(Translation)
SPEECH BY PRESIDENT OF THE REPUBLIC MARTTI AHTISAARI
AT A BUSINESS LEADERS MEETING ARRANGED BY CEOE,
THE CONFEDERATION OF SPANISH INDUSTRY AND EMPLOYERS,
IN MADRID ON 3.2.1999
First of all I wish to extend my most sincere thanks to the
Confederation of Spanish Industry and Employers (CEOE) for
hosting this prestigious gathering. This function with its list
of very senior participants is a clear demonstration of the
excellent all-round cooperation that the CEOE and TT, the
Confederation of Finnish Industry and Employers, have practised
for so long.
I fully agree with the view that the distinguished CEOE Chair
José María Cuevas and his TT counterpart Jukka Härmälä have
presented concerning the need for broader cooperation between our
two countries industrial and corporate sectors. I believe
that this meeting is an important step forward in that respect.
The biggest obstacle to economic cooperation between Finland and
Spain is probably - despite our partnership in the EU -
inadequate knowledge of each others capabilities,
technology and economic potential. Consequently, the primary task
set for this meeting is to increase mutual exchanges of
information in addition to enabling top managerial personnel to
establish or strengthen acquaintances. Looking further ahead, let
us hope that this meeting will also produce ideas for new forms
of cooperation that will benefit the economic sectors of both
countries as well as broaden and stimulate old business contacts.
Finland and Spain have many similar background features as they
develop their economies and societies. They both have their main
market in Europe, and both lie on its periphery. They must
overcome formidable problems and costs relating to communications
and transport, because both are extensive in area. Population is
sparse, distances long and communications networks must cover
islands, water bodies and mountains. Foodstuffs are produced
under unfavourable conditions in both countries. Protecting the
Mediterranean and the Baltic and ensuring their sustainable use
for recreation, fishing and free navigation are matters of
equally vital importance to both of our countries. Parts of the
borders of both countries are on sharp gradients between
standards of living, for which reason effective policies on
neighbouring regions and cooperation in internal and legal
affairs are essential.
For historical reasons, Spain and Finland did not become full
participants in European integration until relatively late.
Finnish membership of the EU - something that also Spain helped
bring about - is of only four full years standing. The
Finnish economy had, however, already had time to adjust to all
of the central demands of integration thanks to our participation
in the European Free Trade Association and our free-trade
agreement with the EEC. Besides that, the five Nordic countries -
Denmark, Sweden, Norway, Iceland and Finland - have had a common
labour market, a passport union and reciprocal social security
arrangements since the 1950s.
The majority of Finns consider our membership of the Union a
positive factor. For as long as the principles of participation
on a basis of equality, balanced harmonisation of interests and
fair sharing of costs are observed, Finland can play a full role
in developing the Union. We want it to become an effective and
global community, which provides its members with the stability,
peace and other conditions they need for development and reflects
this also in the state of its environment. We attach great value
to all aspects of security, including secure economic activities.
Now that we have both adopted the euro as our common currency and
measure of value, we have taken an impressive step forward on the
road of economic integration. There is security in operating with
a common unit of measure and on the basis of regulations that
have already been harmonised to quite an advanced degree. A
credible foundation for investing human and capital resources in
the territory of a Union partner has been created. This benefit
is mutual.
It is only in this decade that our bilateral trade has been freed
of the customs tariffs that were allowed to remain for a
traditional period. And it is only for the past four years that
Union regulations have been in force in relations between Finland
and Spain. Thus it is fair to say that the process of learning
and adjustment that integration calls for is still ongoing, even
though the rules have been in existence for some time.
Trade between Finland and Spain has been growing steadily
throughout the 90s and last year reached record figures: Finnish
exports to Spain totalled about 960 million, whilst our
imports from here were around 500 million.
These figures are impressive, but yet quite marginal against the
backgrounds of both countries overall foreign trade. In
Finlands case, the percentage is around two. Given the
economic potential of both countries, it is clear that there is
plenty of scope for growth in our bilateral trade. This growth
must be encouraged in every suitable way.
The structure of trade between Finland and Spain is quite
traditional; indeed, I would even say that it is one-sided given
the high level of development that both countries have achieved.
Forest products account for more than half of the Finnish export
total. On the other hand, our machinery and equipment have been
capturing new markets at a gratifying pace. Especially high-tech
products like telecommunications equipment have been increasing
their share in recent years.
Finnish imports from Spain have traditionally consisted largely
of agricultural produce, and I cannot fail to praise your wines,
the popularity of which has been growing enormously in Finland.
In recent years, however, the category machinery and equipment
has overtaken agricultural produce, and especially automotive
imports from Spain have been rapidly growing. We have noted with
interest that Spain is now Europes second-biggest car
manufacturer after Germany.
I would like to see Finnish and Spanish companies begin a
fresh-minded search for new areas in which to cooperate. In
particular I want to encourage small and medium enterprises,
whose biggest problem is perhaps that they still lack adequate
knowledge of the country. The significance of the SME sector in
an integrating Europe is substantial also from the perspective of
employment. This is recognised in the economic and social
policies of both Finland and Spain.
