Scan Magazine

Dear Readers,

I wish to convey to you warm seasonal greetings from the government and people of Finland at the end of a particularly challenging year for us all.

The economic difficulties of the past 14 months have been equally painful for Finns at home and the growing numbers of young professionals pursuing careers in the United Kingdom. Those affiliated to the City of London and the global financial markets have been particularly affected by the recession and loss of confidence, as too have the many UK-based Finns who serve the vast consumer markets.

A walk down any high street provides evidence of Finland’s trade with the UK. Whether it’s the paper used to print the offering of glossy magazines or the cardboard that goes into the packaging on consumer products, you can be sure much of it emanates from Finland. Roughly a quarter of the P3.6 billion of goods imported by the UK fromFinland in 2008, was paper and cardboard, although once transformed the origin is not always immediately apparent. The recession has also knocked these markets hard.

Even the most visible of Finnish products in the UK, the mobile phone, has not escaped the squeeze. The success of the Nokia brand, which dominates in the UK as it does across the globe, was a key driver behind our exports success in Britain over the last decade.

In 2008, Finnish mobile phone goods worth P991million were imported into the UK, but the decline in consumer confidence has had a negative impact on this market, and it is going to take effort and focus to regain these volumes. Yet there are signals that the worst of the painmight be over for the global economy – and financialmarkets are again showing the kind of vibrancy we have come to know. However, a word of caution: in both Finland and the UK, we are still in stimulus mode and will continue to be so for a while. We must now prepare for the next phase of our economic rehabilitation: fiscal consolidation.

This is going to require increased cooperation across Europe on unpopular measures such as the imposition of higher taxes to reduce public debt and painful cuts in government spending. These steps are vital for our future well being and competitiveness. As a result 2010 is, without doubt, going to be an equally challenging year. For now though I am looking forward to enjoying a restful and peaceful time out with family and friends over Christmas. I hope you are able to do the same.

Best wishes
Matti Vanhanen
Prime Minister of Finland