Minister for Foreign Trade and Development Paula Lehtomäki and Foreign Minister Erkki Tuomioja: After the government spending limits decision the political target is still in force but meeting the challenge remains open

Press release 69/2006
21 March, 2006


As far as the development cooperation appropriations are concerned, the government spending limits decision was not in keeping with our own goals. It became clear before the government spending limits discussion that the government was not willing to make significant increases in expenditure extending beyond the present government's term of office. That is why the government arrived at this kind of an exceptional decision to pass the spending limits baton to the government that will actually have the power over budget decisions in the end of the decade.

In the spending limits discussion, the Ministry for Foreign Affairs aimed at clearing a credible path towards reaching the 0.7 percent goal. It is honest to admit that the decision made was a disappointment in this respect. Still, the first steps down this path have already been taken, and the next signs forward will be laid in the future government negotiations. In other words, this decision as well as the government's earlier decisions to increase the spending keep the 0.7 goal very much alive.

During the term of the Vanhanen Cabinet, the growth in the development cooperation appropriations has been persistent and substantial. During its term, the Cabinet has increased the development cooperation appropriations by 208 million euros, which is more than the increases by the two previous governments combined.

In the forthcoming parliamentary elections, all parties should bring up the sum of money each party is prepared to invest in development cooperation as part of the spending limits to be agreed in the beginning of the electoral period.

The significant growth of development cooperation funding will continue also during the term of the next government, and there are no signs of return to the sluggish rate of growth of the past. Even most of the opposition parties are committed to increasing the development cooperation appropriations, so, in the next government negotiations, a common view is likely to be found between almost whichever government coalition.

The next government will probably reform the government spending limits process both in terms of coverage and the associated processes. Whatever the case, the development cooperation appropriations cannot be raised to 0.7 percent of the gross national income without an additional contribution in a class of its own within the next few years. That is why we should also examine the possibility of detaching the development cooperation expenses based on international engagements from the actual spending limits procedure and making a separate political decision about them.

Additional information: Special Adviser to Minister Lehtomäki Satu Mäki, tel. +358 9 1605 6306, and Special Adviser to Minister Tuomioja Folke Sundman, tel. +358 9 1605 5016.