Ministry for Foreign Affairs emphasises importance of network of diplomatic missions in 2017 budget proposal

Press release 146/2016
12 August 2016

The Ministry for Foreign Affairs’ 2017 budget proposal for its administrative branch totals EUR 1,073 million.

The aim of Finland’s foreign and security policy is to strengthen the country’s international position, safeguard Finland’s independence and territorial integrity and improve the security and wellbeing of people in Finland. Finland promotes international stability, peace, democracy, human rights, the rule of law and equality. The operational priorities of the Ministry for Foreign Affairs are to increase stability in the Baltic Sea region, deepen foreign policy cooperation with Sweden, further develop the policy on the Arctic, strengthen transatlantic cooperation, and mediation.

The security policy situation in Europe is tense, in addition to which there are difficult conflicts, extensive refugee movements, an increase in terrorism and significant global economic challenges, which all require that foreign policy actions be very careful considered. In foreign and security policy it is also important to prepare for future changes that are beyond Finland’s control. Finland seeks to strengthen its security in all circumstances as much in neighbouring regions and in Europe as in wider international cooperation. To enhance security and wellbeing it is necessary that Finland’s economic interests are advanced through trade policy and the Team Finland cooperation, and that sustainable development is promoted and solutions developed for the major global challenges. Active foreign policy that safeguards Finland’s security and wellbeing requires a Foreign Service able to exert its influence and whose expertise the entire state administration can rely on.

Operating expenses

A total of EUR 226 million is proposed for the operating expenses of the Foreign Service.

It is important that Finland has its own network of diplomatic missions. The Foreign Service will focus its resources on those countries whose political and economic significance for Finland is growing. In 2017 Finland’s offices in Bogota, Columbia, and in Yangon, Myanmar, will become embassies. The development of Finland’s representation abroad will continue, taking into account opportunities to cooperate with the Nordic countries, the Baltic countries and the European External Action Service as well as the Team Finland operating model.

Citizens’ services provided by the Foreign Service will be developed on the basis of the revised Consular Services Act and by taking into account the Government action plan on asylum policy as well as digitalisation. Crisis communications will be developed to provide a more realistic picture of the services and responsibilities of the Foreign Service in various crisis situations. In 2017 outsourcing of the receipt of applications for family reunification will be piloted at the Finnish embassy in Ankara, Turkey. The aim is to have a more flexible and efficient customer service and to use resources effectively where there is pressure on demand which may grow further. Following the pilot an assessment will be made of the extent to which the new mode of operation could possibly be introduced more widely, and what its specific form would take.

Finland will hold the Chairmanship of the Arctic Council in 2017–2019. During 2017 preparations will also be made for Finland’s Presidency of the Council of Europe in 2018.

Crisis management

Finland will participate in international crisis management duties with a particular focus on Lebanon, Iraq, Afghanistan, Kosovo, Georgia and Ukraine. In 2017, the number of personnel seconded to military and civilian crisis management tasks is expected to be around 510.

A total of EUR 38 million is proposed for the expenses of the Finnish crisis management troops. The biggest operations are the UNIFIL operation in Lebanon, the training operation in Iraq and the Resolute Support operation in Afghanistan.

A total of EUR 15 million is proposed to be allocated for the participation of civilian personnel in crisis management, of which EUR 450,000 is set aside for mediation. Finland contributes to civilian crisis management mostly through EU operations.

Development cooperation

The Government's development cooperation expenditure in 2017 is estimated to be EUR 876 million; according to current forecasts, this corresponds to approximately 0.40% of gross national income. A total of EUR 535 million is proposed for the ODA administered by the Ministry for Foreign Affairs. In addition to ODA, there will also be an emphasis on developing country investments in the form of financial investments and loans that accord with sustainable development principles. These funds will also be used for financing climate actions in accordance with the United Nations Framework Convention on Climate Change. The Government’s long-term goal is to raise financing for development to 0.7 per cent of gross national income, in accordance with the UN’s objective.

Finland’s development policy and development cooperation are based on implementation of the Agenda 2030 sustainable development action plan outside Finland. This will be achieved by supporting developing countries in the attainment of sustainable development objectives and by promoting changes needed in the global operating environment. In development cooperation the focus will be on the priority areas of the government report: the rights of women and girls and enhancement of their position; advancing the economies of developing countries to increase jobs, businesses and wellbeing; focus on democracy in societies and enhancing their capacity to function, including ability to raise taxes; improving food security and the availability of water and energy, and the sustainable use of natural resources. The performance and effectiveness of development cooperation will be strengthened along with knowledge-based decision making, risk management, measurement of outcomes and impacts, reporting and assessment.

EUR 100 million is proposed for development assistance loans and EUR 30 million for financial investments in development cooperation. EUR 10 million is proposed for increasing the capital of the Finnish Fund for Industrial Cooperation (Finnfund).

Other appropriations

EUR 1.9 million is proposed for Baltic Sea, Barents and Arctic cooperation. This will focus on projects that support Finland’s Chairmanship of the Arctic Council in 2017–2019.

An allocation of EUR 87 million is proposed for membership fees and contributions. Finnish contributions to the UN account for the bulk of this appropriation.

It is estimated that the administrative branch of the Ministry for Foreign Affairs will accrue EUR 30 million in revenues not included in the Ministry’s operating expenses. The revenue sources include visa processing fees, proceeds from the sale of property and refunds of membership fees and contributions to international organisations and of development assistance.

Additional information: Risto Hakoila, Financial Director, tel. +358 295 351 287; Katja Bordi, Head of Financial Planning, tel. +358 295 351 284; Pekka Puustinen, Director General, (development cooperation matters), tel. +358 295 350 560; and Eevamari Laaksonen, acting head of unit (matters concerning Baltic Sea, Barents and Arctic cooperation), tel. tel. +358 295 351 320.