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Ministry for Foreign Affairs 2018 budget proposal

Ministry for Foreign Affairs
Publication date 10.8.2017 13.11 | Published in English on 14.8.2017 at 9.30
Press release

Press release 133/2017
10.8.2017

The Ministry for Foreign Affairs’ 2018 budget proposal for its administrative branch totals MEUR 1,079.

Foreign and security policy aims to strengthen Finland’s international position, to secure Finland’s independence and regional integrity as well as to improve the security and welfare of people in Finland.

Finland promotes international stability, peace, democracy, human rights, the rule of law and equality. The Ministry for Foreign Affairs’ operational priorities are strengthening the stability of the Baltic Sea region, consolidating the foreign-policy collaboration between Finland and Sweden, Arctic policies, reinforcing transatlantic cooperation, and mediation.

The strong changes in the operating environment offer Finland both new opportunities and serious concerns.

The speed and unpredictability of the changes are characteristic of the changed environment.

The European Union is the focal framework for Finland’s foreign and security policies and an important security community. The EU’s actions are strongly influenced by Brexit and the internal political developments in many member states. Migration has increased the demands on the EU’s operating capability, as have the weakened security of Europe and the Baltic Sea region and the threat of terrorism and radicalisation. With the changes in environment, Nordic communication and cooperation will become closer, especially between Finland and Sweden. Another aim is to strengthen transatlantic collaboration. The Foreign Ministry builds cooperation and maintains dialogue with Russia, while at the same time influencing EU’s collective policies towards Russia.

Population development and migration, as well as the so-called Fourth Industrial Revolution – including technological development (especially digitalisation), the globalisation of the economy and international value networks – impact Finland both directly and indirectly. At the same time, the measures that restrict world trade and a tendency for introversion are growing. Climate change, the sufficiency of natural resources, food security, poverty and changes in energy production all affect the global operating environment. The polarisations developing between and inside societies increase the risk of conflict. Difficult and often prolonged conflicts and the activities of extremist organisations exacerbate security issues and prevent development in many countries. Terrorism is a serious international problem. Conflicts, poverty and the consequences of climate change increase the number of refugees and the need for humanitarian aid is greater than ever. All this also makes western democracies more vulnerable.

The need for more efficient international cooperation is greater than ever. Active foreign policy, which guarantees security and welfare in Finland, requires a Foreign Service that has the ability to influence and on whose expertise the entire central government can rely.

Operating expenses

A total of MEUR 217.1 is proposed for the operating expenses of the Foreign Service.

The Foreign Service’s key instrument for influence is bilateral and multilateral diplomacy at different levels, based on strong expertise and close networks. The quickly changing environment requires efficient anticipation, monitoring, analysis, sharing of information and flexible use of resources from the Foreign Service.

The Foreign Service pays more and more attention to the utilisation of digitalisation, including the social media as an operating environment. The Foreign Service prioritises its resources towards countries whose political and economic importance for Finland is growing. The structure and operation modes of Finland’s external representation will be developed, taking into account the opportunities for collaboration with other Nordic countries, the Baltic countries and the European External Action Service, as well as the Team Finland operations model.

The Team Finland structures will be operationalised. The role of the missions in promoting export will be reinforced in close cooperation with the forthcoming Business Finland organisation. Within the structure of the new Team Finland network of missions, the heads of missions will take a stronger than previous role as country managers. Practical know-how of export promotion will be improved in the Foreign Service.

The consular services provided by the Foreign Service will be developed, taking into account the amendments to the Consular Services Act and the Government action plan on asylum policy, while at the same time making sure that the services included in the Foreign Service’s duties are a positive factor when competing over international experts who are considering moving to Finland.

Finland will hold the Presidency of the Arctic Council in 2017—2019 and of the Council of Europe in 2018—2019. In 2018, Finland will prepare for its EU Presidency in 2019 and celebrate the 100th anniversary of the Foreign Service.

Crisis management

The focus areas of Finland’s international crisis management are Lebanon, Iraq, Afghanistan, but Finland will also participate in operations in Kosovo, the Mediterranean region and Africa. In 2018, the number of personnel hired for military and civilian crisis management tasks is expected to be approximately 640.

MEUR 53 is proposed for the maintenance costs of Finnish crisis management troops. The largest operations will be the UNIFIL in Lebanon, Resolute Support in Afghanistan and the Mediterranean operation EUNAVFOR MED.

For the participation of civilian personnel in crisis management, MEUR 15.4 is proposed, of which EUR 500,000 will be allocated to mediation. The majority of Finland’s participation in civilian crisis management will take place in EU operations.

Development cooperation

The Government’s development cooperation expenditure in 2018 is estimated to be MEUR 876.8. According to current forecasts, this corresponds to approximately 0.39% of gross national income. A total of MEUR 536.8 is proposed for the ODA administered by the Foreign Ministry. In addition to the actual development cooperation, support for investments in developing countries will be continued with financial investments. These funds will also be used for financing climate actions in accordance with the UN Framework Convention on Climate Change. The Government’s long-term target is to raise its development funding to 0.7% of gross national income, in line with the UN’s target.

Development cooperation is directed at the focus areas mentioned in the Government report: women and girls; the economy of developing countries and sustainable workplaces; democratic and well-functioning societies; sustainable availability of water and energy, and food security. Finland will pay special attention to the rights of girls and women, including reproductive health. Finland will focus on Africa as a region.

Finland’s development policy and cooperation will be based on the implementation of Agenda 2030 for sustainable development outside its borders. This will take place by supporting developing countries in reaching the targets of sustainable development and by supporting the changes needed in a global operating environment.

A total of MEUR 130.0 is proposed for the financial investments of development cooperation. MEUR 10.0 is proposed for the recapitalisation of Finnfund, a fund for industrial cooperation.

Other appropriations

MEUR 1.8 is proposed for cooperation in the Baltic Sea, Barents Sea and the Arctic regions. In these activities, projects that support Finland’s presidency of the Arctic Council in 2017–2019 will be emphasised.

MEUR 90.5 is proposed for membership fees and financial contributions. The majority of the appropriation will be directed at Finland’s contributions to the UN.

It is estimated that the administrative branch of the Ministry for Foreign Affairs will accrue MEUR 33.9 in revenues not included in the Ministry’s operating expenses/expenditure. The revenue sources include, among others, visa processing fees, proceeds from the sale of property, and refunds of membership fees, contributions to international organisations and development cooperation assistance.

For more information contact: Financial Director Risto Hakoila, tel. +358 295 351 287; in matters concerning development cooperation, Director Lotta Karlsson, tel. +358 295 351 932; and in matters concerning development cooperation in the Baltic Sea, Barents Sea and the Arctic regions, Team Leader Birgit Autere, tel. 0295 351 240.

Email addresses for the Ministry of Foreign Affairs take the form of [email protected].

 
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