Your excellencies, ladies and gentlemen, good morning!<\/p>\n
First of all, I would like to thank you, Mr. Emmanouilidis, and your team for the
\nreport Re-energising Europe. It is a great contribution to an important discussion on
\nthe future of Europe, to which president Juncker, president Macron and many
\nothers, including the still conditional Grand Coalition deal in Germany, have also
\ncontributed during the last six months.<\/p>\n
The report states that European cooperation is not an ideology, but a necessity.
\nMany of us Finns can agree with that statement, since we are here at the far end of
\nEurope. Our economy is very dependent on exports. Isolation is not an option for us.<\/p>\n
In fact, none of the European countries can flourish on its own. None of us is big
\nenough. We need each other. European Union is far from perfect, but its future
\ndirection is up to its member states and citizens.<\/p>\n
Brexit has forced the remaining EU Member States, the EU27, to think about the
\nvision and mission of the EU after the UK has left. Against all odds, Brexit has pulled
\nus together. Difficulties with Brexit have shown us how bad a choice it is to exit the
\nEU. The future of the UK is unclear; investments and its trade relationships are on hold.<\/p>\n
Fortunately, the negotiations took a turn for the better in December. We can now
\nmove on to talk about the future relationship. The UK is a very highly valued partner
\nfor us, not least in the fields of trade and security co-operation, so it essential that
\nwe get the future relationship right. At the same time, the UK cannot be granted
\nbetter terms than other third countries have on, for example, access to the Single
\nMarket.<\/p>\n
The rise of populism, growing challenges to the rule of law in some Member States
\nas well as UK\u2019s decision to leave the Union are loud alarm bells warning us not to
\ntake the peoples support to the European integration for granted. People will
\nsupport and believe in the EU as long as the EU does things that seem relevant to
\nthem, but this support is not cast in stone. This is something that we, the politicians,
\nmust always keep in mind.<\/p>\n
According to recent studies, Europeans\u2019 trust to the EU has increased. I firmly
\nbelieve we should focus on areas in which the EU can provide more added value to
\nthe EU citizens and member states by acting together. From my point of view, those
\nareas include security, defense, trade, single market and climate change, to name a
\nfew.<\/p>\n
Immigration from Africa to Europe is not going to slow down in the near future.
\nControlling immigration requires creating stability and jobs in countries neighboring
\nthe EU, especially in Africa and the Middle East. This will require EU member states
\nto have a common European asylum policy. We need efficient processing of asylum
\napplications and integration of immigrants plus effective and credible return policy.<\/p>\n
We also need sufficient resources for immigration, border control and police
\nauthorities and judicial system.<\/p>\n
It makes no sense that asylum seekers receive different treatment in different EU
\ncountries. In addition to common migration policy, common EU and bilateral
\nmeasures are also needed in countries of origin and transit to tackle the root causes
\nof migration. Development cooperation also plays a key role.<\/p>\n
The recent decisions to develop EU\u00b4s defense cooperation have had a strong
\nsupport in this country. However, I believe we should soon start to talk about the
\nnext steps taking EU defense cooperation further.<\/p>\n
The mutual assistance clause of the Lisbon Treaty has been activated once. It was
\nafter the 2015 terrorist attacks in France. I find it important to further develop our
\nabilities to assist each other in any possible crisis and in particular military
\naggressions as referred by the Treaty. This in mind, only last year Finland adopted a
\nnew law enabling us to give and receive military assistance.<\/p>\n
Another practical way would be to organize joint exercises where Member States
\nare practicing the use of mutual assistance clause in different situations from hybrid
\nactivities to conventional military operations against one or several Member States.
\nJoint exercises can serve as means to find weaknesses, to develop processes and
\nfinally to increase EU\u2019s credibility as a security entity.<\/p>\n
For a long time, many regarded EU defense cooperation overlapping with NATO.
\nCrisis in Ukraine, recent terrorist attacks and hybrid threats have shown that both,
\nthe EU and NATO are needed and that they can complement each other.
\nFurthermore, there is a great demand for closer EU-NATO cooperation.<\/p>\n
EU budget has to reflect these new priorities. That brings me to the Finnish position
\non the next Multiannual Financial Framework (MFF).<\/p>\n
The next MFF should prepare Europe for the future and be significantly modernized.
\nIt should respond to new priorities and policy challenges, such as migration, internal
\nand external security, and defense. At the same time it must keep on boosting
\neconomic growth, jobs and skills. A key principle must be that all EU spending
\ngenerates real EU added value. More effective use of common funds and the ability
\nto react on changing circumstances are all in our common interests.<\/p>\n
MFF of 27 EU Member States must reflect the reduced financial capacity of the
\nUnion. We cannot ignore the financial impact of Brexit. In the MFF negotiations, we
\nmust ensure that Member States contributions are reasonable and fair. One of the
\nkey questions is therefore the overall level of expenditure of the next MFF. Smaller
\nEU means smaller EU budget.<\/p>\n
We need to reprioritize to balance the situation of new priorities and reduced
\nfinancial capacity. For example, in Cohesion policy the allocation criteria should be
\nreformed to better support our common response to challenges linked to migration.
