PRESENTATION BY THE PRESIDENT OF THE REPUBLIC OF FINLAND,
MR. MARTTI AHTISAARI AT THE MATÍAS ROMERO INSTITUTE IN MÉXICO CITY ON 23.2.1999

"FINLAND, EUROPE AND THE CHALLENGES OF THE GLOBALISED WORLD"

It is a great honour for me to be invited to address such a prestigious body as the Matías Romero Institute. This visit has once again brought home to me how little geographical distance nowadays means. Although we may seem remote from each other on the map, the matters that we have to deal with in our everyday work are often the same. We share a shrinking world.

During the Cold War we became accustomed to seeing the world as being divided into two camps. The dividing line was quite artificial even then. Now, in the present decade, economic globalisation has finally dissolved the old Cold War configuration. Yet, we can still discern a division into a global South, to which Mexico belongs, and a global North, in which Finland lies. Although this dividing line, too, is largely artificial, a task that we have in common is that of addressing the problems that accompany globalisation. One is the fact that different states have unequal opportunities to avail themselves of the benefits that globalisation brings. As Blanca Heredia has pointed out, globalisation is further deepening the gulf between developing countries. By this she means that within the South inequality between different countries is actually growing. It is a concern that we have to take seriously. There must be a balanced distribution of the fruits of development throughout the world community.

The European Union has been the prime mover in the integration of our continent ever since the early 1950s. After two world wars within thirty years, the mood in Western Europe had become ripe for a new kind of approach: security and prosperity would henceforth be sought through collective actions rather than only through national policies and at other nations’ expense. Those ancient rivals Germany and France joined forces with Italy, the Netherlands, Belgium and Luxembourg to form the European Coal and Steel Community. Combining basic economic interests was seen as a good way to guarantee balanced relations between the member states.

The course of development that has led from the six-member Coal and Steel Community to the present European Union has been long, and with many twists and turns. The best proof of the success of the integration formula has been the way the number of member states has grown. When Finland joined together with Sweden and Austria four years ago, the total increased to 15. Now the Union is a single market with a population of well over 300 million and it is also a political community.

Foreign trade and unimpeded access to export markets have been important for the Finnish economy. From our perspective, it is vitally important that liberalisation of world trade continues.

European integration has been advancing on two levels for a long time now: the number of countries participating in it has gradually grown, and parallel to this the character of cooperation has broadened and deepened. What was originally an economic community is becoming more and more a union with common policies in several sectors, such as the environment, agriculture, social standards and legal and home affairs.

The ending of the Cold War added momentum to European integration. Joining the European Union was a natural step for Finland in the early 1990s. We wanted to work together with countries like ourselves, Western parliamentary democracies and welfare states. And we wanted to have a role, both economic and political, in the dynamism of integration.

Finnish membership has also added a new feature to the Union in the form of a common border nearly 1,300 kilometres long with Russia. This has created a new situation for Finland as well, because now we no longer encounter Russia on a bilateral basis only. The Union has approached its new immediate neighbour within a framework of broad cooperation, which is enshrined in a Partnership and Cooperation Agreement.

Membership of the European Union is an enormous challenge for a country of only five million people. When Finland and Sweden joined, it meant more than just geographical enlargement of the Union. That is because the new northern members have been able to project their cultural and social values into the work of the Union. One example of this is our old and solid tradition of gender equality in education, working life and also politics. With our membership, the theme of equality has acquired a new content in the world of the Union.

Finland will assume the Presidency of the European Union at the beginning of July. What kind of Union will we be taking charge of for those six months?

Compared with other regional economic blocs, such as ASEAN or even Mercosur, the EU is sui generis, one of a kind. Today, on the threshold of the 21^st century, it is developing into a more coherent region of political cooperation and has the potential to create a common or at least more uniform foreign and security policy. However, the Union is not by any means a substitute for its member states. Over the next few years, it will probably continue to develop as a political community of this kind, without being in a position to transfer substantially more power from national governments to joint institutions.

Nevertheless, even in its present status as a civilian power, the European Union is an influential force in the international community and more and more distinctly one of the power centres within it. There are sectors of international cooperation where the Union has become a central actor. Examples include environmental protection, development aid, and trade liberalisation talks. Especially in the field of development aid, the Union has become a trail-blazer for the rest of the world.

Three factors will increase the international importance of the EU from now on.

First of all, its role in the global economy and trade is being accentuated, a process to which the Euro is making a big contribution.

Secondly, the Treaty of Amsterdam, which enters into force at the beginning of next summer, will provide new means of developing the Union’s common foreign and security policy.

Thirdly, enlargement will further consolidate the Union’s status as the anchor of prosperity and security in our continent. I expect that within a certain time frame more than ten new members will join the present 15.

Finland was the only Nordic country among the 11 that formed the Euro Zone at the beginning of this year. In the year 2002 the Euro will replace national currencies for ever. Already now, even the anticipation of the single currency has lowered interest rates and stimulated growth. I know that here in Mexico I need not convince anyone of how important currency stability is for an economy’s development. A matter of crucial importance from here on in is that all of the countries in the Euro Zone keep to the agreed economic criteria. That will not be at all easy.

