The budget proposal emphasises the necessity of an extensive and well-functioning network of diplomatic missions

Press release 171/2016
15.9.2016

The budget for 2017 proposes a total of EUR 1,067 million for the administrative branch of the Ministry for Foreign Affairs.

The aim of Finland’s foreign and security policy is to strengthen the country’s international position, secure Finland’s independence and territorial integrity, and to improve the security and wellbeing of Finns. Finland promotes international stability, peace, democracy, human rights, the rule of law and equality. The operational priorities of the Ministry for Foreign Affairs are to increase the stability of the Baltic Sea region, deepen foreign policy cooperation with Sweden, develop Arctic policy, strengthen transatlantic cooperation and promote mediation.

The security policy situation in Europe is tense; moreover, difficult conflicts, extensive refugee movements, increased terrorism and major challenges facing the global economy require that foreign policy actions be considered very carefully. Foreign and security policy must also be prepared for future changes that are beyond Finland’s control. Finland strives to strengthen security in neighbouring areas, in Europe and in wider international cooperation. To enhance security and wellbeing, it is necessary to promote Finland’s economic interests. This calls for an active trade policy and Team Finland cooperation, sustainable development and solutions to global challenges.  Effective foreign policy requires a Foreign Service that is able to exert influence and on whose expertise the entire state administration can depend.

Operating expenses

A total of EUR 220 million is proposed for the operating expenses of the Foreign Service.

It is essential that Finland has its own wide and well-functioning network of diplomatic missions. The Foreign Service will focus its resources on countries whose political and economic importance for Finland is growing. In 2017, Finland’s missions in Bogota, Colombia and Yangon, Myanmar will be raised to the status of embassies. In developing Finland’s representation abroad, attention is paid to cooperation potential with the Nordic countries, the Baltic countries and the European External Action Service as well as the Team Finland operating model.

Citizens’ services provided by the Foreign Service will be developed in line with the revised Consular Services Act and by taking both the Government Action Plan on Asylum Policy and digitalisation into consideration. Crisis communications will be developed to provide a more realistic picture of the services and responsibilities of the Foreign Service in various crisis situations. Outsourcing of the reception of applications for family reunification will be piloted at the Embassy of Finland in Ankara, Turkey in 2017. The objective is to achieve more flexible and more efficient customer service and ensure effective use of resources under the pressure of potentially increasing demand. After the pilot, it will be assessed in which form and to what extent the new operating model might be adopted for wider use.

Finland will hold the Chairmanship of the Arctic Council in 2017–2019.

Crisis management

Finland’s international crisis management tasks will focus on Lebanon, Iraq, Afghanistan, Kosovo, Georgia and Ukraine. It is estimated that in 2017, a total of around 510 hired staff will be seconded to military and civilian crisis management tasks.

It is proposed that EUR 38 million be allocated for the expenses of crisis management troops. The largest operations are the UNIFIL mission in Lebanon, the training mission in Iraq and the Resolute Support Mission in Afghanistan.

It is proposed that EUR 15 million be allocated for the participation of civilian personnel in crisis management, of which EUR 450,000 is set aside for mediation. Finland’s participation in civilian crisis management is directed predominantly through EU operations.

Development cooperation

An estimated EUR 881 million will be allocated for the government’s development cooperation expenditure in 2017; according to current forecasts, this corresponds to approximately 0.40 per cent of gross national income. In total, EUR 535 million is proposed for ODA. In addition, EUR 100 million is proposed for development cooperation loans and EUR 30 million for financial investments in development cooperation. The budget proposal includes EUR 10 million to increase the share capital of the Finnish Fund for Industrial Cooperation (Finnfund). The Government’s long-term goal is to raise the financing for development to 0.7 per cent of gross national income, in accordance with the UN’s objective.

Finland’s development policy and cooperation are based on implementation of the Sustainable Development Goals of Agenda 2030 outside Finland. In development cooperation, Finland focuses on four priority areas: 1) the rights of women and girl and enhancement of their position; 2) advancing the economies of developing countries in order to increase jobs, business and wellbeing; 3) strengthening the democracy of societies and enhancing their capacity to function; 4) food security, improvement of access to water and energy, and the sustainable use of natural resources. Measures will be taken to strengthen the impacts and effectiveness of development cooperation, knowledge-based decision-making and risk management, and the measurement, reporting and evaluation of outcomes and impacts.

Finland is a strong proponent of investments in developing countries in keeping with sustainable development so that developing countries’ own economies will be able to generate more jobs, business and wellbeing. Investments will also be used to finance climate action in accordance with the UN Framework Convention on Climate Change.

Other appropriations

The budget proposal includes EUR 1.8 million for Baltic Sea, Barents and Arctic cooperation. Activities will highlight projects that support Finland’s Chairmanship of the Arctic Council in 2017–2019.

It is proposed that EUR 87 million be allocated for membership fees and contributions. Finnish contributions to the UN account for the bulk of this appropriation.

It is proposed that EUR 1.3 million be allocated for the State grants of organisations linked with the administrative branch of the Ministry for Foreign Affairs. Of this, EUR 370,000 is reserved for the Europe information of civil society organisations. Separate application rounds will be held for State grants.

It is estimated that the administrative branch of the Ministry for Foreign Affairs will accrue EUR 30 million in revenue that is not included in the Ministry’s operating expenses. This revenue is derived, for instance, from the handling fees of visas, proceeds from the sale of property and refunds of membership fees and contributions to international organisations and of development assistance.

Inquiries: Risto Hakoila, Financial Director, tel. +358 295 351 287, and Katja Bordi, Head of Financial Planning, tel. +358 295 351 284; for development cooperation, Satu Santala, Director General, tel. +358 295 351 019; for Baltic Sea, Barents and Arctic cooperation, Jaakko Lehtovirta, Director, tel. +358 295 351 784.

The Foreign Ministry's email addresses are of the format [email protected]