Kenny to discuss EU finances on Finnish visit

Taoiseach Enda Kenny visits Finland today where he is meeting with President Sauli Niinisto for discussions focused on external relations.

He is to meet prime minister Jyrki Katainen for a discussion on the outstanding ambitions of Ireland's European presidency and a look ahead to the June European Council.

Later, the Taoiseach will address the 4th Annual Economic Ideas Forum, which will also be addressed by Greek prime minister Antonis Samaras and European Commissioner Olli Rehn.

Finland's renowned strict adherence to fiscal discipline is likely to be to the fore when Mr Kenny meets Mr Katainen in Helsinki. Ireland's bid to get debt relief on the State's investment in AIB and Bank of Ireland is reaching a critical stage, with discussions focusing on whether the euro zone's European Stability Mechanism fund can be used to "retroactively" directly recapitalise banks.

Finland opposes the move, and along with Germany and the Netherlands issued a joint statement last September outlining its opposition to the use of the ESM fund for legacy assets.

But while the Taoiseach's meeting with Mr Katainen offers a key bilateral opportunity at a sensitive political moment, Ireland could also benefit from examining Finland's economic and social model. Finland and Ireland have many similarities.

Finland, with a population of about 5 million, is one of the euro zone's smallest countries, situated at the periphery of Europe. Like Ireland, it has emerged from a complex colonial past.

But there are differences. Finland has embraced a progressive economic model that has blended the typically Nordic inclination for a strong welfare state with a healthy openness to the private sector.

As Ireland’s disproportionate dependence on foreign multinationals comes into the spotlight, the importance of cultivating an indigenous, sustainable private sector based on innovation and education has never seemed so clear.