The level of investment flows between Finland and Spain is still
unacceptably low. There is a surplus in Finlands favour in
our visible trade, which is of course compensated for by
Spains overwhelming plus in the tourism balance. Spain is
lagging behind where investment is concerned. Dozens of large
Finnish companies have invested in Spain, but so far,
regrettably, Spanish companies have shown quite little interest
in Finland. I believe, however, that thanks to our EU membership
this situation will gradually correct itself. That is because it
lies in the interests of Spanish companies to locate in Finland
and from there project their operations further into northern
Europe, the Baltic States and Russia. I very much hope that you,
our Spanish friends, will give Finland closer consideration than
in the past when you are making country-specific investment
decisions.
As I noted at the banquet hosted by His Majesty on Monday, there
are opportunities for Finland and Spain to cooperate in third
countries. I have already mentioned Finlands advantageous
location as a business centre from which to conduct operations in
northern Europe, the Baltic States and Russia. As the EUs
emerging Northern Dimension - the result of a Finnish initiative
- has shown the other member states, there are immeasurable
resources in this part of the world. It lies in the interests of
every member state that these opportunities are grasped. On this
point, there is agreement between Finland and Spain on the
government level. But that is not enough; a fresh-minded attitude
conducive to cooperation, new visions and ideas are needed also
in the business sector.
Spain has a respected role as the gateway to the Mediterranean
and as a link between Europe and the countries south of the sea.
Finland has given her full support for the Unions
cooperation with Mediterranean countries.
Spain also has quite a central position as a kind of bridge
between the EU and Latin America. It was in this very city that
we heads of state and government from the EU and MERCOSUR member
states met in December 1995 to sign a historic outline agreement.
That the agreement was negotiated so expeditiously was largely
thanks to the Spanish Presidency.
We in Finland have noted the fact that Spain has become the
largest EU investor in Latin America. We know that Spain has
probably had contacts with Latin America for longer than any
other European country. In addition to sharing a language and a
cultural tradition with Latin America, Spaniards have a greater
familiarity with the distinctive business culture of that part of
the world than any other Europeans.
When I visited Brazil, Argentina and Chile in 1997, the first
time that any Finnish head of state had done so, I was greatly
impressed by the opportunities and resources of all kinds that
the continent offered. Finland is one of the many countries that
are increasingly interested in cooperation with Latin America.
Both our government authorities and our companies have been
trying to develop their relations with that part of the world. At
the moment, prospects for the global economy are uncertain and
especially financial markets are unstable, but none of this
lessens Latin Americas importance over the longer term.
That being the case, the question that arises is what Finnish
companies can offer in the line of technology and expertise for
Spanish companies to put to use in Latin America. And conversely,
might experienced Spanish companies and banks be interested in
joining forces with Finns? Are there sectors and projects in
which we could cooperate through arrangements like
joint-ventures?
When cooperation between Finland and Spain is being discussed,
tourism can not be ignored. In this context, I must give full
marks to the Spanish tourism authorities and companies in the
sector for the work that they have been doing in Finland. For
decades, Spain has been the most popular destination for Finnish
tourists after our immediate neighbours. The Finnish Tourist
Board has been doing valuable work throughout this decade to
attract more Spanish tourists to Finland. Although we shall never
be able to compete in numbers, it is encouraging to note that
more and more Spaniards are discovering Finland, her nature and
people.
I hope that also you, distinguished leaders of the Spanish
industrial and business sector, will become more familiar with
Finland as a promising and rewarding partner.
I believe Finland has numerous strengths to offer as an economic
partner. We honour agreements, we have the ability to commit to
goals and we know how to assume responsibility. Besides that, we
take care of our environment, our attitudes to work and saving
are positive, gender equality is a respected principle in our
working life, we have comprehensive social security to look after
those who need it, and our system of collective labour agreements
functions very well. Regulation of working life corresponds well
to practical needs and is done largely through cooperation
between the authorities and various social partners. Its small
size gives the Finnish economy flexibility and an ability to
adjust rapidly to changes in its operating environment.
It has long been recognised in Finland that innovation is a key
success factor. That is why our manufacturing sector, with the
full support of society behind it, encourages research and
development. Indeed, the amount that we spend in this area is one
of the striking features of our economy. Thus, I believe, there
is every justification for saying that Finland is developing into
an information society. For a small country like Finland, the
single market offers a major advantage when it comes to
commercialising innovations on an appropriate scale.
To us Finns, Spain is much more than just a market area in
southern Europe. Within the Union, benefits are reciprocal. We
offer you the opportunity to seek to exploit the comparative
advantages that derive from your strengths, to promote the
worldwide spread of the language you speak and to bring us the
richness of Spanish culture that we find so attractive. You will
certainly also find northern markets attractive, especially when
you examine our position as a base for business operations in
Russia and the Baltic States.
To conclude, let me thank you once again for your friendly
invitation to speak to you.