Speech by Minister for European Affairs and Ownership Steering Joakim Strand at the Annual Meeting of Heads of Mission on 27 August 2024

Speech by Minister for European Affairs and Ownership Steering Joakim Strand at the Annual Meeting of Heads of Mission in Helsinki on 27 August 2024. Check against delivery.

Esteemed Heads of Mission, distinguished representatives of Finland abroad, dear friends,

We are living in challenging times, both globally and here in Europe.

Important elections have just taken place and will take place later this autumn. Most recently, we held the EU elections in June, and the autumn will bring consequential elections on the other side of the Atlantic. 

The new EU term is getting under way under exceptionally challenging circumstances.

Russia’s illegal war of aggression in Ukraine is well into its third year. Finland’s unwavering support for Ukraine is a given, but supporting Ukraine must also remain the top priority for the EU. This is crucial for our security and the future of Europe as a whole. 

At the same time, great power rivalries, especially between the United States and China, are intensifying. The EU must be able to do better in the global competition for investments, skilled labour, raw materials and technological leadership. We must break away from harmful dependencies and diversify our supply chains. Economic, environmental and societal sustainability are becoming ever more important. 

Dear friends,

Finland’s EU policy has always been based on the premise that a strong and united EU is in Finland’s best interests. When the EU succeeds, we also succeed. A strong and united Europe is now more important than ever, not just from an economic standpoint, but also politically, as a strong geopolitical player.

At the same time, it is clear that need to play an active role in shaping and developing the activities of the EU. EU regulation has a decisive impact on the operating environment of our businesses and on the wellbeing, security, rights and opportunities of our citizens. Finland must be more resolute in promoting its objectives and policy priorities on the EU agenda. 

In influencing EU affairs, we must act in a solutions-oriented, pragmatic, timely and uniform manner. Our work should be guided by our national interests, but it is also important to be constructive and flexible in our national positions. By being part of the solution, we can be most effective in advocating for issues that are important to us. We need to show that we have the keys to the challenges facing the EU, from climate change to geopolitical turbulence and security of supply. 

Most often when we look at the bigger picture, our national interests are very much in line with the general European interest.

In negotiations with the EU, it is usually in Finland’s interest to say “yes, but”, rather than “no”. 
Timely, active advance influence is crucial. Finland’s national messages must be consistent, and we must actively promote them at all levels and in all forums. This is true both in the EU and around the world. 

You, distinguished ambassadors, also play a key role in this work. 

To exert influence effectively, we need to work with our partners from other Member States. We need to be open in seeking out like-minded countries throughout the EU. Who is involved in the cooperation depends on the issue at hand. Alliances can also evolve over time. 

Dear friends,

Finland set its EU policy priorities for the next term well in advance, back in January. They are the following: 1) strengthening Europe's strategic competitiveness, 2) improving comprehensive security, and 3) promoting a clean transition, the bioeconomy and the circular economy.

Based on these priorities, we have actively and successfully contributed to the strategic agenda adopted by the European Council in June and to the programme of the new Commission, the main outlines of which were presented by Commission President von der Leyen in July. These strategic EU-level policies are largely in line with Finland’s policy priorities. That said, we should continue to exert active influence so that our priorities are implemented in earnest.

In exerting this influence, we all – politicians and public officials – have an important role to play.   

When it comes to exerting influence, we also have another major issue ahead of us: the EU multiannual financial framework for 2028–2034, which should contribute to implementing our priorities. The Commission has until the end of June 2025 to submit the next financial framework proposal. Finland outlined its first priorities for exerting influence back in the spring. Here, too, we were among the first Member States to do so. 

Finland will continue as usual as a net contributor. The main premise of Finland’s positions is that the overall level of the financial framework must remain reasonable. However, our position also leaves room to make additional investments in our key priorities if necessary, especially in supporting Ukraine and strengthening comprehensive security, including improving external border security. 

Dear friends,

As I said earlier, Finland is unwavering in its support for Ukraine. For us Finns, this is a given. 

Keeping the EU united in supporting Ukraine is of paramount importance. Finland and the EU are committed to continuing their strong political, economic and military support to Ukraine for as long as it is needed. As Russia’s war of aggression drags on and other challenges, such as the situation in the Middle East, require the EU’s attention, there is a risk that discussions on support for Ukraine will become more difficult and prolonged. But we cannot compromise on this. Supporting Ukraine is an existential question for Finland and for Europe. The Ukrainian people are fighting for all of us.

The EU has to ramp up its military and financial support to Ukraine even further. Support for Ukraine’s energy sector is absolutely critical as winter approaches. Russia has continued its extensive attacks on civilian targets in Ukraine. Damage to the energy sector in particular has been considerable. We Finns know what it’s like to experience a cold winter. 

