Speech by Prime Minister Petteri Orpo at the Meeting of Heads of Mission
Speech by Prime Minister Petteri Orpo at the Annual Meeting of Heads of Mission in Helsinki on 25 August 2025. Speech to be checked against delivery.
Distinguished Ambassadors, dear colleagues at the Ministry for Foreign Affairs,
We are living in the midst of a historic global transformation. We see this firsthand every day.
In the midst of the turmoil, it is important that we continue to look after Finland. We are not just watching from the sidelines, we are exerting influence and advocating for Finland’s interests.
We have networks all over the world. By networks, I mean you. I know that every day, you report, propose and advise. I thank you for that.
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Yesterday, I had the honour of speaking on the steps of Helsinki Cathedral at an event marking Ukrainian independence day. This year’s event felt especially significant.
Finland has been among the fiercest advocates for Ukraine. On this point, I would like to specifically highlight the excellent job President Stubb has been doing on behalf of Ukraine and Europe. I’m sure we have all been watching with pride as Finland has once again punched above its weight on the world stage. What is more, we have done so on an important issue that is so close to the hearts of all Finns.
Ukraine’s security arrangements are moving forward. Finland has been closely involved in building these arrangements. We are at the core of both military and political planning. Once the arrangements become more concrete, we will make national decisions on how Finland will participate. It is clear that Finland will be involved in a manner that suits us.
Ukraine’s army, and efforts to strengthen it, will naturally play a key role in all solutions. It is equally clear that Russia must have no right of veto over Ukraine’s freedom to make its own decisions.
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Russia started the war against Ukraine. After the meetings in Alaska and Washington, it seems certain that Russia has no desire to work towards peace. For this reason, we now have to put so much pressure on Russia that Putin has no choice but to end the war.
Finland is working towards this. The EU must also act, and must shoulder its share of the responsibility. Here is what I think this means:
- The EU must be prepared to impose new sanctions to pressure Russia into a ceasefire.
- Ukraine’s army must be strengthened. One important step in this direction is the immediate release of funds from the European Peace Facility. This requires that all Member States take responsibility and stop blocking the transfer of funds.
- The frozen Russian assets must remain frozen. It would be even more important to allow this EUR 300 billion in capital to be used to rebuild Ukraine and strengthen its army. This is an objective that I have raised and will continue to raise at European Council meetings and other negotiating tables.
- Ukraine’s EU membership is a geostrategic necessity, and Finland supports merit-based progress towards accession. Hungary’s actions are an obstacle to that progress. That is why I am in favour of increasing qualified majority voting on key foreign and security policy issues and opening enlargement negotiations – more streamlined internal decision-making is needed if the EU wants to take on a stronger international role.
And one more thing: the current funding for the EU’s Ukraine Facility will end in 2027, but the need for support will continue. Here is what I propose: we need to build a new, sufficiently large long-term support facility through the EU. It should be similar in scale to the current EUR 50 billion facility.
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When he visited Helsinki last autumn, then-Prime Minister of Ukraine Denys Shmyhal was adamant about visiting the Hakaniemi civil defence shelter. It made a real impression on him. Finland has strong expertise when it comes to civil defence. Knowing this, Ukraine asked us to take on a leading role in developing the country’s civil defence shelters and setting up and overseeing the activities of a new international civil defence coalition. We quickly got to work establishing the international coalition when I visited Kyiv this past spring. As many of you are already aware, we have invited other friends of Ukraine to take part in this coalition. Many countries have already expressed interest.
Here’s my assignment for you: when you return to your host countries, make sure this interest becomes a commitment.
We have also set our sights on Ukraine’s future, on reconstruction. The Ukraine Recovery Conference held this summer in Rome was a good sign that reconstruction is already underway. Even now, reconstruction plays a key role in creating hope and resilience. Ukrainians need to have faith in the future.
The reconstruction of Ukraine is also an opportunity for renewal. It is a way to bring Ukraine closer to EU membership and in line with European standards.
The rebuilding of Ukraine will also be the world's largest construction project. In today’s money, it will be around five times greater than the Marshall Plan enacted after World War II. Fortunately, Finnish companies have taken note of this. I was accompanied by delegates from several major Finnish companies on my visit to Kyiv and at the Recovery Conference in Rome. Finland’s expertise is in high demand. And here, I would like to publicly encourage more companies to seize this opportunity.
