H.E. Pertti Ikonen, Ambassador of Finland to Serbia
Republic of Finland
The Republic of Finland is a Nordic country in the north of Europe, which borders Sweden to the west, Norway to the north, Russia to the east, and Estonia across the sea to the south. The country’s population is about 5.5 million, mostly inhabiting the southern part of the country. Finland is the eighth largest country in Europe, but also the most sparsely populated country in the European Union. The capital city of this parliamentary republic is Helsinki, which has over a million inhabitants. Finland joined the United Nations in 1955, when it established an official policy of neutrality. It has been a member of the European Union since 1995. Finns belong to Finno-Ugric peoples, and they speak the Finnish language. Besides Finnish, Swedish is also an official language. What is interesting about Finland is that it is the only country in the world which broadcasts news programs in Latin.

We were much honored to talk to His Excellency Mr. Pertti Ikonen, Ambassador of Finland to Serbia.
1.Your Excellency, how do you feel about being in Belgrade? Can you tell us your impressions of Serbia?
Serbia is a great country in many ways. It lies centrally in the middle of the Balkans, and possesses a rich history and culture. I feel privileged to serve my country in Belgrade.
2.How long have you held the position of ambassador in Serbia, and what has been the course of your career in diplomacy before you came to Serbia?
I have been exactly 10 months in Belgrade. Before coming here, I was in charge of Finland's Action Plan for Aid for Trade and Information Society related activities. Before that, I worked as a Minister Counsellor at the Finnish Embassy in Denmark. Before leaving for Copenhagen, I was the Director of the Non-Governmental Organizations Division at the Ministry for Foreign Affairs.
3. What is the current diplomatic and economic cooperation of our countries like, what was it like in the past, and what should be changed in Serbia in order to improve that cooperation?
In general, the relations between Finland and Serbia are very good. At the political level, we have regular high level visits, and contact between our administrations and institutions are increasing.
The economic relations between our countries are still at a low level, but fortunately a positive trend is visible. During the past few years, several new Finnish companies have entered the Serbian market either as investors, or technology or service providers. There is also a positive trend among Finnish companies expressing interest in entering the Serbian market.One of the main reasons why this interest is rapidly increasing, is the growing confidence in the stability of the Serbian market, and the potential growth that Serbia has because of the ongoing reforms and the EU integration process.
I would very much like to emphasize the importance of small and medium sized companies in Serbia and Finland in finding partners and a starting trade cooperation. Investors often first trade with a country before an investment decision is made. When we manage to activate contacts between companies, both imports and exports increase.
4. Your Excellency, last year your country, along with Austria and Sweden, celebrated 20 years from the time of entering the EU, and since you were a part of the negotiating team when Finland joined the EU 20 years ago, can you tell us about the course of those negotiations, what were the problems you encountered, was there any opposition, and what were the compromises you had to make as a country?
The most difficult question for Finland was that of farming subsidies. We have a harsh climate and crops are smaller than in most other EU countries. The farmers were afraid that post membership, farming would no longer be profitable because national subsidies would not be allowed. As a result of the membership negotiations between Finland and the EU Commission, Finland was allowed to continue to give national subsidies to farmers after joining the EU.
In the consultative referendum in 1994, 56.9 percent of Finns voted in favor of membership, so a clear majority supported membership, but of course there were also opponents.
When joining any union or community, one can't have an attitude that one would only benefit and gain from the membership. The main thing is that one knows its priorities, pursues them strongly, constructively and pragmatically while at the same time gives support to issues that may not be so important or beneficial for oneself, but to others. That is the only way to get other's support when needed.
5. In your opinion, at this moment, 20 years after joining the EU, what are the positive and negative sides of EU membership? Did EU membership fulfill the expectations of your citizens? And what are the areas where possibilities for improvement and change for the better still exist?