We also have to continue our support by increasing sanctions and preventing their circumvention. Russia must be held responsible for the destruction it has caused. Proceeds from frozen Russian Central Bank assets in the EU have already been channelled to support Ukraine, with the first instalment of EUR 1.5 billion delivered to Ukraine in July. The EU is currently working together with the G7 to use these funds to leverage a EUR 50 billion loan to Ukraine. Here, too, it is important to proceed quickly.  

To continue our long-term support to Ukraine and ensure that Europe can take responsibility for its own security, we should also invest in deepening defence cooperation, strengthening the European defence industry base and increasing production. This is very much in Finland’s interests and also promotes transatlantic security.  

Within the EU, Finland has also been successful in promoting the broader concept of comprehensive security, preparedness for crises and the Finnish model for security of supply. In this respect, former President Niinistö’s forthcoming report lays the foundation for further work at the EU level. This work has been done at Finland’s initiative, and our idea of a Preparedness Union based on a comprehensive security approach is now included in the Commission President’s political guidelines. This is a new policy area, and creating a foundation for it will require a great deal of discussion. We must continue to seek systematic support for and understanding of the comprehensive approach to preparedness from other Member States in the future. We must also find ways to motivate other Member States to take concrete measures to strengthen preparedness. Things that are a given for us are a completely new way of thinking in most Member States. 

Strengthening comprehensive security is also linked to the situation we are facing at the eastern border. Each Member State must look after the security of its external borders in all situations, and must take into account their importance as the common external borders of the EU. The Commission has shown considerable understanding of the security threat posed by instrumentalised migration into Finland. We will continue to work closely with the Commission to find solutions at the EU level and to secure financial support. The situation with Russia is exceptional and long-lasting, and has considerable impacts. It is clear that the next financial framework has to respond to the exceptional situation at our eastern border. This applies to external border security, military mobility and changes in the socio-economic situation in our eastern border regions. 

We need support from the EU to manage these issues. At the same time, it is important to remember that we are not a “cohesion country”. The forms of support should be carefully considered. This is a question of Finland’s security and that of the EU as a whole, and the 1300-kilometre border with Russia is the decisive factor. 

In the current geopolitical context, EU enlargement plays an even more integral role in improving European security. The future of Ukraine, Moldova and the Western Balkans lies in Europe. In June, the EU made history when it launched accession negotiations with Ukraine and Moldova. We still have a long way to go. EU membership has long-term strategic consequences for applicant countries. Applicant countries need a strong political will and long-term commitment to concrete, lasting reforms and the Union’s common values and policies. The EU membership criteria – such as the rule of law, stable democratic institutions and effective anti-corruption measures – are non-negotiable. Enlargement based on the applicant countries’ own merits strengthens the Union’s security and global standing and creates new opportunities for economic growth and citizens’ wellbeing throughout Europe. 

Dear friends, 

This autumn, we will be discussing more than just challenges, we will also be focusing on the EU’s strategic competitiveness. 

The debate on long-term competitiveness and the development of the single market will thus continue. The forthcoming competitiveness report by former Italian Prime Minister Mario Draghi will provide a basis for further discussions.

The Commission President von der Leyen’s political guidelines convey a strong message of strengthening competitiveness and highlight many of the priorities that are important to us, including deregulation, an emphasis on research and innovation, accelerating private investment through the capital markets union, and a pragmatic approach to continuing the clean transition as part of our work to strengthen competitiveness. 

That said, the guidelines place greater focus on industrial policy objectives than on developing the single market. The reference to a new approach to competition policy, in practice the idea of updating EU competition law in line with the long-term goals of Germany and France, raises serious concerns. 

The EU's strategic competitiveness is now on everyone’s mind and the Member States are quite unanimous in their view that improving it is a key priority. However, views on how to achieve this vary. 

For Finland, it is a given that every Member State must continue to be responsible for its public finances. The EU’s long-term competitiveness should be built on the Union’s strengths – above all, a well-functioning single market based on free movement. Together with a large group of like-minded countries, we have called for a new, comprehensive internal market strategy rather than focusing solely on industrial policy. Our goal of drawing up a horizontal strategy for this in summer 2025 was also recorded in the European Council conclusions back in April.  

Finland has emphasised the need to ensure a level playing field. Flexibilities introduced in the state aid rules in recent years have distorted competition between the Member States. When state aid has too great a role, the best innovations and products cannot win. The real winners, which can also succeed in global competition, can only be found through fair and open competition. Developing genuine competitiveness requires market-based solutions. This is not only good for Europe but for Finland, too, because we will succeed in this competition.   

In Finland’s view, the next financial framework should allocate more funding to strengthening Europe’s strategic competitiveness. Commission President von der Leyen has proposed creating a new competitiveness fund linked to strategic technologies. Finland takes a critical view of introducing new financial instruments. The EU’s financial framework already includes several programmes to support competitiveness, investment and RDI, such as Horizon Europe and InvestEU. 

We should pool these existing instruments together to make EU funding more effective, and we could stand to increase them significantly. 