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Recently, we have seen the EU come together to strengthen European security and defence like never before. The reason for this is clear – Russia. And we have worked hard to ensure that this is understood throughout Europe.
Although it is fair to say that not all Member States perceive the existential threat posed by Russia in the same way, it is especially important for Finland that the Union is now committed to strengthening common security and defence in a way we could not have imagined a few short years ago. The foundation has now been laid – NATO and EU objectives set and priorities selected – but the practical work is only just beginning.
We Finns know that achieving peace in Ukraine does not mean that Russia will change. Any peace will also give Putin’s Russia an opportunity to gather its strength. How to respond to the threat posed by Russia is not a theoretical question for the EU, it is an existential one. That is why I have emphasised at the EU negotiating tables that we have to do more and faster, and in close coordination with NATO.
When I travel abroad, I often get asked if we in Finland are afraid because of our geographical location. My answer is no, we are not afraid. We are prepared. Finland is a preparedness superpower. I call on all of Europe to adopt the same mindset.
We are moving in the right direction. We have a clear vision. We need to be so strong militarily that we will not have to guess where Russia will strike next. In five years, we need to be so strong that it would not be worth it for Russia to test our will and our ability to defend our territory. We must not drop the ball on this, even after there is peace in Ukraine.
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At this year’s NATO Summit in The Hague, the decision was made to raise the defence appropriation target to five per cent of GDP. Of this, 3.5 per cent is conventional, “hard” defence, while 1.5 per cent consists of expenditures and investments to support it. The Government is committed to this target.
Well before the Summit in The Hague, this past spring, the Government decided to raise the level of defence appropriations to at least three per cent of GDP by 2029. This was a threat-informed decision. We are not raising our defence spending because of Trump. We are doing so because of Putin. This decision made it possible for us to immediately launch the modernisation of our land defence – a reform to which all parties have committed in our Defence Report.
During the spring, we also held a parliamentary debate on defence appropriations. I consider this very important because, as Prime Minister, I am well aware of the huge amounts involved. I am also aware that these commitments are binding not only on this Government, but also on the next one – and the one after that. In questions of this kind, which are essential for our security, we must have as unified a vision and will as possible across political parties.
I will be submitting an announcement on European security and defence to Parliament right at the start of its autumn term.
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Last week, I visited the Uusimaa Brigade and met with conscripts who had begun their military service in the summer. I myself was able to participate in a small part of an exercise alongside the conscripts. It was great to see firsthand how the lessons learned from Ukraine are being put into practice in Finnish conscript training. This applies not only to conscript training but also to the entire Defence Forces, from the training of individual fighters and the procurement of weaponry to strategic planning. This is very important at a time when we are planning future billion-euro investments. We have to make sure we do the right things with this money. I have had discussions on this at all levels of the Defence Forces. I am confident that this is understood and that the work is underway.
While visiting the Uusimaa Brigade, I also met with a representative from the United States Marine Corps. The comprehensive presence of the United States in Finland this autumn is just one example of the active international cooperation we have systematically built with our various allies, be it within NATO, bilaterally or multilaterally.
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The Baltic Sea is a security policy hotspot. The past year has shown how important it is to have smooth, close cooperation with the other countries in the region. Whatever happens in our neighbourhood, we have well-functioning connections available the moment we need them. At both the official and political levels. Even on Christmas Day.
Strengthening NB8 cooperation is an important priority for me. We are more than allies and neighbours, we are friends. Estonian Prime Minister Kristen Michal and I reiterated this point most recently on Friday.
The increased importance of the Baltic Sea is also being recognised elsewhere. When Germany’s new Chancellor Friedrich Merz visited Turku at the Summer Meeting of Nordic Prime Ministers this past May, he said that Germany was now looking north. Our group of Nordic-Baltic heads of state or government that meets before the European Council in Brussels now includes both Poland and Germany. We must build and strengthen this cooperation even further. At all levels.
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Finland’s position as Russia’s neighbour has been acknowledged in the EU: the Union’s next multiannual budget proposes allocating EUR 1.6 billion to Finland for border security – an increase of more than a billion euros from the previous period. This is a significant political victory and a sign of successful advocacy. The way I see it, this funding can also be used to safeguard the vitality of eastern and northern Finland, as this is a central part of our comprehensive security strategy.
