Ministry for Foreign Affairs 2015 budget proposal

Press release 193/2014
15 September 2014

The budget for 2015 proposes a total of 1,224 million euros for the administrative branch of the Ministry for Foreign Affairs.

The structural shift in world politics and the world economy continues, and economic external relations will continue to gain greater significance. International relations entail the need to be prepared for different crises and disturbances, in the European area as well, as the situation in Ukraine shows. The significance of interdependence increases, and such issues as cyber security, among others, take on greater importance. Citizens, other public administration organs, and enterprises have increased expectations regarding the services provided by the Finnish Foreign Service.

Operating expenses

A total of 255.1 million euros is proposed for the operating expenses of the foreign service.

The goal of the Ministry’s budget proposal is to secure the system of Finnish foreign representation. The importance and coverage of the foreign representation network becomes emphasized in the international exertion of influence. Resources will be concentrated particularly to countries and regions that have increasing political and economic importance for Finland. In restructuring and streamlining the system of Finnish foreign representation, alongside Nordic cooperation, the focus will be on the development of the EU’s External Action Service and the Team Finland operating model.

Consular services will be developed to reflect the changing demands. At the same time, the responsibility of individual citizens is stressed. In the provision of immigration services, the prevention of illegal immigration and human trafficking and in crisis issues, cooperation between authorities and the possibilities offered by Nordic and EU cooperation will be utilized.

In 2015 Finland will chair the Barents Euro-Arctic Council (BEAC) and will host a plenary meeting of the Global Initiative to Combat Nuclear Terrorism (GICNT).

As from 2015, the income obtained from visa processing fees will be gross budgeted and shown in the budget as revenues. Owing to the change, the financing of activities of the administrative branch will no longer depend on market-driven changes in the demand for visas.

Crisis management

Finland is actively involved in international crisis management, the main areas of focus being in Lebanon, Afghanistan, Kosovo, Georgia, Libya, and Ukraine. It is estimated that in 2015 a total of around 660 hired staff will be involved in military and civilian crisis management operations.
It is proposed that 37.2 million euros be allocated for the maintenance costs of Finnish crisis management troops. Following the policy lines specified in 2011–2013, the biggest operations are the UNIFIL mission in Lebanon and the Resolute Support mission in Afghanistan.
It is proposed that 15.4 million euros be allocated for the participation of civilian personnel in crisis management, of which 400,000 euros is set aside for mediation. Finland’s participation in civilian crisis management is directed predominantly through EU operations.

Development cooperation

An estimated 1,015.3 million euros will go for development cooperation expenditure in 2015; according to current forecasts, this corresponds to approximately 0.48% of gross national income. The share of Finland’s gross national income used for development cooperation will thus decline significantly compared to this year, and the appropriation proposed for development cooperation proper will be reduced. A total of 801.4 million euros is proposed for the development cooperation proper. In keeping with the Government’s 2013 spending limits decision, revenue from the auctioning of emissions rights will be channelled to development cooperation and climate financing. The use of emissions trading revenues for this purpose is aimed at increasing Finland’s development cooperation spending in proportion to the GNI. The emissions trading revenues accrued during 2014 will be an estimated 60 million, which represents approximately 0.03 per cent of Finland’s gross national income in 2014. If a corresponding amount in emissions trading revenues accrue to Finland in 2015, it would increase Finland’s share of the gross national income used for development cooperation to more than 0.5 per cent.

Finland’s approach to development policy is ultimately aimed at eradicating extreme poverty and securing a life of human dignity for all in line with the UN Millennium Development Goals. Finland will contribute to strengthening the status of the poor and reducing inequality. Finland’s bilateral activities will focus on the least developed countries of Africa and Asia, and on so-called fragile states. With regard to the UN system, Finland will focus in particular on support for the UN Gender Equality organization UN Women, the United Nations Environment Programme UNEP, and for the UN Population Fund UNFPA.

Development policy is geared to finding solutions to other global challenges as well, such as climate change. In line with the Cancun 2010 agreements, industrialized countries are aiming to raise annual funds of USD 100 billion to finance climate measures in developing countries by the year 2020 . Out of the appropriations for development cooperation included in the 2015 budget proposal, an estimated 87.7 million euros will be allocated to Finnish climate financing.

The sum of 10.0 million euros is proposed for raising the capital of Finnfund (the Finnish Fund for Industrial Cooperation Ltd).

Other appropriations

The budget proposal includes 1.6 million euros for Baltic Sea, Barents and Arctic cooperation. The main focus of these activities will be on Northern Dimension policy and multilateral cooperation in northern region councils, such as the Council of Baltic Sea States, the Barents Euro-Arctic Council and the Arctic Council.
It is proposed that 79.5 million euros be allocated for membership fees and contributions. Finnish contributions to the UN account for the bulk of this appropriation.

It is estimated that the administrative branch of the Ministry for Foreign Affairs will accrue 59.4 million euros in revenues not included in the Ministry’s operating expenditure. These revenue sources include, among others, visa processing fees, wage compensation paid by the UN for military crisis management and joint development cooperation projects.

Additional information: Financial Director Risto Hakoila, tel. +358 295 351 287 and Head of Financial Planning Katja Bordi, tel. +358 295 351 284; for development cooperation, Director Lotta Karlsson, Unit for Administrative and Legal Development Cooperation Matters, tel. +358 295 351 932; and for Baltic, Barents and Arctic region cooperation, Head of Unit Marja Liivala, tel. +358 295 351 727.