Finland in the European Union

Finland’s goal is a globally strong and well-functioning European Union that promotes the security, wellbeing and economic interests of its Member States and citizens. Finland is an active, reliable and solution-oriented Member State that works constructively and proactively and takes initiative to advance its objectives.

Finland wants the EU to play big on big issues and small on small ones. Finland expects the Union to respect the principles of subsidiarity and proportionality, meaning that decisions must be made as close to citizens as possible. Finland advocates for a clear division of competences between the Union and the Member States.

History

Finland joined the European Free Trade Association (EFTA) through the FINEFTA association system in 1961, which marked the start of its participation in European integration. Finland concluded a free trade agreement with the European Economic Community (EEC) in 1973 and became a full EFTA Member in 1986. Finland was part of the European Economic Area (EEA) from 1 January 1994 until the end of the same year.

In October 1994, Finland held an advisory referendum in which 56.9 per cent of voters supported Finland’s EU membership. The voter turnout was 74 per cent.

Finland joined the European Union on 1 January 1995. At that time, the EU’s Economic and Monetary Union (EMU) was in its second phase. This phase involved coordinating the economic and fiscal policies of the Member States so that the third phase of EMU, i.e. the transition to a single currency, could be implemented as smoothly as possible.

The third phase of the EMU began in January 1999. This made it possible to use the euro as book money. Euro banknotes and coins, which replaced national currencies such as the Finnish markka, were introduced at the beginning of 2002.

Finland is now one of the 27 EU Member States The ministers in the Finnish Government are also part of the Council of the European Union, and Finland has 15 representatives in the European Parliament. Finland also has a representative on the European Commission.

• Council of the European Union | europa.euLinkki toiselle sivustolle
• European Parliament | europa.euLinkki toiselle sivustolle
• European Commission | europa.euLinkki toiselle sivustolle

EU membership fees (national contributions)

The national contributions from Member States are the largest source of revenue for the European Union. The contributions come from the Member States’ budgets and are based on each country’s Gross National Income (GNI), value added tax base and non-recycled plastic packaging waste. The Member States also collect customs duties on behalf of the Union.

The EU’s annual budget is based on the multiannual financial framework (MFF), which is drawn up for seven years at a time. The current funding period runs from 2021 to 2027.

The multiannual financial framework is agreed on jointly by the Member States, which means that their contributions are ultimately the result of political negotiations.

Finland has been a net contributor to the EU every year except for 1996, 1997 and 2000. Finland’s status as a net contributor means that its payments to the EU are greater than the funds it receives from the EU.

However, Finland’s contribution does not reflect all of the economic benefits of EU membership, such as the open single market.

• EU membership cost Finland EUR 150 per capita last year | Ministry of Finance press release 16 September 2024 (available in Finnish and Swedish)
• The EU budget | Ministry of FinanceLinkki toiselle sivustolle

Relationship between EU legislation and Finnish law

The separation of powers between the European Union and its Member States is based on the principle of conferral, which means that the EU has the power to make decision in areas conferred to it by the Member States. According to the principle, the EU can only act in those areas where its Member States have authorised it to do so.

Everything else falls under the jurisdiction of the Member States. The EU’s competences are thus limited, and their scope varies greatly from sector to sector. For example, the Union has broad competences with regard to agricultural policy but much more limited competences in health policy.

Areas of EU action | europa.euLinkki toiselle sivustolle

Åland in the European Union

Åland’s special status in the European Union is laid down in a separate protocol to Finland’s treaty of accession to the EU. Under Finland’s accession treaty, Åland is not part of the Union’s value added tax or excise duty area. The Åland protocol contains special provisions on the purchase of real estate and the right to conduct business in Åland. It also affirms Åland’s special status under international law.
Åland’s special status under the Act on the Autonomy of Åland is evident when ratifying international agreements and EU treaties. Under the Act on the Autonomy of Åland, the entry into force of a treaty with provisions falling within the competence of Åland must also be approved by the Åland Parliament before the treaty can enter into force in Åland to the extent that it falls within its competence.