THE GEOGRAPHY (Foreign Office UK)
Area: 338,000 sq km
Population: 5,183,545 (July 2003 est.)
Capital City: Helsinki – population
560,000
Language(s): Finnish 93.4% (official),
Swedish 5.9% (official), small Lapp-
and Russian-speaking minorities.
Religions: Religions: Lutheran 89%,
Orthodox 1%.
Currency: euro (EUR)
Major political parties: Composition of
Parliament (out of 200 seats):
Centre - 55 seats/24.7% of total
vote/+7 from 1999 elections
SDP - 53 / 24.5% / +3
Conservative - 40 / 18.5% / -6
Left Alliance - 19 / 9.9% / -1
Green - 14 / 8% / +3
Swedish People's Party - 8 / 4.6% /
-3
Christian Democrats - 7 / 5.3% / -3
True Finns - 3 / 1.6% / +2
Åland Islands - 1 / 0.5% / ---
Government: Republic.
GEOGRAPHY
With a total area of 338,000 square
kilometres, Finland is the fifth largest
country in Europe and is also one of
the most northerly countries in the
world: one quarter of its total area lies
north of the Arctic Circle. The distance
between the northernmost and
southernmost points is 1,160 km.
Relative to its size, Finland has more
lakes than any other country.
The country has land frontiers with
Russia (1,269 km), Norway (716km)
and Sweden (586km), and a coastline
of approximately 1,100km.
Principal commercial centres and
towns and their populations:
Helsinki - approx 560,553 (31
December 2002)
Espoo - approx 217,325 (31 December
2002)
Tampere - approx 198,137 (31
December 2002)
Vantaa - approx 180,240 (31 December
2002)
Turku - approx 173,845 (31 December
2002)
Oulu - approx 123,296 (31 December
2002)
Climate: Winters are long with an
average temperature between 0
degrees Centigrade and -15 degrees
Centigrade. Summer temperatures are
between 16 degrees centigrade and 25
degrees centigrade.
THE HISTORY (Foreign Office UK)
Recent History
The 1990s were dominated by the
collapse of the Soviet Union and
Finland's membership of the EU.
The rapid growth of the 1980s had
been abruptly checked by the collapse
of the Soviet Union (Finland's single
largest trading partner - but on a
clearing basis): between 1991 and 1993,
Finnish GDP fell by 10%, unemployment
quadrupled to 20% and public debt rose
to record levels. This encouraged the
Finns to refocus the economy towards
high technology products aimed at
Western Europe - a decision that has
now paid off handsomely.
The collapse of the Soviet Union
allowed Finland to step out of its
political shadow. Finland saw its
interest's best represented within the
European Union and became a full
member in 1995. Membership of the EU
did not change long standing de-facto
commitment to its non-aligned status.
The Maastricht Treaty did not establish
a military alliance and allowed individual
countries to continue with their own
defence arrangements. Finland
considered these provisions to be
compatible with non-aligned status. In
the second half of 1999, Finland ran a
successful Presidency of the EU.
The previous government,
(1995-2003), led by Paavo Lipponen
pursued economic policies, to meet the
Maastricht Criteria for EMU. This
included reining in public spending and
cutting unemployment benefits despite
strong union opposition. Finland was
among the first wave of EU member
states to agree to adopt the Euro. This
followed a public debate that centred
on Finland's vulnerability to
asymmetric shocks (such as the
collapse of the Russian Rouble in 1998).
As a result of the debate, Finland
developed a unique "buffer fund"
solution under which funds are set
aside against possible future hard
times. Finland became the only Nordic
EU member to adopt the Euro as the
national currency.
The latest government announced its
programme in April 2003. This includes:
Improving the opportunities of people
with lower education and less
specialised skills.
To target reductions in indirect labour
costs. Therefore increasing the
demand for low-paid labour.
To prepare an operational drug policy
for the period of 2004-2007.
Reformed family allowance system in
2004. Raising allowance for first child;
adjusting allowances of single-parent
families; raising home-care allowances;
raising sickness allowance and
parenthood allowances in 2005.
Level of national pension to increase by
2006.
To prevent social exclusion and to
improve people's management skills.
To draw up an immigration policy
programme. Underlining the significant
measures aimed at promoting good
ethnic relations and interaction, and
preventing marginalisation.
Longer Historical Perspective
The earliest Finns lived in isolation until
the Viking incursions around AD 800.