According to recent polls, the majority of Finns still support EU membership. I would highlight three things that the EU has brought us: 1) peace and stability. We live in stable society which is essential for economic growth and the wellbeing of citizens; 2) growth and development. When Finland applied for EU membership in 1992, we were suffering from a huge depression and two decades later we are ranked as the most competitive country in the world. Our companies are known worldwide to be producers of high quality products and services; 3) Freedom and opportunities. Freedom of movement, goods and capital are in the core of the EU. We can travel, live, work and study freely in any EU member state. It's a huge opportunity for citizens.
The greatest changes that EU membership has brought to Finland have been structural changes in agriculture, and changing the work environment, meaning that in the private sector, competition is stronger than before and that working life can be very unstable. EU membership has made business life more international, but at the same time it has made it more unstable. Then again, one can argue that globalization would have brought challenges to the private sector in any case, and by surviving the competition in the EU, our companies have made it to the global markets where the competition is even tougher.
The EU is a huge opportunity for small countries like Finland, because size doesn't define the level of influence in the EU's decision making process. For Finland, EU membership has made it possible to have a stronger influence on European issues, and as a member of the EU, we also have a greater influence, globally. The EU is the most powerful tool to control globalization.
When I think of Finland 21 years ago, I can see how the whole society has changed, become more developed, more international, more open and more aware of what is going on outside Finnish borders. I'm particularly happy to see young people who speak languages, have opportunities to travel and study abroad, and get to know new people and cultures.
6. At this moment Serbia is a candidate country, and negotiations began in January, 2014.In your opinion, how far along is Serbia on the path to the EU, and what will be crucial in order for Serbia to become a member state?
I don't think it's useful, or even possible, to measure how far someone is in negotiations. Every country has its own path, and takes the time it needs. In my opinion, the more ready a country is to join, the stronger member state it will be, which is of benefit to both, the country itself, and the EU. In general, the negotiation process is a huge effort for any country, and we must not forget that, for example when Finland joined the EU 21 years ago, there was much less EU legislation and regulations than today, so today negotiations are very different from 20 years ago.
It is crucial for any negotiating country to be persistent and patient, and use the best experts it has to fulfill the membership criteria. Yet I would say that Serbia is reforming, primarily for itself and for its citizens, and not for anybody else, which I think is very well understood in Serbia.
7. How do you see Serbia’s EU integrations in the future, and do you think that upon joining the EU, Serbia will become more appealing to investors, not just from Finland, but from other countries as well?
We already have seen that Finnish companies have become more interested in Serbia, after it began membership negotiations with the EU. Being a candidate country provides a positive signal to companies. Being an EU member state means that the same rules apply there, as in the companies' home country, which makes business activities easier.
I definitely see Serbia as an EU member state in the future. Serbia has madegreat progress during the last years to transform its society. Of course, there is still a lot of work to be done, and Serbia has to fulfill the criteria for the EU membership.
Finland is a strong supporter of Serbia's EU integration. We have had many Finnish experts, for example in the transport and education sectors, to assist Serbs in their EU integration, and we are ready to share our expertise, also in the future.
8. What is the nature of the foreign trade cooperation between our countries, and what are the industries with the most potential in Serbia? What does Serbia export to Finland, and what does it import from Finland?
According to Finnish Customs Statistics, trade between Finland andSerbia amounted to 43.2 million EUR in 2015. Out of that, exports from Finland amounted to 26.5 million EUR, which is a 24% decrease compared to 2014. Imports to Finland amounted to 16.7 million EUR, which is 23% increase compared to 2014.
The main export commodities from Finland are paper and related products, electrical machinery and parts, iron and steel, office and other machines, plastics in primary forms, industrial machinery and different instruments. The main import commodities to Finland are electrical machinery and parts, footwear, paper products, food stuffs for animals, vegetables and fruits, plastics in non-primary forms, rubber products and articles of apparel and clothing accessories.
The Finnish paper industry has a strong impact on the Serbian market as products from this industry amount to 18.3% of overall exports from Finland to Serbia. Electrical machinery and parts follow with 16%. Serbian products from electrical machinery, footwear and the paper industry are equally important, looking at Finnish imports. These three industries amount to 45.3% of the overall Finnish imports from Serbia.
Industries with the most potential in Serbia are automotive, textile, metal and food processing sectors. Other sectors, such as energy and environment, are very interesting for Finnish companies looking at opportunities in the Serbian market.