The EU budget negotiations will continue for the next two years, and defence, border security and research are Finland’s key themes. The starting point for financing the EU’s defence is the need to respond to the permanent threat posed by Russia. The Commission’s budget proposal puts particular emphasis on the financing criteria for countries that share a border with Russia.
The proposal also expands the Horizon research programme, which is important for Finland. Its size has been almost doubled, and its content is exactly what we wanted. The EU is also investing more than ever in military mobility and defence research. Finland has a lot of opportunities here, especially when it comes to military mobility.
All of this is the result of successful preparation and consistent engagement with the European Commission.
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But we are not just looking at our own neighbourhood. The appalling humanitarian situation in Gaza, in particular, is being very actively discussed by the state leadership responsible for foreign and security policy.
I have condemned the continued military actions in Gaza. These actions are no way to promote peace.
The Government is not watching the suffering in Gaza from the sidelines. We will be allocating additional resources to alleviate the acute distress in Gaza. I have asked the ministries this week to look into the most effective way to help. This also includes examining whether it would be possible for us to bring Palestinian children in need of hospital care to Finland.
The initiative of France and Saudi Arabia has reactivated international debate on the two-state solution. For many, this comes down to recognising Palestinian statehood. But the question is broader than that. Our focus is now on supporting a two-state solution. How we can create the conditions for it.
We act as part of the EU – it is important for us that the EU maintain its ability to work on this issue, too, and that it not remain a bystander. Our next milestone here will be Gymnich meeting of foreign affairs ministers at the end of the week.
We also act at the global level. At the international conference on Palestine in New York in July, Minister for Foreign Affairs Elina Valtonen signed an appeal drawn up at the initiative of France on Finland’s behalf.
At the New York meeting, it was important that the declaration – which is different from the appeal I just mentioned – was approved by the key Arab countries in the region at the initial stage. In my view, a successful and sustainable two-state solution will also require action from the Arab countries in the region.
We can only recognise Palestinian statehood once, so we have to make that decision carefully. The Government has a big responsibility here.
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Now I will say a few words about EU policy.
In EU policy, boosting growth is our top priority, along with strengthening security. Serious efforts are now underway to strengthen the single market and improve competitiveness. Unnecessary, burdensome regulation is being dismantled at a record pace.
But Europe has yet to achieve its full growth potential, and that potential should be mobilised. We have a significant single market. It has huge potential that needs to be exploited. Without a more competitive Europe, we will not be able to take care of our defence or security.
The IMF estimates that removing ten per cent of barriers in the single market could increase the EU’s gross domestic product by seven per cent. A targeted single market package – aiming for better movement of capital and labour and deeper energy integration – could increase GDP by about three per cent and compensate for the negative growth effects of US tariffs many times over. More closely integrated internal trade is also more secure, and plays an important role in strengthening our resilience.
EU regulation has been a key issue in recent years. The current Commission is working to simplify regulation, and Finland strongly supports this work. We are also calling on the Commission to find new ways to ease regulation that is harmful to companies and will be presenting our proposals in a letter this autumn.
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At the EU negotiating tables, there is a dividing line in competitiveness policy between traditional and renewal industries. It is important to keep manufacturing jobs in Europe, but we should also seek new growth through critical technologies. Europe is currently lagging behind both China and especially the United States when it comes to innovating and adopting new technologies.
Europe has to gain new momentum. In the race for new technologies, we are still in the first leg of the marathon, and although our competitors have taken the lead, there’s no telling who will be the first to cross the finish line.
Finland has some good cards up its sleeve in this competition. We have expertise in network technologies, quantum computing, artificial intelligence, microchips, space technologies such as satellites, and high-performance computing. The EU has also identified these as critical sectors where growth is being sought and competence strengthened. In the Western Hemisphere, Europe is currently a leader only in network technologies.
To succeed in the global competition, we have to be technologically strong. That way we can break away from dependencies and get others to listen to us. We need to have something that others want – beyond beautiful architecture, long holidays and interesting museums.
At the same time, climate policy and the clean transition have not gone away. The 90 per cent emission reduction target is our strategy and we are committed to it – this is also our consistent message to the business world. And the implementation needs to be flexible and technology neutral – with a focus on competitiveness. Electrification is a megatrend that will reduce our dependence on imported energy.