Swedish-Russian rivalry over the area
stamp much of subsequent Finnish
history. For over 500 years, from the
12th century, Finland was a Swedish
dependency. Close Finno-Swedish ties
are today a legacy of those times. In
1809 Finland passed under Russian rule
as a Grand Duchy of the Czar enjoying
a high degree of autonomy. The 19th
century was a period of national
assertion, against the ancient
dominance of the Swedish language,
and from the 1890s against Czarist
measures to impose Russian culture
and political control.
On 6 December 1917 following the
Czar's overthrow, Finland declared its
independence. In the civil war of 1918 a
Finnish-German alliance defeated
Finnish Communist faction and drove
out the Russians. In 1919 the Finnish
Republic was established and a new
constitution introduced. In 1920 Finland
joined the League of Nations. Mutual
suspicions strained Finnish-Soviet
relations in the 1920s and 1930s.
On 30 November 1939 the Soviet Union
invaded Finland, starting the Winter
War concluded with the Treaty of
Moscow in March 1940. In June 1941
Hitler attacked the USSR with
Finland's support (the 'Continuation
War'). In 1944 Finland signed an
Armistice with the USSR. It ceded 12%
of its territory to the Soviet Union and
agreed to pay heavy reparations. In
1947 Finland concluded a Peace Treaty
with the Allied Powers; and in 1948 The
Treaty of Friendship, Co-operation and
Mutual Assistance with the USSR (the
FCMA). It committed Finland to
repelling attacks mounted by Germany
or its allies on Finnish territory or on
the Soviet Union through Finnish
territory. It provided for joint military
consultations in face of an 'established'
threat of attack. In 1955 Finland joined
the Nordic Council and the UN. In 1956
Urho Kekkonen succeeded Paasikivi as
Finland's president, continuing his
foreign policy of combining Finnish
neutrality with special relations with
the USSR (the 'Pasakivi-Kekkonen
Line'). In October 1961 (the 'Note Crisis'
Finland resisted Soviet pressure to
invoke the consultation clause of the
1948 FCMA Treaty. Finland became an
associate member of EFTA in the same
year, joining the OECD in 1967 and
entering agreements with the EEC on
trade and with CMEA on scientific and
economic co-operation in 1973. In 1975
Helsinki was host to the Final Act of
the Conference on Security and
Co-operation in Europe (CSCE), a
tribute to Finland's neutral standing in
the international community. In 1982
Social Democrat Prime Minister Mauno
Koivisto took over the Finnish
presidency committed to maintaining
the Paasikivi-Kekkonenen Line in
foreign policy. Fears of Soviet
objections to the transition proved
groundless. In 1983 the FCMA Treaty
was extended early for a further 20
years. In 1986 Finland became a full
member of EFTA and joined the Council
of Europe in 1989.
THE ECONOMY (Foreign Office UK)
Basic Economic Facts
GDP: US$ 133.5 billion
GDP per head: US$ 25,800
Annual Growth: 2.3% (2003)
Inflation: 1.3% (2003)
Major Industries: Metals and
engineering equipment,
telecommunications, timber and paper
products.
Major trading partners: EU (Germany,
Sweden, UK), Russia, USA
Trade Partners UK country profile:
Finland
INTERNATIONAL RELATIONS
Finland's Relations with Neighbours
Co-operation with the other Nordic
countries is important to Finland, and it
has been a member of the Nordic
Council since 1955. Under the council's
auspices, the Nordic countries have
created a common labour market and
have abolished immigration controls
among themselves. The council also
serves to co-ordinate social and
cultural policies of the participating
countries and has promoted increased
co-operation in many fields.
Finland also focuses on the Baltics
where historical and cultural links are
also strong. Since the Baltic States
regained their independence, Finland
has given considerable aid and technical
assistance, and has supported the
Baltic States accession to the EU.
Under the Finnish Presidency of the
EU both Latvia and Lithuania began
formal negotiations to join the EU.
Finland's Relations with the
International Community
Finland joined the United Nations in 1955
and is well represented in the UN civil
service in proportion to its population
and belongs to several of its specialised
and related agencies. Finnish troops
have participated in UN peacekeeping
activities since 1956 (including in the
Balkans), and the Finns continue to be
one of the largest per capita
contributors of peacekeepers in the
world.
Finland is a keen participant in NATO's
Partnership for Peace Programme and
a strong proponent of the EU's
enhanced Security and Defence Policy.
It is also an observer in the North
Atlantic Co-operation Council.
Finland is a member of the European
Union (and held the EU Presidency in
the second half of 1999).
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