journal of european integration history revue d'histoire de l ...

From Isolation to the Core:
Finland's Position towards European Integration, 1960-95
Tapani Paavonen
As a result of World War II Finland fell into the Soviet Union's sphere of influence
in terms of security policy but her social institutions continued to follow the Western
pattern. Even though in an awkward position, Finland participated in the West
European integration process since the late 1950s in line, by and large, with the
European neutrals. Participation in West European integration was, without doubt,
a precondition for the country's development from a backward semi-agrarian country
to an advanced industrial and post-industrial society. Finland's relationship with
the Soviet Union, however, constituted an obstacle to Finland's relations with the
West as long as the Soviet Union existed. Therefore, the Finnish pro-European integration
policies involved special political management with regard to the Soviet
Union.
The basic structures of Finland's post-war manoeuvring room were created in
1944-48. Finland's international position was determined especially by the Truce
Agreement of September 1944, the permanent provisions of which were included
in the Paris Peace Treaty of 1947. Problematic for Finland's international position
during the Cold War were organisations that have been referred to as regional integration.
Finland's decline to participate in the Marshall Plan, July 1947, was an important
precedent for the future Finnish policy vis-à-vis what subsequently was
known as the West European integration process. Remaining outside of the Marshall
Plan, Finland did not become member of the Organization for European Economic
Cooperation (OEEC) nor, consequently, the European Payments Union
(EPU). In the Trade Agreement of December 1947 Finland and the Soviet Union
granted each other “unconditional and unlimited” most favoured nation (MFN)
treatment. 1 This was to complicate later on Finland's participation in free trade arrangements
under Article XXIV of the General Agreement on Tariffs and Trade
(GATT). In the Agreement of Friendship, Cooperation and Mutual Assistance of
April 1948 Finland and the Soviet Union, among other things, pledged “not to conclude
any alliance or join any coalition directed against the other High Contracting
Party”. 2 Consequently, Finland did not join those organisations that were regarded
as anti-Soviet. Thus, Finland did not react in any way to the emergence of the
Council of Europe. Because of the Soviet suspiciousness Finland even avoided
conspicuous appearance in the Nordic framework. Finland, for example, did not
participate in the early negotiations on a Nordic customs union, nor did Finland
join the Nordic Council, which had been established in 1952, until 1955. On the
contrary, those organisations that were at least in principle universal, i.e. acted at
1. K. MÖTTÖLÄ et al. (eds.), Finnish-Soviet Economic Relations, London 1983, Supplement A,
p.250.
2. Ibid., p.248.
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