PRESIDENT OF THE REPUBLIC OF FINLAND MARTTI AHTISAARI

AT THE UPPER HOUSE OF THE STATES-GENERAL OF THE NETHERLANDS ON 20.1.1999

Thank you for your warm reception and kind words of welcome. It is a great honour to visit this historical building where parliamentary traditions have for so long been cherished.

Finland's links with the Netherlands are centuries-old. They were born of trade, but have gradually evolved on the basis of the values that we share: parliamentary democracy, the rule of law, good administration and respect for human rights.

A parliament with a mandate from the people, and to which the government is answerable, bears the ultimate responsibility for exercising oversight to ensure that these principles are observed. I know that the States-General is one parliament that discharges this responsibility with the utmost conscientiousness.

Finland faced a new challenge when we joined the European Union in 1995. Many matters that had belonged in the sphere of policy became internal European Union affairs. This naturally required new arrangements. One central question was how to guarantee our Parliament's effective participation in the processes through which decisions are arrived at. We succeeded well, and our legislators now play an important role in the formulation of our policy in EU matters.

For quite a few years now, Finland has had stable majority governments, which have sat for the full four-year parliamentary term. This has been especially fortunate considering the deep economic recession that has afflicted us during this decade and the ensuing social problems. We were able to carry through tough cuts in public spending, because there was general understanding that the situation required them. Fortunately, we had in better times created a comprehensive system of social security to take care of those who now found themselves in need. Maintaining this social security umbrella without essentially weakening it has become a burden, but it has spared our society serious harm.

In the Netherlands cooperation between the Government and different interests in society has proved an effective means of ensuring favourable conditions for the economy. This has resulted in brisk economic growth and low unemployment, a situation that other European countries have reason to envy. This "Polder model" may be a very Dutch solution, which is not applicable elsewhere quite as such, but we all can learn from it as we seek solutions to our own problems.

In Finland we had to recognise that there are no simple solutions to unemployment. True, we have managed to bring it down from its peak level to the European average, but that can not be regarded as even nearly satisfactory. We need both economic growth and reforms to be able to create new jobs. This is a familiar situation in several European countries. I am glad that the European Union has placed the question of unemployment high on its agenda.

At its recent meeting in Vienna, the European Council established a Task Force to make proposals for common policies on immigration and asylum seekers. This was prompted by a Dutch initiative, which we supported. The proposals that the Task Force makes will be deliberated by the European Council when it meets in Tampere, Finland. The complex of problems concerned is a difficult one that calls for common action. The Netherlands has taken in very many immigrants and asylum seekers, and the numbers are increasing. It is very important to concentrate on promoting the integration of newcomers into the host society. The number of immigrants in Finland is small, but their social impact is, nevertheless, visible.

This year the EU will have to reach decisions that will affect its further development for years to come. One of the most important relates to Agenda 2000. It is important that the decisions emerge during the German Presidency. That will require all of us to demonstrate a willingness to find a satisfactory solution.

It is absolutely important that momentum be maintained in the process of enlarging the Union. Enlargement is a key question from the perspective of peace and security in our continent and also essential for its vitality. Membership is open to all applicants who meet the requirements. For us the accession of the Baltic States is a central goal. Enlargement must not be rendered difficult artificially nor on questionable grounds.

Events last year meant that many of our forecasts had to be revised - downwards unfortunately. The world economy suffered setbacks, the broadly-based cooperation that had been built up in the course of a decade was put to the test. Our goal must be to strengthen the role of the United Nations in resolving crises. A clearly-defined security order, which does not differentiate between countries must be created in Europe. The stability of our continent shadows the development that takes place within the European Union. Where Finland is concerned, I can say that her international position is now stronger that ever in history.

The situation in Russia is now very difficult. Our neighbouring country is a key variable affecting the security situation in Europe. Its economy has collapsed and its capacity to engage in international cooperation is limited. Political development there has also suffered setbacks. Although we take the view that Russia must learn to help herself in order to receive financial assistance from abroad, I firmly believe that we must do our utmost to integrate the country in European cooperation structures.

Thus we face a busy year. I believe, nevertheless, that a strong will for cooperation will create a good foundation from which Europe can embark in its journey into the new millennium.

I thank you, Mr. Speaker.