In a speech to the European Parliament on Wednesday 13 March, the Finnish Prime Minister, Petteri Orpo, asked the European Commission to draw up a strategy to prepare for the various crises that the European Union could face.
This innovative strategy would cover “all sectors of society”, both public and private, said Mr Orpo, highlighting Finland’s extensive experience in preparing for hybrid threats, particularly from neighbouring Russia. He cited, for example, the Kremlin’s use of “migration as a weapon” for destabilisation, while Finland took strict measures to monitor the 3,300 kilometres of border it shares with Russia after the outbreak of Russian military aggression in Ukraine.
“Is specific European legislation enough?” asked the Prime Minister. He also asked that account be taken of the situation of people living in cross-border areas, who are suffering the negative effects of border closures.
Describing himself as a “committed European”, Mr Orpo stressed the importance of the European Union taking responsibility for its own defence and security. This means stepping up aid to Ukraine, particularly military aid, by providing financial support for the development of European arms production. And Ukraine’s accession to the EU will strengthen the EU’s security, he said, convinced that the aid granted to support the Ukrainians is far less than the cost to the EU of a Russian military victory.
Whatever the areas of action, the European Union must “act, not only react”, stressed the Finnish leader.
True to his country’s traditional stance in favour of the internal market, free trade and the rule of law, Mr Orpo urged Europeans to boost economic competitiveness by supporting private initiatives. We need to ‘cut’ the administrative burden, reform the labour market by investing in skills, provide capital to businesses via the EIB, be fiscally responsible and conclude ambitious new free trade agreements, he listed, also advocating a true “Investment Union” to boost the EU’s economic attractiveness.
As for the possibility of a new European loan to finance defence investment, Mr Orpo remained very cautious about this idea, although he did not reject it completely. The EIB should play a greater role in this area, he noted.
Above all, the Finnish Prime Minister warned against exacerbated competition between Member States over State aid. An unequal race in which the richest countries can support their national industries “unfairly” risks undermining the single market, he warned.
At the end of February, Finland and eight other Member States called for a return to fair and undistorted competition within the internal market, with a return to a strict framework for State aid, the rules of which were largely relaxed in response to the Covid-19 pandemic and the energy crisis (see EUROPE 13361/25).
“It is crucial to restore normal State aid rules,” stressed Mr Orpo.
Finland is deeply committed to meeting the EU’s climate objectives, and believes that technological innovation in this area is a source of local employment and economic growth for businesses.
But Mr Orpo called for EU law to focus less on detail and instead set the broad objectives on the basis of rigorous impact assessments. “We need carrots and incentives, not sticks and bureaucracy”, he said, and was applauded at length on this point.
See Mr Orpo’s speech: https://aeur.eu/f/bah (Original version in French by Mathieu Bion)