Last updated in October 2009
Political relations
Historical, cultural and economic ties have existed between Germany and Finland since the Hanseatic era and the Reformation. Finland belonged to the Kingdom of Sweden until 1809 and then to Russia as an autonomous Grand Principality. In 1917, the German Reich was instrumental in Finland’s breaking away from Russia and its subsequent gaining of independence.
After the Second World War, the traditionally good economic and cultural relations between Finland and Germany were soon restored. Diplomatic relations between Finland and the two German states were not, however, resumed until the latter joined the United Nations on 7 January 1973.
Finland attaches great importance to Finnish-German relations, a fact that is also reflected in the numerous consultations on the political, economic and cultural fronts. Personal contacts are good at all political levels. In June 2008, the Finnish Foreign Minister Alexander Stubb paid a formal first visit to Berlin. Federal Foreign Minister Frank-Walter Steinmeier was in Helsinki on 4 December 2008 to attend the OSCE Ministerial Council Meeting. On 9 May 2006, Prime Minister Matti Vanhanen met with Federal Chancellor Merkel in Berlin during preparations for the Finnish and German EU Presidencies, which followed in immediate succession in 2006/2007. The Federal Chancellor paid a return visit to Helsinki on 19 December 2006 to attend the ceremony at which Finland handed over the baton of the EU Presidency to Germany. High points of diplomatic exchange were the state visit to Finland by President Rau from 10 to 12 September 2001 and the state visit to Germany by President Halonen from 2 to 5 May 2007.
There are good contacts between the parliaments of the two countries at both central and federal state level. The German-Nordic Parliamentary Friendship Group in the German parliament has maintained ties over many years with the Finnish-German Group of Parliamentarians in the Finnish assembly. In July 2009, the Speaker of the Finnish Parliament, Sauli Niinistö, paid a visit to the German Bundestag at the invitation of Bundestag President Norbert Lammert.
Economic relations
In terms of both imports and exports, Germany was Finland’s most important trading partner until 2007. In 2008, Russia relegated Germany to second place in trade as a whole. Finland’s trade with Russia was worth a total of EUR 17.7 billion, while its trade with Germany amounted to EUR 15.25 billion. Finnish statistics for 2008 put Finnish imports from Germany at EUR 8.7 billion and Finnish exports to Germany at EUR 6.5 billion, resulting in a German surplus of EUR 2.15 billion. Eighty-five per cent of imports reach Finland by sea, the German seaports of Hamburg, Rostock and Lübeck playing a key role.
Germany is a major destination for Finnish investments. Since 1985, Finnish companies have invested more than EUR 10 billion in Germany. Up to the end of 2008, direct investments by German companies in Finland amounted to EUR 2.5 billion. Some 450 Finnish firms have made investments in Germany, mainly already well-established companies in the paper industry (including Stora Enso with Sachsenpapier in Eilenburg and UPM-Kymmene Oyj's acquisition of Haindl-Papier in Augsburg). The activities of German companies in Finland have increased during the past years: Valmet Automotive builds a large part of the Boxster and Cayman models for Porsche in Uusikaupunki on Finland’s west coast. In recent years, an increasing number of German retail chains (Lidl, Bauhaus) have been operating successfully in Finland. The discount retailer Lidl now has more than 110 branches in Finland, and with its cheap range of goods it has helped to bring down foods prices in Finland as a whole. In 2007, the German home improvement chain Baumarkt opened its fourth branch in Finland.
To complement the two existing nuclear power stations in Olkiluoto and Loviisa (each with two blocks), the Franco-German joint venture AREVA NP (34 per cent Siemens) is currently constructing Finland’s fifth nuclear power plant in Olkiluoto, which will have a capacity of 1600 MW. The plant’s foundation-stone was laid in September 2005. The French partner is providing the nuclear technology, while Siemens is responsible for the turbine technology. It is a third-generation nuclear reactor, a so-called European Pressurized Water Reactor (EPR). The construction costs amount to approximately EUR 3 billion, 75 per cent of which were financed through loans. The project is the largest single investment ever made in Finland.
A German-Finnish Chamber of Commerce has existed since 1978. Meetings of the German-Finnish Intergovernmental Committee on EU and Economic Affairs have been held annually since 1960.
Cultural relations
Although German ceded its status as leading foreign language to English around 1960, the influence of the centuries-old traditions of Finnish-German relations still makes itself felt in academic life, culture and jurisprudence.
The promotion of German teaching at Finnish schools is actively supported by the central Finnish school authorities. Another priority concern of German cultural policy in Finland is promoting Germany as a place to study in close cooperation with German universities. With tight budgets at schools, universities, museums and cultural centres, Finland is grateful for the assistance provided by the German Academic Exchange Service (DAAD), the Educational Exchange Service (PAD), the Alexander von Humboldt Foundation and other cultural organizations.
In spite of considerable budget cutbacks, the Helsinki-based Goethe Institute in Finland makes a significant contribution to lively cultural exchange. Other major pillars of cultural relations are the German School and the German Library in Helsinki, both of which celebrated their 125th anniversary in 2006, the German Lutheran community in Finland (which celebrated its 150th anniversary in 2008), the three DAAD academic teachers and the German departments at Finnish universities.
There is a tightly-knit network of cultural exchange in the private sector as well. In addition to numerous visits and personal contacts between artists, scientists and scholars from the two countries, a wide range of cultural activities are organized by the more than 30 Finnish-German cultural associations in Finland as well as by some 80 local chapters of the German-Finnish Society – the third-largest bilateral society of its kind in Germany – and the Berlin-based Finnish Institute in Germany. Activities are also carried out under some 80 town and municipality twinning arrangements, including exchanges for secondary school students and young people. Germany remains a popular place to study for Finnish students.
