CERCLE DIPLOMATIQUE - issue 01/2018

LE MONDE FINLAND | INTERVIEW
LE MONDE EXPERT´S VIEW
A good year for the Finnish
economy
Albrecht Zimburg, Commercial Counsellor responsible for Finland.
ry: Yes, it is true that the demand for paper,
in particular printing paper, has been reducing.
But on the other hand, demand for
packing material and various kinds of ”intelligent
paper“ is increasing. If you take
this development under one roof, you may
see the importance, Finnish companies are
putting on never-ending innovation processes.
But not only business innovations,
also social innovations matter a lot to us,
like basic income.
Before we go deeper into that outstanding
experiment, can you outline to us the impact of
the EU sanctions against Russia?
You have to remember that the collapse
of the SovietUnion aggravated the already
difficult economic situation in Finland in
the beginning of the 1990s. A big importer
of our products, with a share of almost 20
per cent, practically disappeared. In recent
years, it had not so much been the EU
sanctions but the counter-sanctions by
Russia that have affected our exports,
mainly in the food industry. Now, according
to our latest figures from 2016, Russia
is the 6th or 7th most important export
market for Finland with around 5 to 6 percent
of our total exports. But do not forget,
during the Soviet time in the 1980s, Russia
has made up for up to 24 percent of our exports.
“In terms of the success of our
education system, I would say the
’Gesamtschule’ is one major reason.
And the second is the importance
of teachers in our society.“
Coming back to the topic you already mentioned,
can you give us a picture of what the basic
income experiment, which Finland has started with
the beginning of 2017, with about 2,000 people
from 25 to 65 years old, getting a basic income of
560 Euro per month for a period of two years, is all
about? Are there any conclusions one might draw
out of it yet?
To be honest, I have tried to look for
sort of mid-term reports on this experiment
which aims at improving employment.
But obviously, our authorities are
waiting until the end of this two-year-period
with their analysis and conclusions. But
what I can say is that when this experiment
started, some anxious voices were heard
about ”giving money to people for nothing“.
That kind of comments I haven‘t seen anymore
lately. But we have to wait another
year for the final results.
Do you personally think these 560 Euro are
enough for a basic income?
No, that is certainly below the poverty
line in Finland. But of course, this money
comes on top of other support like unemployment
payments. So it is not the only
money, these persons have available for
their living. Many say that also a group of
2,000 persons might not be big enough, but
if you extended this experiment to the
whole population, it would be far too expensive.
Apart from this basic income experiment, also the
Finnish education system – because of the regular
high results of Finnish pupils in PISA tests – is
very much observed. What would be the main
reasons for this, the early introduction of the
”Gesamtschule“ in Finland, for example?
There is not one single explanation for
this. But all in all, I would say that even
Finland has going down a couple of places,
it still is in the top 5. The Gesamtschule gives
equal opportunities to all children and
is a major reason for these good results.
And, the status of teachers in our society –
in terms of respect, high-level education
and salary are factors here.
Also the participation of a right-winged party, the
former ”The Finns Party“, in the Finnish
government, has been very much observed
internationally. Given the fact that in Austria we
have a similar situation with the Freedom Party,
now being part of our new coalition, what have
been the experiences your country has made with
a populist party in government?
What happened is that the ”The Finns
Party“ has split in two last year, but a majority
of its Members of Parliament continued
in the ruling government. Finland, since
the Second World War, has experienced at
least twice that a populist party was put
into government responsibility. It turned
out that this is a test to a populism. In both
cases, a junior membership in the government
changed the party internally. When
they have government responsibility, they
either change or they lose something, often
their voters‘ support. Many promises, loudly
made to voters in the opposition before
the election, often cannot be hold in the
government‘s real life. That‘s our experience.
That was also why I think ”The Finns
Party“ split into two.
Coming to promises. You have promised to share
with us the true address of the Weihnachtsmann,
who you say is living in Finland. So?
Certainly, here we go. The address of the
Weihnachtsmann‘s is: Santa Claus, Santa
Claus Main Post Office, FI-96930 Arctic
Circle, Finland.
PHOTOS: RALPH MANFREDA
PHOTO: VALERI ANGELOV
Albrecht Zimburg
serves as Commercial
Counsellor in
Stockholm and is also
responsible for Finland
and Norway. Prior to
2012, he was on
postings in Syria,
Bavaria, Egypt and
Nigeria.
”Finland has become an attractive target for Asian investors.“
After several difficult years, the Finnish economy is on the
rise again. With a growth of 2.8%, recent GDP forecasts for
2017 significantly exceed more cautious estimates published
earlier. At the beginning of this year, the Finnish Ministry of
Finance estimates the economic growth for 2018 at 2.1%.
Growth within manufacturing, the service as well as the
construction industry – due to the fast-growing urban areas
– are the main drivers. Private consumption was also a key
element of growth in 2017, but is likely to slow in 2018 due
to an inflationary impact on purchasing power. Investments
in machinery and equipment as well as in construction
projects are the key drivers for this and next year‘s growth.
Due to the sluggish economic situation in recent years, the unemployment rate
rose until 2015, but dropped to 8.7% last year. The currently good situation
encouraged analysts to forecast a further reduction during the next two years.
Finland will focus on improved economic relations with the dynamic Asian
economies for the next few years. In this case, Finland benefits from its relatively
small number of significant exporters, opposite to Austria, which has a more
SME based economy. However, this sector is also growing in Finland with a lively
start-up scene especially in the IT area. Against this background, it is no surprise
that one of the world‘s largest start-up events ”Slush“ takes place in Helsinki.
Finland has also become an attractive target for Asians, e.g. Chinese investors
are leading two major pulp industry projects and a commodity wholesaler from
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Singapore is investing in Terrafame, a company operating a nickel and zinc mine
in northern Finland. Thus, within the foreseeable future, Finland will maintain its
good economic position in Europe. The country‘s leadership is aware of the
current structural problems, yet also of its opportunities to benefit from being a
bridge to the east.
For Austrian exporters, 2017 was a highly successful year. From January until
November 2017, Austrian exports reached a value of 558 million Euro, reflecting
an increase by 11.3%. As in past years, the dominant goods are machinery and
capital goods, increasing by 10.6%. Machines and mechanical equipment only
make up for more than a quarter of all Austrian deliveries, amounting to 124
million Euro. Other significant exports comprise electrical machinery and
equipment (61 million Euro), motor vehicles and automotive components (36
million Euro), organic compounds - mostly chemically pure sugar - (30 million
Euro) as well as plastics and goods thereof (29 million Euro).
Austrian imports from Finland increased by only 0.5% during the first nine
months of 2017. Machinery and equipment – with spare parts dominating – lead
with 56 million Euro, to an increase of 5.6%. For paper and cardboard deliveries
to Austria, a slight upward trend can be observed: +1.3%, reaching 54 million
Euro. Other important product groups are electrical machines with approximately
39 million Euro, wood and goods thereof (39 million Euro) and zinc (23 million
Euro). All in all, this makes up for a very positive – though cautious – outlook on
Finland’s economy, with the ultimate benefit of an increase in exchange of goods
and services with Austria.
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