Prime Minister Petteri Orpo’s New Year’s message, 31 December 2023

Fellow citizens, The coming year will bring plenty of opportunities, but also uncertainties. We have to hope for the best, though it is also wise to prepare for more difficult times.

The most important task of Finland’s state leadership is to strengthen the security of Finland and the people who live here. In April of this year, Finland became a member of NATO. We joined NATO to strengthen our security after Russia attacked Ukraine in February 2022. In December, we signed a bilateral Defence Cooperation Agreement with the United States. The Government will submit its proposal on the agreement to Parliament this coming spring. Once it enters into force, the DCA will complement our NATO membership and further contribute to strengthening Finland’s defence.

Russia’s brutal war of aggression has been ongoing for almost two years now. The war has permanently transformed the security situation in Europe. The Ukrainians have fought bravely for their country, for Europe as a whole and for Western values. The Finnish people and state have maintained their strong support for Ukraine. Our decisions at the national level, such as increasing production capacity for heavy ammunition, make it possible to support Ukraine over the long term. At the same time, we are also strengthening our own defence capability.

Within the European Union, we are working actively to ensure that Europe stands united with Ukraine. The opening of accession negotiations with Ukraine sends a message of hope to the Ukrainian people: Ukraine is welcome to join the European family, and its place is in the EU. By welcoming Ukraine into the Union, the European countries also commit to supporting Ukraine on a long-term basis. 

The violence that began with Hamas’ terrorist attack has led to a humanitarian disaster in Gaza. We are working actively to ensure that civilians receive humanitarian aid, that the hostages are released and that the violence comes to an end. We also support efforts to resolve the Israeli-Palestinian conflict based a two-state model, both in the EU and in the UN.

The problems at our eastern border have not gone away. The Government is monitoring the situation closely and is working on solutions to stop instrumentalised migration. Closing the border has made everyday life more difficult for many people and businesses. However, we have to prioritise the security of Finland and its borders. We will not compromise on this.

In Finland, the economic outlook for the coming year has grown bleaker. 

Finland is a country with a dangerous level of debt. Roughly every eighth euro spent is financed with new debt. Increased interest expenditure, the situation in the wellbeing services counties and essential defence needs are examples of large expenditures that require borrowing. 

We will reduce indebtedness by EUR six billion over the course of the parliamentary term. We need room for manoeuvre in the economy so that we can support people and businesses through difficult times in the future as well. 

All of us have to acknowledge this fact: we are living beyond our means at the expense of future generations. If we do not change directions now, the scale of the measures needed in the future will be many times more drastic.

Finland is committed to complying with EU law. According to the forecast by the Ministry of Finance, we are breaking these jointly agreed rules. Weakening economic growth will cause the deficit to drop below the limit required by EU law.

The Government will already be forced to introduce new adjustment measures to ensure adequate funding for welfare services in the spending limits discussion. The reduction in central government transfers to local government must be compensated within the spending limits. We have already begun to look for solutions. The range of means must be as broad as possible. The principle agreed by the Government, which aims to implement the adjustments in a way that supports employment and growth, offers a good guideline for new solutions. We have to stick to a policy of work.

Cuts alone will not be enough to get us back on our feet.

Ultimately, the permanent solution to our debt problem is employment and economic growth. For this reason, the adjustments should be accompanied by a growth package. We still have many solutions available that leave space for work and entrepreneurship. We can introduce structural reforms to regulation and taxation that do not directly burden general government finances.

Investment intentions are at a historic high. The transition to clean energy offers a genuine opportunity for Finland, and we need to seize this opportunity. If we succeed in repatriating even some of the planned investments, growth will be given the boost it needs.

Despite the difficult economic times, we will invest in a better future: we will improve basic education, increase funding for research and development and shorten waiting times for treatment. 

We have two elections ahead of us in 2024. At the start of the year, we will elect the thirteenth president of independent Finland. In June, we will vote in the European Parliament election. 

Even today, the opportunity to participate in free and fair elections – in democracy – is not a given. Democracy is something we must actively defend. Democracy also means the freedom to disagree. I hope that in the coming year, everyone will exercise this freedom constructively, while respecting others. 

When it comes to big issues, our small nation has shown its strength by being united. Finland and the Finnish people have coped even in the toughest times, and we will do so now, too. 

I wish you all a Happy New Year.

Petteri Orpo
Prime Minister of Finland