New Year's Speech by the President of the Republic of Finland on 1 January 2003

Finland recently celebrated the 85th anniversary of her independence. The prosperity that our country enjoys today is founded on the toil of generations. An important milestone in the work of building a more united and stable Europe was reached late last year: ten new countries were given the green light to join the European Union.

However, a period of uncertainty in the world has continued. Wars and acts of terrorism have caused fear and unease. We too are part of a shared world, although there is nothing to indicate that Finland or the Finns face any particular threat.

All of us were deeply shocked by last autumn's bomb explosion in a Vantaa shopping centre, in which seven people were killed and over eighty injured. The event was an individual tragedy, not related to terrorism.

The authorities commendably performed the duties and tasks that the event called for. Individual citizens likewise acted correctly and responsibly. Swift and effective cooperation saved many lives. We have all felt sympathy with the victims and relatives in their grief. Recovery will still be a lengthy process.

We have reason to strengthen our common responsibility for everyday security. Reducing crime and improving security require broadly-based joint action, starting with international cooperation and ending with purely homespun means. Measures taken jointly by local authorities, the economic sector and civil society have yielded good results in combating crime.

It is vital to give children and young adults the wherewithal for a balanced life. The importance of education is continuing to grow. According to some studies, school bullying is on the decline. I believe that changes are being accomplished through tenacious and determined work. It would be good to continue from this basis. All must be guaranteed peace in which to do their work at school, in addition to which this responsible and non-violent behaviour must be extended to leisure time as well.

My appeal applies also to the behaviour of us adults. For example, a protracted and uninterrupted downward trend in traffic fatalities has ended, although it is encouraging that these deaths have been kept to zero in dozens of municipalities. Yet, it appears that selfishness and disregard for safety are becoming increasingly common. The rules of the road are being broken and interpreted selectively according to one's own interests.

This is the EU's European Year of People with Disabilities, the theme of which is non-discrimination and participation. This reminds us that handicapped people have a right to a life of equality. Good legislation and adequate financial support can go a long way towards equality, but being accepted as equals requires also the right attitude on the part of fellow-citizens.

Uncertainty in the world economy persisted last year. In these unstable circumstances our common currency the euro has added stability to our economy, improved its growth opportunities and maintained our competitiveness. Interest rates have been on a low level and balance in the public sector continues to be moderately good. In addition, a comprehensive national incomes agreement has improved conditions for stable economic development.

Thus we are relatively well-placed both to deal with present problems and to prepare for future challenges in our society. The large age cohorts are still in the labour market and our economic situation is comparatively good.

Our Government and the Eduskunta have done sustained work. Over 300,000 new jobs have been created in Finland in the past eight years. That notwithstanding, unemployment is still our biggest social problem. Work is a basic right of every adult. Lowering unemployment remains the most effective way of strengthening our economy at the same time as it will combat inequality and poverty. It has been forecast that the future will see the simultaneous occurrence of both unemployment and persistent labour shortages in some sectors.

I believe the keys to a solution are to be found in improving Finnish education and competence. For my part, I have been trying to encourage people to learn different competences. Lively and open cooperation between universities and other institutions of learning on various levels as well as with the public sector and business life will probably enable us to continue to strengthen our competitiveness and increase prosperity.

The goal in our Nordic welfare society is to take care of all. Change in the age structure of the population will increase the costs of health care and pension expenses. Securing the financial base of the welfare society will require a strong economy.

We have all of the prerequisites for this. We must make sure that Finland remains a good country in which to engage in enterprise and work.

Our country's international position is strong, perhaps stronger than it has ever been since we gained independence. Finland has excellent relations and diversifying cooperation with all of her neighbours. We are active participants in all of the international processes that are important to us.

Our strong position is the result of a consistently pursued security policy, skilled management of foreign policy as well as the non-participation in military alliances that our credible defence makes possible. We Finns can be satisfied with our position and look to the future with calm and confident minds. Drafting of the 2004 report on security and defence policy provides a suitable framework within which to examine the situation in a constantly changing international environment.

In a democracy, a basic prerequisite for a credible security policy is that it enjoys the support of the people. The present policy has that support, and so it must continue to be in the future as well.

The European Union made a historic decision at its Copenhagen summit to admit ten new members in 2004, among them Estonia, Latvia and Lithuania. These new member states still have a lot of reform work ahead of them and it lies in the interests of everyone that we older members help them in it. A well carried through enlargement of the Union will eliminate the dividing line of the Cold War and promote stability, security and prosperity everywhere in Europe. Enlargement always involves difficult decisions and details should be seen in the right proportion to the historic character of the change.

At the same time, the North Atlantic Treaty Organisation reached its decision on enlargement in Prague last November. It is important that these organisations so central to European Security find effective forms of cooperation.

The European Union is also revising its Founding Treaties and its work procedures. The intention is to give the Union a better ability to respond to the needs of citizens and the challenges of enlargement.

What is central from Finland's perspective is that equality between the member states is strengthened and the division of powers between the Union and the member states clarified. In my view, the effectiveness of the Union's external actions should be improved and the capacity of it and its members to manage crises further developed.

As globalisation advances, states are increasingly interdependent. Not even great powers can alone guarantee their citizens' security. We need cooperation for that. The UN Charter gives the United Nations and especially its Security Council the principal responsibility for international peace and security.

I am pleased with the UN's resolute actions in managing crises in the past year. Especially in the cases of two very difficult crises, Afghanistan and Iraq, much has been and remains to be done. The situation is still uncertain. Iraq must unconditionally comply with Security Council resolutions. The initiation of any military measures to ensure this must likewise be decided on in the Security Council.

However, an ability to manage and resolve crises is not enough. Permanent solutions can be built only on strengthening respect for democracy, human rights and the rule of law in every country of the world. We must also remember that people and nature share the same world. In this respect, the World Summit on Sustainable Development in Johannesburg last autumn was a turning point in that it attempted, through practical programmes, to couple together the elimination of poverty from the world and environmental protection.

Despite all the globalisation that surrounds us, the nation-state is the basic unit in making a better world. We Finns are responsible for Finland. The development of society is influenced through participation, which can take very different forms. However, all who participate must respect democracy in both their ends and their means and they must bear responsibility for their own actions.

We have an election year ahead of us. In March the voters will elect their new representatives to the Eduskunta for the next four years. We all have the opportunity to make our voices heard. I appeal to every Finn who has the vote and hope you will exercise this basic civil right.

To conclude, I wish on my own and my husband's behalf to thank all citizens for the numerous messages that we have received from you in the past year. Your support and interest in the management of our common affairs have been important. I wish all of you a good New Year 2003.