\nOne other option is to increase the Member States ownership of the funds by
\nemphasizing more strongly the national co-financing in suitable EU policies.<\/p>\n
Some have proposed that we should just fulfill the \u201chole\u201d the UK leaves with
\nincreased contributions from the Member States in addition to reductions in some
\nareas. Now I speak for myself but I strongly feel that we cannot automatically fulfill
\nthe hole in the EU finances just to maintain the level of expenditure of old areas in
\nthe budget.<\/p>\n
However, if we would like to invest more on new areas such as migration, security
\nand defense, I am open to discuss increasing the level of national contributions to
\nEU budget. Having said this, it will be important in any case to reprioritize our
\ncommon budget even if UK\u2019s \u201chole\u201d is not filled at.<\/p>\n
To sum up, we need more efficient use of our resources and we need a shift towards
\nmore results-oriented and influential EU-budget that serves our citizens best.<\/p>\n
When it comes to another topical debate, developing the European Monetary
\nUnion, the report is a very welcome contribution. It proposes forming a package
\ndeal for the future of EU, a deal that brings something to everyone. This is a worthy
\ngoal. We do indeed need a balanced solution. But it is also an ambitious and difficult
\ngoal, partly because the nature and the time frame of the elements are so different.<\/p>\n
Realistically, one grand package will probably be too complicated to handle. But
\nperhaps we will have a number of smaller, but still useful, packages. Of the smaller
\npackages, the most important is the Banking Union.<\/p>\n
Now let me be clear here: Finland wants a full Banking Union. It is a key element of
\nour EMU vision. A no-bailout Europe will never work without a true Banking Union.
\nBut the process of completing the Banking Union must be fair. The Banking Union
\nmust not be used for shifting the cost of past mistakes to others. Those legacy risks
\nmust be tackled first, through national measures. This is a question of basic fairness.<\/p>\n
Ending big sovereign bailouts is a key priority for the Finnish government. This is
\npartly about money, but not only. It is also about Europe. The euro crisis and the big
\nrescue packages were very damaging to the European idea. They fueled antiEuropean
\nforces in the North and South alike. To stay united, we need a different
\napproach to sovereign crisis management, one that does not split us into creditors
\nand debtors for many decades.<\/p>\n
Crisis mechanisms will still be needed in the future, but the scale and duration of
\nprogram financing must be different. Short-term assistance should be available to
\nhelp countries to get back on their feet. But if debt relief is needed, it must come
\nfrom the private investors, the bondholders, not from the taxpayers of other
\ncountries. For that purpose, we need to develop further the European Stability
\nMechanism. The ESM needs better tools to ensure debt sustainability and, if
\nnecessary, orderly restructuring of debt.<\/p>\n
To me as the Finance Minister of Finland, developing the EMU and the MFF
\nnegotiations are the must-win battles of EU politics this year. However, they are still
\nsecondary to a much more fundamental issue: Finland\u2019s position in relation to other
\nEU member states.<\/p>\n
This year can be a landmark for Finnish EU position. It is possible that we come in to
\ncrossroads in which we have to choose, if we want to deepen the European
\nintegration or if we want stay put. It might come in the form of permanent
\nrelocation mechanism, Eurozone budget or something else we cannot anticipate yet.<\/p>\n
Finland might face a choice. Should we take the road to deepening integration or
\nshould we put on the brakes? To me, the answer is absolutely clear. We have to
\nchoose to be in the group that takes the road to deepening European integration
\ndespite the possible short term pinch. In any case, our voice counts and we have the
\nchance to steer the direction of the EU as much as any other member state. We
\nhave like-minded countries in different issues.<\/p>\n
The global challenges facing the EU are substantial. Issues such as migration, climate
\nchange, inequality of wealth and opportunity and the inability of fragile states to
\nrespond to those challenges effectively are on the political agenda in most EU
\nMember States. It should be the EU who takes the lead in addressing these global challenges,
\nfor example in the G20 work.<\/p>\n
The political situation in the United States calls on Europe to take more
\nresponsibility also on the international arena. For instance, the climate issues will
\nremain on the agenda despite the US decision to abandon the Paris climate deal.
\nHere the EU should take the lead.<\/p>\n
Delivering on the Sustainable Development Goals and COP21 commitments as well
\nas fighting the root causes of the refugee crises in a financially constrained
\nenvironment, means finding ways of doing more with less and mobilizing the private
\nsector. In order to share the risk, less should be spent on grants and subsidies and
\nmore on loans and guarantees.<\/p>\n
The EU institutions should play an active role in solving global challenges. The EU
\nshould ensure that its own governance is efficient and show global leadership. The
\nCommission and the European Investment Bank are key players in implementation.<\/p>\n
But good coordination and co-operation is needed by all EU Member States to
\nensure that we share common goals. Finland can also contribute to this goal,
\nparticularly in 2019, when we hold the EU presidency.<\/p>\n
To conclude, let me be clear. Finland needs the European Union and its European
\nfriends. We will not manage on our own, nor does any other EU member state.
\nTogether we are and we can be so much more than each of us alone. Strong
\ncommitment to the EU membership maximizes our global influence. Thus, it is vital
\nthat Finland shapes the future of the EU in the tables where the decisions on
\nEuropean Union\u2019s future are made. United and strong Union is in our interests and
\nwe need to work towards that.<\/p>\n
Mr. Petteri Orpo
\nMinister of Finance of Finland
\nLeader of Kokoomus, the National Coalition Party<\/p>","protected":false},"excerpt":{"rendered":"
Your excellencies, ladies and gentlemen, good morning! First of all, I would like to thank you, Mr. Emmanouilidis, and your team for the report Re-energising Europe. It is a great contribution to an important discussion on the future of Europe, to which president Juncker, president Macron and many others, including the still conditional Grand Coalition […]<\/p>","protected":false},"author":1,"featured_media":1105,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[88,89,90,54,10,91,92,93],"class_list":["post-945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogi","tag-budget","tag-defence","tag-development","tag-eng","tag-eu","tag-immigration","tag-monetary-union","tag-reform"],"yoast_head":"\n