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Showing posts with label shipbuilding. Show all posts
Showing posts with label shipbuilding. Show all posts

2 February 2025

Finland and the USA: Strong Allies with Shared Interests or a Trade Dispute?

Finland has always had excellent relations with the USA. As a sign of this, President Alexander Stubb has refrained from criticizing Donald Trump’s administration and has instead sought to understand its actions—even to the extent that some have speculated he is overly deferential to it.

There is, of course, an excellent explanation for Stubb’s and Finland’s approach: as a neighbor of Russia—and following the era of Finlandization, when the country had to be cautious in its dealings with the Soviet Union—Finland is now heavily dependent on NATO and, consequently, the USA to guarantee its military security. Nevertheless, Finland will remain a state governed by the rule of law, firmly committed to defending the inviolability of national borders against all major powers. This applies to Denmark as well.

In this context, it is extremely unfortunate that President Trump is threatening the EU—and, by extension, Finland—with trade tariffs that would hinder transatlantic commerce. Such measures would be particularly harmful to open economies like Finland’s, whose prosperity relies heavily on foreign trade. It would not be beneficial for the United States either, as it could negatively impact the very positive attitude that Finns generally have toward Americans.

It remains to be seen whether Trump and his administration understand this and seek to balance trade between the USA and the EU through other means. Moreover, in the end, high US tariffs would be paid by ordinary American voters, which is unlikely to increase Trump’s popularity in his own country.

After all, there are plenty of people in the US who struggle to cover their daily expenses. And they certainly did not vote for Trump so that he would plunge their personal finances into even greater hardship.

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Finally, I would like to share a message with my American readers from my country’s Minister for Foreign Trade, Wille Rydman (Finns Party). At the end of last week, he made the following remarks:

"The United States has been focused on utilizing Alaska’s mineral resources. Here, Finland’s world-class geological expertise can offer significant contributions. The U.S. plans for Alaska have also emphasized the development of basic infrastructure, particularly in telecommunications, an area where Finland has strong capabilities."

"The U.S. has also prioritized improving its situational awareness in the Arctic. There is room for development in sensor technology, measurement and monitoring systems, and the utilization of space technology. Finland has expertise in all these fields."

"We are working to open markets through ICE Pact cooperation, which could allow Finnish shipyards to contribute their capacity to icebreaker construction. North America faces a shortage of shipbuilding capacity, making this a fantastic opportunity for our shipyards... We have the knowledge and capability to build the best icebreakers quickly and at a competitive price. Finnish maritime industry companies have supplied icebreaking technology for the most powerful polar icebreakers, Baltic Sea escort icebreakers, as well as smaller river and port icebreakers. Our expertise is extensive, and the industry operates on a global scale."

I sincerely hope that these considerations reach President Trump’s administration and encourage it to foster cooperation between Finland and the EU—natural allies of the United States—rather than risk a trade war that would harm all parties involved.

27 August 2024

Will Orpo's Government Restore Finland to Sustainable Economic Growth?

The previous government of Finland – led by the exceptionally beautiful Prime Minister Sanna Marin (SDP) – was unable to manage Finland's public finances. This became particularly evident after the COVID pandemic was over, and the public sector should have been adjusted to match the available funds.

However, this was not done, and during Marin's government, Finland's public debt rose from 69% of GDP in 2019 to nearly 76%. At the same time, automatic expenditures were built into the state budget – the largest being a new level of administration with elected representatives for wellbeing services – which also forced the new government, led by the uncharismatic Petteri Orpo (NCP), to live on borrowed money.

The current strict Minister of Finance, Riikka Purra (Finns Party), recently commented on the situation. According to her, "The tax-funded bubble is even worse than I thought before taking on these tasks. I often wonder in my office, where protests, shouting, and threats occur under my window, whether the taxpayer really has to pay for all of this. Sometimes for legitimate reasons, and sometimes just because some acquired benefit has to be given up again."

She also criticized the attitude of the left-green opposition, stating that "Instead of constructing even a slightly coherent alternative to the government's economic and fiscal policy, the opposition strikes, hits, and shoots in all directions with every possible means."

Despite everything, Purra still believes that Finland's economy will turn for the better. This, of course, requires bringing public spending under control, as well as the success of Finnish businesses – from small bars to heavy industry – in domestic and international competition.

There have already been a few positive signals in this regard. One example is the order received by a Finnish shipbuilder for a massive Caribbean cruise ship, and another is the better-than-expected success of pharmaceutical company Orion’s new innovation on the market. The forest industry, which is particularly important for the entire economy, is also expected to improve its results within this year.

However, the most important task remains bringing public spending under control. This requires significant changes, especially in healthcare, where the new administrative structure has turned out to be even more expensive than anticipated, and the costly salary agreement implemented during the previous government doesn’t help matters.

It remains to be seen whether Orpo's government will succeed in returning Finland to a path of economic growth, one that hasn’t been seen since before 2009, but is optimistically reflected in the linked graph. 

And in any case, the recovery of the Finnish economy would be welcomed in order to attract highly skilled labor from abroad. Or as Purra stated: "When it comes to real foreign top experts, they will come along with private sector-led economic growth. This creates high value-added jobs that foreigners will also want to pursue."

Previous thoughts on the same topic:
Balancing the Books
The Finnish Minister of Foreign Affairs apologized to the Turkish Minister of Foreign Affairs for the words of the woman who criticized the man who exposed his penis
Finnish horror gallery and reality