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So far, we have been able to deal with trade policy challenges reasonably well. The EU and the United States have reached an agreement on tariffs that is far from perfect but still much better than we feared. This is not the end of negotiations, it is the start of a new phase. Based on the Memorandum of Understanding signed last week, we are now in a better position than a month ago. Our aim is to ensure good import and export conditions for Finnish companies while maintaining long-term predictability.
Faced with uncertainty in trade policy, the EU can provide significant added value. Our next steps are to conclude the agreements we have already finalised in practice – Mercosur and Mexico – and open doors to new markets. We are making promising progress on negotiations with countries such as India, Australia, Indonesia and the United Arab Emirates; India, in particular, is an important market for the EU.
This is a good direction for Finland. Trade agreements open up export opportunities, lay down clear ground rules and remove barriers to market access – at a time when many countries’ relations with the United States are becoming more challenging. These agreements will diversify production and supply chains and strengthen Finland’s security of supply.
At the moment, around half a million workplaces in Finland are directly or indirectly dependent on exports promoted through trade agreements.
Our companies and our experts have a lot to offer. So I want to challenge you, distinguished Ambassadors: how can Finland and our companies make the best use of these new trade policy dynamics? Every mission should assess what new opportunities are opening up and where there is demand in your target country. We need a clear picture of the market – and a clear idea of how to translate Finland’s strengths into growth.
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At previous meetings of heads of missions, I have usually discussed the current situation in Finland. I thought I would do so this year, too.
Our Government is now halfway through its term. So far, we have implemented a significant portion of the Government Programme. We have continued to make Finland’s security a top priority. We have made sure that education and research, the keys to our future, are secure. We have implemented an extensive labour market reform.
At the moment, there are two views on Finland's economy. One is of deeply indebted general government finances that cost more than we can afford. The problems in general government finances are so profound and structural that it will take at least the next parliamentary term to correct them. This despite the fact that this Government has already made decisions to adjust finances to the tune of nearly EUR 10 billion. These decisions have prevented Finland’s debt from taking an unmanageable turn. After our credit rating dropped, new adjustment measures were taken once again.
But there is also the other side, the real economy, economic growth. In this area, I have good news for you. Based on this summer’s figures, the economy has finally started to really grow. Private consumption has started to grow, export companies’ order books are filling up, the worst times in the construction sector are now behind us, and investments are picking up again.
The Government has made a historic number of decisions to improve the conditions for economic growth. We have reformed the labour market, social security and taxation. We have streamlined permiting processes and gotten rid of excess bureaucracy. We have invested in new technologies, such as 6G, supercomputers, quantum computing, artificial intelligence, space technology and more.
In other words, we have put the foundations of the economy in order. We have created good conditions for growth.
In addition, we were able to make even more significant decisions in the Room for Growth project this past spring. We decided to lower the withholding tax on key personnel to 25 per cent so that our companies can attract international talent competitively. A new tax concession is also being introduced for companies returning to Finland. The highest marginal tax rates in earned income taxation will be lowered to 52 per cent, reducing one of the highest progressive tax rates in the world. The corporate tax rate will fall to 18 per cent, which will make it possible for our companies to invest and grow. And make Finland a more profitable target for investments. The Government has also decided to continue the tax incentive for the clean transition so that we can succeed in the global competition for industrial-scale investments.
We have increased the number of training programmes in English and have streamlined work-based immigration processes. We are making historic investments in research and development.
Why am I telling you all this? Because this is my next message to you. We have made reforms that we hope will attract both international investments and international talents to Finland. But no one will know about these reforms unless we tell them. We have done a lot of things, you have a right to be excited about them. So this is my assignment for you. We have the opportunity to attract the most interesting startups and experts if we see this through.
Esteemed Ambassadors,
In this time of global turmoil, it is especially important to keep a cool head. Sometimes that requires the perseverance we call sisu and the Finnish superpower: common sense. At the same time, it is important to remember that you, dear Ambassadors, represent the best country in the world according to many indicators.
We are all well aware that Finland has been ranked the happiest country in the world for eight years in a row. This summer, I also had the pleasure of presenting Finland’s 2030 Agenda Voluntary National Review at the UN High-Level Political Forum on Sustainable Development in New York. And yes, Finland is also the world leader in sustainable development for the fifth year running. In other words, we have many reasons to fly the Finnish flag with pride. Thank you very much.