The Euro is rapidly becoming a central world currency alongside the Dollar. It is simply creating a new kind of Europe, not a new superpower, but an economic power of the magnitude of the United States. With the help of the Euro it will probably also be possible to bring stability to the world’s nervous money markets, something from which everyone would gain.

Work to develop the Union’s common foreign and security policy is continuing. In fact, several common strategies are under development. The concentration in the initial stage has been on shaping a strategy towards Russia. The economic crisis and many political difficulties there are a considerable uncertainty factor in Europe. That has also had ripple effects on international financial markets.

Strategies in the pipeline include those on Ukraine and the Mediterranean, and others relating to human rights and disarmament may be added. Through these strategies, the Union’s network of cooperation links will eventually become global in scope. At the same time there will be a strengthening of the Union’s capacity to prevent crises and manage them, also using military means.

This suits the present security situation. The risk of armed clashes between European states has substantially declined. By contrast, military risks and threats are inherent in the ethnic and social conflicts that are plaguing some of the countries in transition. International cooperation is needed to prevent and manage them. I can mention in this context that Finland has contributed over 35,000 men to international peacekeeping operations since the Second World War.

The European Union’s great strategic task relates to promoting enlargement. In any event, enlargement will be a historic and demanding process. Only its successful conclusion some time in the next decade will show what the significance of the European Union is to be not only in Europe, but also globally.

I shall now turn my attention to some of the tasks relating to international cooperation that will be in the foreground during the Finnish Presidency. The international community is in a state of fundamental transformation as we step towards the threshold of the new millennium. The country serving in the Presidency is responsible first and foremost for taking care of the Union’s shared projects, but every Presidency has its own natural accents.

First of all, we want to continue the Union’s development as an influential regional actor. In this respect, the Finnish Government’s initiative concerning a Northern Dimension of the Union is important. It is intended to create a more coherent policy on the northern regions of the Union and develop cooperation with Russia.

Secondly, when Finland holds the Presidency and is therefore also representing the Euro Zone, we shall want to promote stability and growth in the global economy by means of measures on the part of the IMF and the G-7. The WTO’s Millennium Round talks will be beginning during the Finnish Presidency. They will be aimed at achieving further liberalisation of world trade and the intention will be to concentrate on the issues that are essential in this respect. Another economic project that I would like to mention separately is the EU’s development cooperation agreement, the Lomé Convention. Negotiations to revise the Convention will begin during the Finnish Presidency.

Thirdly, we want to make our contribution to crisis management in the international community. The Union is making every effort to develop its ability to act as a negotiator and mediator in crises not only in its own region, but also further afield if need be. We need broad international cooperation to prevent many international crises and mediate in those that do erupt.

Fourthly, the EU must create means of countering new security risks, such as crime, environmental hazards and terrorism. An extra EU summit specially devoted to the fight against crime will take place in Finland in the autumn of this year. In 1995 I put forward the idea of a summit between the EU, Russia and the United States. Cooperation of that kind would enable us to join forces in combatting terrorism and crime as well as in environmental projects. It is clear that these three actors, however different they may be, will have to develop their dealings with each other in any case.

To conclude, I would like to examine relations between Europe and Mexico. Your country’s international importance is increasing all the time, and your central position in regional cooperation accentuates it. For that reason, contacts between the European Union and Mexico are constantly becoming closer and assuming new forms.

The European Union is keen to develop its relations with Latin America. In addition to liberalising trade and eliminating barriers to it, our cooperation includes also a wide-ranging political dialogue and cultural exchange. Given the importance of Mexico’s ties of history, language and culture with Europe, it is natural that reinforcing them is an area of emphasis for your Government.

The Government of Finland has a very positive attitude to the development of relations between Europe and Mexico. We were the first member state to ratify the framework agreement that was signed by the European Union and Mexico in December 1997 and on the basis of which negotiations for a free-trade agreement are now being conducted.

When we hold the EU Presidency, we shall do everything in our power - true to our strong basic belief in free trade - to ensure that a comprehensive, balanced agreement satisfying both parties is reached as quickly as possible. I believe this accords with the interests of our industrial sectors.

In the field of development cooperation, we have a joint project, because yesterday a protocol-of-intent was signed by Finland, Mexico and Guatemala with the aim of improving the living conditions of the indigenous population in border areas of your southern neighbour. We saw a concrete demonstration of your solidarity and close relations with Central American countries last autumn, when Mexico was a major driving force in getting international relief operations under way in the wake of Hurricane Mitch.

The first summit meeting between the European Union and Latin American and Caribbean countries will take place in Rio de Janeiro in June. As the current chair of the Rio Group, Mexico has an important role in preparations for this historic gathering. Finland hopes the summit will produce concrete recommendations and guidelines concerning closer relations between Europe and Latin America as well as proposals for tangible projects. The latter could relate to such matters as strengthening the rule of law and human rights and intensifying the battle against poverty and drugs.

From the perspective of Finland and Europe, the challenges of a globalising world do not relate solely to abstract ideas, but also to action of a very practical character. It gives me great satisfaction to note that during this visit both I and the delegation accompanying me have an opportunity to do this concrete work to strengthen cooperation between our countries and continents.

Thank you for your attentiveness.