Ministry for Foreign Affairs draft budget for the year 2005

Press Release 157/2004
30 July 2004


In the draft budget submitted to the Ministry of Finance, the Ministry for Foreign Affairs proposes a budget totalling EUR 823.6 million for its administrative sector for the year 2005. This figure exceeds the Government’s budget framework for the Foreign Ministry’s administrative sector by EUR 8.7 million. Of the Foreign Ministry’s proposals in excess of the Government’s budget framework, EUR 5.8 million is proposed for membership fees, EUR 1.2 million is proposed for building projects, EUR 1.0 million is proposed for operational expenditure – of which EUR 0.8 million in transfer from the Ministry of the Interior’s main title of expenditure – and EUR 0.7 million is proposed for neighbouring area cooperation.

In 2005, activities of the Ministry for Foreign Affairs will be grounded in the Ministry’s strategy outlines extending to 2010 and drawn up this year. The foreign service’s central objectives, defined on the basis of the strategy, are to:

- strengthen Finland’s international position and to improve the international operating conditions of the economy;
- promote Finnish interests and Finnishness throughout the world;
- enhance stability, security and cooperation in neighbouring areas;
- support the enlargement and development of the European Union;
- ensure international stability, security and well-being, and to develop globalisation management.

The foreign service works to achieve these objectives in all its activities, and resources are allocated accordingly. The Ministry for Foreign Affairs strives to monitor the achievement of these objectives by developing assessment methods for effectiveness and results.

A total of EUR 176 million is proposed for the Ministry’s operational expenditure. In order to maintain the current network of foreign missions and to enable more effective political preparation, administration will be streamlined by 25 person-years.

The Ministry for Foreign Affairs proposes a total sum of EUR 600.1 million for development cooperation, a figure representing 0.39 per cent of the gross national income (GNI). EUR 460.2 million of these appropriations is proposed for the foreign service’s main title of expenditure. The overall increase compared against the figure for development cooperation in 2004 is EUR 54.4 million, which corresponds with the growth in appropriations approved in the Government’s development policy programme in February. The intention, according to the programme, is to increase appropriations for development cooperation by approximately EUR 220 million during the current Government’s term of office. At the present GNI estimates, the level of 0.44 per cent of GNI would be reached in the year 2007. Finland is committed to the goals of the UN Millennium Declaration, the most important of which is alleviation of abject poverty and hunger. The effectiveness of cooperation is increased, inter alia, by its concentration on fewer countries, on major organisations and on more extensive programmes. Alongside development cooperation, efforts to ameliorate the position of developing countries will be made by considering their best interests in all foreign policy sectors as well as, for instance, in trade, environmental, agricultural and forestry, social, immigration and information society policies.

The Government approved a new neighbouring area cooperation strategy on 22 April 2004. The goal of neighbouring area cooperation is to enhance regional stability and to support balanced economic and social development in neighbouring areas. The primary target of neighbouring area cooperation is the Northwestern Federal District of Russia, particularly the Republic of Karelia, Leningrad Region, Murmansk Region and St. Petersburg. Neighbouring area cooperation is implemented especially in the following fields: the environment; agriculture and forestry; social welfare and health care; the juridical system; transport and communications; energy; nuclear safety; education; and civil society. The sum of EU 24.2 million is proposed for neighbouring area cooperation. This is EUR 0.7 million more than in the budget framework, which is exceeded because of Finland’s joining the G8 Global Partnership Initiative.

Finland’s foreign and security policy will be developed in accordance with the security and defence policy report to be submitted to the Finnish Parliament in autumn 2004. The appropriations proposed for maintaining Finland’s peacekeeping forces and for civilians’ participation in crisis management are in line with the budget framework. These appropriations include an untargeted sum of EUR 16.3 million for potential new projects, or for additional expenditure or continuation of ongoing projects. Appropriations for peacekeeping forces have been dimensioned in accordance with the strength of peacekeeping forces and the requirements of the tasks involved. An estimate of about 1,000 soldiers will participate in peacekeeping missions. EUR 74.5 million is proposed for membership fees; this is EUR 5.8 million more than in the budget framework, which is exceeded because of Finland’s increased payment share for UN peacekeeping forces.

Further information:

Deputy Director General for Finance Pekka Mattila, tel. 160 55850
Development cooperation: Sinikka Antila, Head of Unit, tel. 160 56283
Neighbouring area cooperation: Chief Administrator Sari Kantola, tel. 160 55610

























The draft budget of the Ministry for Foreign Affairs for 2005, in Finnish (html)

The draft budget of the Ministry for Foreign Affairs for 2005, in Finnish (pdf, 421kt)