitiveness is not the best possible. EMU is
one means of making our continent more competitive. This presents
a challenge to small and medium enterprises. I am glad that the
German-Finnish Chamber of Commerce is helping precisely those
companies to internationalise. For Finnish companies Germany is a
natural place to begin internationalising.
I wish the German-Finnish Chamber of Commerce and its members the
best of success.