perustamiskokouksessa 20.6.2007                                                                                                                   

Geir H. Haarde

Ladies and Gentlemen, I am honoured to be present at the establisment of the Finnish-Icelandic Chamber of Commerce and would like to congratulate the first Board of the Chamber on its election. The equal number of male and female members of the Board and the good balance between representatives of  both established and emerging companies in the Finnish market shows that the Chamber has a 21st Century perspective.

A new and independent platform of this nature is of great importance for further strengthening Finnish-Icelandic business relations.  It will also serve as a vital source of information about our economies, business environment and new opportunities. Competitive and high-tech Finland is an ideal country for the operation of Icelandic companies. Both nations are likeminded and results oriented.

Icelandic companies have in the past few years been expanding their activities abroad, principally in Northern Europe, but also in Eastern Europe, North America and in Asia. This new expansion has clearly been noted here in Finland.  Apart from the traditional fisheries sector, these successful companies are engaged in various fields, such as banking and financial services, software, biotechnology, aviation and tourism, prosthetics and generic pharmaceuticals, as well as retail merchandising. Considering the almost total absence of Icelandic companies from the Finnish market a few years ago, it is remarkable to hear that four Icelandic banks and financial institutions are now operating here in Finland.  

But Icelanders are also investing at home, not least in the harnessing of Iceland´s vast energy resources, both hydropower and geothermal power. At the same time, international companies are showing increasing interest in utilising Iceland´s secure, clean and renewable energy at competitive prices. A new high-tech aluminium smelter was, for example, recently inaugurated in eastern Iceland.

Several factors have contributed to the economic development which has given Icelandic companies the opportunity to develop and expand, not least the policies pursued by the Government of Iceland in recent years. In the past sixteen years we have liberalised, deregulated and privatised, with the aim of improving the economic environment and encouraging entrepeneurship. Tax-cuts have been an important element, for example, the corporate tax was reduced from 50 percent in 1990 to 18 percent in 2002. This has attracted foreign investors, encouraged local investment and discouraged Icelandic companies from moving abroad, and most interestingly, increased government revenues from this particular source of revenue. Simultaneously, government debt has been radically reduced.  

Following parliamentary elections, a new coalition government took office less than a month ago and it will continue this policy of liberal but responsible economic policy.  

Other important factors which have contributed to Iceland´s advance are the EEA agreement in, which provides access to the EU´s Single Market and Iceland´s strong and fully funded pension system, which have provided much needed capital for investments abroad. The flexibility of the Icelandic economy, especially of the labour market and the benefits of international education, which so many young Icelanders have enjoyed over the years, have also made an impact.    

This rapid increase in activities of Icelandic companies abroad and the sharp increase in Icelandic foreign direct investment has caught the attention of the international financial community and the media in the recipient countries. Accordingly, we have seen a substantial interest in Iceland and the activities of Icelandic companies in Finland by the Finnish media. This means that the new Finnish-Icelandic Chamber of Commerce can play an important role in providing accurate information about the economic environment in Iceland.

I look forward to following the future activities of the Finnish-Icelandic Chamber of Commerce, albeit from a distance, and wish it every success in its important task.