A New Year message from Prime Minister Matti Vanhanen to the Finnish News Agency

In addition to good news, the outgoing year also brought the kind of news we would rather not hear in Finland. I particularly have in mind the school shooting incident that took place in Jokela on 7 November. The incident left a deep wound in the Finns' sense of security.

Jokela is no longer in the headlines, but the victims’ families continue to live with their grief. To heal the damage, the people of Jokela will need the assistance of both society and their neighbours for years to come.

The coming year will be characterised by joint climate negotiations. Finland wants to shoulder its fair share of these joint efforts. During the spring, the Finnish Government will prepare a report on climate and energy policy. With the report, society will hopefully make a commitment on a wide front to reduce greenhouse gas emissions. We, however, expect our special characteristics and early action in expanding the use of renewable energy to be duly taken into account when the European Commission publishes at the end of January its proposal for the EU’s internal burden sharing with regard to renewable energy and emission reduction objectives as well as the reform of the directive on emissions trading.

We have purposefully worked towards reducing emissions and this work must be continued. So far, we have aimed at maintaining emissions at 1990 levels – now the objective and commitment is to cut emissions significantly. This will require adjustments not only in enterprises and energy production but also in everyday life. Heating and transport systems must be reconsidered. The aim of the car tax reform, for example, is to reduce carbon dioxide emissions from road traffic.

The fostering of environmental sustainability calls for rapid and broad-based measures. The dream of passing nature on to future generations in an equally good, or even better, condition must not be jeopardised.

This dream of passing something over in an improved state applies, in particular, to the Baltic Sea. The Baltic Sea, which is so near and so important to us, has been found to be one of the world’s most polluted seas. It was as recently as last autumn that we received the alarming news of the spread of the comb jellyfish (Mnemiopsis leidyi) in the Baltic Sea. News of swimming waters poisoned by cyanobacteria in the Finnish Archipelago and the Gulf of Finland has become only too familiar.

The concern about the state of the Baltic Sea must be shared by all coastal states and requires a common commitment. There are a number of related action plans, the most recent of which is the action plan of the Helsinki Commission, HELCOM, adopted in November. The goal is to restore the ecological state of the Baltic Sea by 2021.

I have together with President Tarja Halonen sent a new year’s letter to the heads of state or governments of the Baltic Sea coastal states. Our intent is to draw their attention to the importance of the Baltic Sea and its protection. There is a common goal concerning the state of the Baltic Sea, but it requires action and practical measures.

As regards the economy, this is a good and stable time. Maybe the best time in the history of our country. The number of employed people is at a record high and the most severe unemployment is a thing of the past. Unemployment still troubles far too many people, however. One of the Government’s key objectives is to further improve the employment situation. Students can be confident about finding work after studies. Work will be available when we are better able to match jobs and those who want to work. Strong employment also safeguards the future of our welfare society.

In good times, households and businesses invest in reforms and improvements, but they always put some of the good-time income aside. The State does the same. Now we are investing a lot in services and the future, but we are saving some of the extra income by paying off debts accrued in the 1990s.

A crucial issue for our economic success is how our key industries and the service sector perform. Now order books are high and our production capacity in heavy use. This is worth fostering. For a long time now, our forestry sector has had problems that also concern the sector at a global level. The importance of the forestry sector to the success of our economy should not be understated even today. It contributes significantly to our prosperity.

With regard to the economy, the new year will be important. Signs of instability in the world economy have become stronger. As an open economy, we are extremely dependent on the world economy. A small economy like Finland can, however, succeed if it takes good care of national finances. It is now vital to invest in skills at all levels and to focus on the future by ensuring the continued attractiveness of our companies as business partners. Particular far-sightedness will be required in sectors where salary negotiations are open in 2008. Sensible solutions will encourage other sectors of the economy, while conflicts may break the good economic trend altogether.

Based on the result of the March parliamentary election, a new government coalition was established – one of which we had no previous experience. The new Government has started its work in good spirits.

At the end of 2008, citizens will be invited to vote again and elect members to municipal councils. I hope that citizens participate in these elections as actively as possible. The next term in the municipal councils will be exceptionally important. Municipalities need to find the solutions that will safeguard basic services for citizens in an ageing society.

With these thoughts, I wish everyone a Happy New Year.

Matti Vanhanen