It is essential for Finland that RDI funding continue to be based on high standards of quality and open competition, not on quotas or regional criteria. We need to select the right strategic priorities and agree on criteria together. EU funding should be used to support activities that lead to genuine renewal and modernisation, for example to promote a clean transition. This is also important from the perspective of security and self-sufficiency.

Finland was among the first to support the Commission’s proposal for a net emission reduction target of 90 per cent by 2040. It is essential that we implement the clean transition in a way that is cost-effective and technology-neutral. Businesses need a stable and predictable operating environment where they are not afraid to invest in innovations and new technologies. We must seek growth and sustainable solutions in areas such as bioeconomy, circular economy and digitalisation. 

As it works to strengthen its self-sufficiency and break away from harmful dependencies, the EU must also remain open to trade and investment. The EU must be able to diversify supply chains, open up new markets and conclude trade agreements more quickly than at present. It would be realistic for future trade agreements to focus more on trade itself. This would also make it easier to get them done. However, we must bear in mind that turning inward is not in the interests of Finland or Europe. 

Bästa åhörare, 

Rättsstatsprincipen är ett ständigt återkommande tema inom EU-politiken. Och diskussionen kring den kommer att fortsätta. 

With respect to rule of law issues, Finland will continue its long-standing policy and promote the rule of law and the fight against corruption in the EU. 

The new Polish Government, which took office last December, has made positive developments that led to the closure of the procedure under Article 7 of TEU with Poland in May of this year. Poland is a key partner for Finland in a variety of fields. It is wonderful that Poland is back on the right track, including in questions related to the rule of law, and is determined to correct the shortcomings observed in that area. Moving forward, developments in the rule of law situation in Poland will be monitored, as in all Member States, within the framework of the Commission’s annual Rule of Law Report.   

The Article 7 procedure concerning Hungary is about respect for the values of the European Union more broadly. The situation in Hungary was last reviewed by the Council in June, just before the start of the Hungarian Presidency. There are still widespread concerns about the fight against corruption, the ability of civil society organisations to operate, media freedom and pluralism, academic freedom and the rights of sexual and gender minorities in Hungary. 

At the same time, Prime Minister Orbán’s actions during the Hungarian Presidency are driving the country into an even starker conflict with the values and interests of the Union and the objectives and operating principles we have agreed on. The situation is highly exceptional. The Presidency of the Council is acting in a way that risks undermining the Union’s effectiveness and unity in international relations. The political messages to Hungary from both Member States and EU institutions have been fairly unambiguous and consistent. I hope these messages are carefully considered in Budapest. Conflict with the Union and other Member States does not serve Hungary’s interests as the Presidency of the Council, nor does it serve Hungary’s interests in the longer term. 

Democracy, the rule of law and fundamental rights cannot be taken for granted, even in Europe. We need to work continuously to defend and promote them. The Commission is integral to this work, but the development of the rule of law in Europe must also be closely monitored in the Council. Open and constructive discussion is crucial. We have heard alarming news from Slovakia about anti-corruption efforts, media freedom and the ability of civil society organisations to operate. Bulgaria has just adopted a new law banning “LGBTQ propaganda” in schools, which is a cause for great concern. 

In other words, we still have a great deal of work to do. 

Comprehensive reforms of the rule of law are also at the heart of the EU’s enlargement policy. There are countries currently involved in the accession process that require significant development with regard to the rule of law, the fight against corruption and the capacity of their administrations. Progress in the negotiations will be determined by a cluster of negotiations on the fundamentals, which will be opened first and closed last. It includes chapters on the judicial system, fundamental rights and public procurement. 

Respect for the rule of law is about more than just language in declarations. In its most concrete form, it involves adopting public procurement rules, taking measures to combat corruption and safeguarding an independent judiciary. 

This is about creating a fair European business environment and ensuring that the EU’s common funds are used appropriately and responsibly. 

When the Member States were agreeing on the EU’s current multiannual financial framework (2021–2027), Finland’s handprint was especially reflected in the Conditionality Regulation, which aims to protect the EU budget from risks arising from shortcomings in the rule of law. I am pleased that the Commission has not been afraid to make use of the Conditionality Regulation. The Commission has also promoted a strong conditionality approach in implementing the Common Provisions Regulation and the Recovery and Resilience Facility. 

Economic conditionality has proved to be the most effective incentive for addressing shortcomings in the rule of law. In the next financial framework, EU funding must be more closely linked to respect for the rule of law, efforts to prevent the misuse of funds and anti-corruption measures. At the same time, of course, it is depressing that we need to resort to economic conditionality to pressure certain Member States to act in accordance with our common values. 

Bästa åhörare,

Vi har alltså många utmaningar framför oss, men förhoppningsvis också många ljusglimtar. Låt oss jobba framåt tillsammans, och inte glömma framtiden framför oss. 

There are challenges ahead of us, but also glimmers of light. Let us continue to work together for Finland and the future. I know we have what it takes, and I know we are proud to represent Finland both in Europe and globally.

Thank you, kiitos, tack.