Alexander Stubb: I’m fan of Estonia

Photo: Tairo Lutter

In Tallinn yesterday, fresh Finnish Prime Minister said his government does apply measures to boost the economy, but growth is still for enterprises and entrepreneurs to create.

In spring, Finland’s finance ministry predicted 2014 GDP growth to be 0.5 percent, European Commission offer 0.2 percent. How will your government get Finland to grow?

Firstly, over these past years the economic forecasts have been overly optimistic, regrettably. So if we make 0.5 percent, that’ll be good news.

Secondly: no need to create the illusion that growth is created by the state or the Finnish government. This is the job of Finnish enterprises and entrepreneurs. All we do is create the framework for growth. Within the framework, there are several elements: first the structural package, structural changes – with the latter, by the way, among other things, comes the administrative reform and social and health care services reform, which has now been jolted into gear.

Also, we will stick to what has been agreed that, starting 2018, we will be able to cut the debt and of course – by help of legal space, we will support activities of enterprises. As an example of that, we’ll be cutting corporate income tax from 26 percent to 20 percent.

At the Finnish national Coalition Party’s congress in Lahti, you said: «We have lost a lot jobs. Due to the aging population, at the current tempo, public sector income is not sufficient to cover costs.» Is it really that serious?

Sure it is. If, this year, Finland assumes €7bn extra in debt, we have the so-called structural problem and we need to deal with this. During this government, we have already applied over €7bn worth of adjustment measures and, if needed, we need to continue these in the long perspective.

But, at the moment, I do not think that tax rises or cuts would be the right path to take. Therefore, at the governmental talks, we agreed upon a mini-stimulus package, which will hopefully retain our AAA rating and, as supported by a stable and predictable economic policy, will make our economy grow again. 

The previous government of Jyrki Katainen decided to cut child benefits. Up to now, in Finland, it was €104 for fist child – by how much is it reduced and how has that been received?

We were forced to cut, wall to wall, at all places – including families with children. Child benefits were cut by €8 a month. Now, we are trying to ease tax burden for families with children for about €70m so the overall impact of the measures for families with children would be balancing.

The original decision came in March, and the €70m decision is from these recent mini governmental talks.

Your cabinet is one of economic discipline?

Not so black and white, perhaps. With the new government, we tried to have a package with three goals: firstly, to remain true to the former framework decision; secondly, to cut debt; and, thirdly, the employment and growth measures. I hope it worked.

For instance, we are investing in large infrastructure projects, linking these to regional building plans – Helsinki’s new western metro line; the water-drip shaped short distance train line in heart of Helsinki, or the Tampere trams project.  

The cities undertake to develop construction projects as linked to these. This is a quick-impact stimulus plan – we make our plans for a longer time, but the work starts immediately.

About these mini governmental talks ... I read in Helsingin Sanomat that, at these, the soc dems won out and you gave in. That true?

I’m a team player. In my opinion, it is very important that the entire government would win, and then each may apply his own interpretation to that. Most important, that Finland wins out.

In Estonia, we were somewhat surprised at Finnish foreign minister Erkki Tuomioja’s remark in Kauppalehti. (Regarding stands of President of Estonia Toomas Hendrik Ilves towards Ukraine, the latter said that «Ilves’ world view has been shaped in Munich and the United States, while the others have lived and managed here.» – edit.) Did you touch upon that, when meeting Mr Ilves?

All talks that we have with President Ilves, Prime Minister Taavi Rõivas or foreign minister Urmas Paet are confidential and I would not herewith reveal the content thereof. 

I’m Estonia fan, a great friend of Estonia’s, and have always admired Mr Ilves whom I consider to be a world leading foreign and security policy expert. That both in practical policymaking and academically.

It may of course be said that Mr Ilves’ world view has been shaped in Munich and USA; but you have also lived in the US for quite a while.

Yes, surely my world view has been formed both in Finland, USA, France and also the UK – in all of these countries where I have lived and studied. An in Belgium, of course, as I have lived there for a decade.

In that sense we humans are a funny species, being captives to our experience and mostly also proud of these experiences – and that is good, actually.

As foreign minister, you had a duck painting by Kaj Stenvall on your office wall on the everyday life of global politics... carrying strong EU and NATO symbolism. Did you take it along or leave it there?

In my new office the genre of it doesn’t fit too well, so I took it home and I’m trying to get my wife’s permission as to where I may hang it. 

In your speech in Lahti, you said Finland needed better policy-making, that you desire politics more positive. What do you mean by that?

It means that, in my opinion, there’s too much reviling of people. Grown up people reviling other grown-ups. In my opinion, this is no way to do politics. I want to encourage people to make good choices, and to speak well of other people, even if they are in other parties. 

Many parties and politicians have good ideas. Decisions are born together, not by opposing each other.

Will the liquefied gas (LNG) terminal be built in Finland or Estonia?

I’d say: hopefully liquefied gas will, as soon as possible, be moving back and forth via Balticconnector pipes, between Finland and Estonia.