9. When it comes to investments, how do investors from Finland regard the Serbian market? What are the most influential companies that have made investments here?
The first Finnish investment in Serbia was made by Tikkurila, the paints and coatings manufacturer that took over the local company, Zorka Colors. Not long after Tikkurila, other Finnish investments followed. Aside from the already mentioned Tikkurila, I would mention Nokia Networks, Lindstrom, Kone and the PKC Group, among well-known and globally recognized Finnish companies operating in Serbia. There are numerous opportunities for Finnish companies and the interest of Finnish companies in the Serbian market is growing of late. Thus, I am convinced that there will be more of them coming to Serbia in the future. However, I would not only emphasize investments, but also very important business cooperation, exchange of know-how and experiences. The EU integration process is helping Serbia to become more attractive, not just to the Finnish, but to all other companies looking at a stable market and a stable business environment. The Embassy of Finland supports Serbia`s integration into the EU, and further improvements in the rule of law and other relevant aspects, important for the overall business climate in Serbia.
10. The Finnish company, PKC Group, has been operating in Serbia since last year, and there is a production plant located in Smederevo. How many employees are there at the moment and what are the plans regarding opening new workplaces?
The PKC Group is the largest Finnish company operating in Serbia, according to the number of employees. At the moment, there are about 1,500 employees in their factory in Smederevo. I cannot talk about PKC Group plans on opening new workplaces or not, as it is exclusively each company's decision. However, I can say that they are satisfied with regard to how their operation in Serbia is functioning, especially when looking at the quality and productivity of their employees. It is important to mention that the PKC Group exports 100% of its production from the factory in Smederevo, and as such, it is a highly appreciated investment from the Government of Serbia's point of view.
11. Can you tell us about the relationship between Serbia and Finland, in the fields of science, culture, and education?
Regarding culture, we have a very active relationship. Every year, we have several Finnish artists and writers visiting Serbia. Every two years, we have a Finnish movie week in Belgrade, and Finnish films can be seen in many major film festivals in Serbia. There is some student exchange between Serbian and Finnish universities, and there are several Serbian degree students at Finnish universities. Every now and then, our Embassy receives groups of Finnish students who are on a study tour in Serbia. I think it is an excellent way for students to get introduced to the country.
12. How would you present your country as a tourist attraction? What aspects and landmarks would you highlight?
Finland has fabulous and unique nature. Lakes and forests cover the greater part of the country. We have four very different seasons, ranging from the midnight sun in the summer, to dark and cold winter days. I would highlight our archipelago and Lapland, which offer tourists a unique experience of almost untouched nature, peace and quiet and clean air.
In the summer, one can hike in one of our 39 national parks, and in the winter, ski on the frozen sea, or lakes. Finland has so many faces with different seasons that one should visit the country more than once. And when in Finland, a sauna is a must. Sauna culture is such an integral part of Finnish life, that one should not visit Finland without experiencing it.
13. What are the things you particularly like, or don’t like, in Serbia? And, do you plan to continue living here, after your term ends?
I have lived, beside my home country in Sweden, Denmark, Estonia and Venezuela. I spent my childhood in summer camps in England, and the United States. My background has taught me to like everything. What I especially like in Serbia is the "carpe diem" attitude of the Serbs. People enjoy their lives, here and now.
After my term ends, I will probably continue in the Finnish diplomatic service for some time. Finally, I will return to my home in Espoo, that is the greenest town in Europe. In Espoo, my house and sauna are located by a beautiful, unpolluted lake.
14. How do you spend your free time, and what has been your favorite memory from Serbia, so far?
My free time is very limited, but I am a sports enthusiast. Winter sports are very important to me. Alpine skiing, Nordic skiing and ice hockey are the things I cannot live without. I play ice-hockey in the DN (Drvene Nogice) Belgrade team.
My favorite memory from Serbia so far, has been my trip to Stara Planina, where I had the opportunity to drive on snowy and curvy roads, and to ski with the members of the Mountain Rescue Team.