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separate armistice agreement with the soviet union on 19 september 1944 and was the only bordering country of ussr in europe alongside norway which gained a border with the soviet union only after the war that kept its independence after the war during and in between the wars approximately 80 000 finnish war children were evacuated abroad 5 went to norway 10 to denmark and the rest to sweden most of the children were sent back by 1948 but 15 20 remained abroad identification document and tag of a finnish war child map of finnish areas ceded to the soviet union in 1944 after the continuation war the moscow armistice was signed between finland on one side and the soviet union and britain on the other side on 19 september 1944 ending the continuation war the armistice compelled finland to drive german troops from its territory leading to the lapland war 1944 1945 in 1947 finland reluctantly declined marshall aid in order to preserve good relations with the soviets ensuring finnish autonomy 93 nevertheless the united states shipped secret development aid and financial aid to the non communist sdp social democratic party 94 establishing trade with the western powers such as britain and the reparations to the soviet union caused finland to transform itself from a primarily agrarian economy to an industrialised one after the reparations had been paid off finland continued to trade with the soviet union in the framework of bilateral trade memorial of the mannerheim cross knights of parikkala finland finland s role in the second world war was unusual in several ways despite massive superiority in military strength the soviet union was unable to conquer finland when the former invaded in 1939 in late 1940 german finnish co operation began it took a form that was unique when compared to relations with the axis finland signed the anti comintern pact which made finland an ally with germany in the war against the soviet union but unlike all other axis states finland never signed the tripartite pact meaning that finland was not de jure an axis nation memorials edit winter war monument in suomussalmi kainuu finland although finland lost territory in both of its wars with the soviets the memory of these wars was sharply etched in the national consciousness finland celebrates these wars as a victory for the finnish national spirit which survived against long odds and allowed finland to maintain its independence many groups of finns are commemorated clarification needed today including not just fallen soldiers and veterans but also orphans evacuees from karelia the children who were evacuated to sweden women who worked during the war at home or in factories and the veterans of the women s defense unit lotta svärd some of these groups could not be properly commemorated until long after the war ended in order to preserve good relations with the soviet union however after a long political campaign backed by survivors of what finns call the partisan war the finnish parliament passed legislation establishing compensation for the war s victims 95 96 post ww2 and cold war edit neutrality in cold war edit the finno soviet treaty finland retained a democratic constitution and free economy during the cold war era treaties signed in 1947 and 1948 with the soviet union included obligations and restraints on finland as well as territorial concessions the paris peace treaty 1947 limited the size and the nature of finland s armed forces weapons were to be solely defensive a deepening of postwar tensions led a year later to the treaty of friendship cooperation and mutual assistance 1948 with the soviet union the latter in particular was the foundation of finno soviet relations in the postwar era under the terms of the treaty finland was bound to confer with the soviets and perhaps to accept their aid if an attack from germany or countries allied with germany seemed likely the treaty prescribed consultations between the two countries but it had no mechanism for automatic soviet intervention in a time of crisis 61 both treaties have been abrogated by finland since the 1991 dissolution of the soviet union while leaving the borders untouched even though being a neighbor to the soviet union sometimes resulted in overcautious concern in foreign policy finlandization finland developed closer co operation with the other nordic countries and declared itself neutral in superpower politics the finnish post war president juho kusti paasikivi a leading conservative politician saw that an essential element of finnish foreign policy must be a credible guarantee to the soviet union that it need not fear attack from or through finnish territory because a policy of neutrality was a political component of this guarantee finland would ally itself with no one another aspect of the guarantee was that finnish defenses had to be sufficiently strong to defend the nation s territory this policy remained the core of finland s foreign relations for the rest of the cold war era 61 in 1952 finland and the countries of the nordic council entered into a passport union allowing their citizens to cross borders without passports and soon also to apply for jobs and claim social security benefits in the other countries many from finland used this opportunity to secure better paying jobs in sweden in the 1950s and 1960s dominating sweden s first wave of post war labour immigrants although finnish wages and standard of living could not compete with wealthy sweden until the 1970s the finnish economy rose remarkably from the ashes of world war ii resulting in the buildup of another nordic style welfare state helsinki accords treaty despite the passport union with sweden norway denmark and iceland finland could not join the nordic council until 1955 because of soviet fears that finland might become too close to the west at that time the soviet union saw the nordic council as part of nato of which denmark norway and iceland were members that same year finland joined the united nations though it had already been associated with a number of un specialized organisations 97 the first finnish ambassador to the un was g a gripenberg 1956 1959 followed by ralph enckell 1959 1965 max jakobson 1965 1972 aarno karhilo 1972 1977 ilkka pastinen 1977 1983 keijo korhonen 1983 1988 klaus törnudd 1988 1991 wilhelm breitenstein 1991 1998 and marjatta rasi 1998 2005 in 1972 max jakobson was a candidate for secretary general of the un in another remarkable event of 1955 the soviet union decided to return the porkkala peninsula to finland which had been rented to the soviet union in 1948 for 50 years as a military base a situation which somewhat endangered finnish sovereignty and neutrality signing the helsinki accords are the west german chancellor helmut schmidt east germany s leader erich honecker us president gerald ford and the austrian chancellor bruno kreisky officially claiming to be neutral finland lay in the grey zone between the western countries and the soviet union and it also developed into one of the centres of the east west espionage in which both the kgb and the cia played their parts 98 99 100 101 102 the 1949 established finnish security intelligence service supo suojelupoliisi an operational security authority and a police unit under the interior ministry whose core areas of activity are counter intelligence counter terrorism and national security 103 also participated in this activity in some places 104 105 the finno soviet treaty of 1948 finno soviet pact of friendship cooperation and mutual assistance gave the soviet union some leverage in finnish domestic politics however finland maintained capitalism unlike most other countries bordering the soviet union property rights were strong while nationalization committees were set up in france and uk finland avoided nationalizations after failed experiments with protectionism in the 1950s finland eased restrictions and committed to a series of international free trade agreements first an associate membership in the european free trade association in 1961 a full membership in 1986 and also an agreement with the european community in 1973 local education markets expanded and an increasing number of finns also went abroad to study in the united states or western europe bringing back advanced skills there was a quite common but pragmatic minded credit and investment cooperation by state and corporations though it was considered with suspicion support for capitalism was widespread 106 savings rate hovered among the world s highest at around 8 until the 1980s in the beginning of the 1970s finland s gdp per capita reached the level of japan and the uk finland s economic development shared many aspects with export led asian countries 106 building on its status as western democratic country with friendly ties with the soviet union finland pushed to reduce the political and military tensions of cold war since the 1960s finland urged the formation of a nordic nuclear weapons free zone fi nordic nwfz and in 1972 1973 was the host of the conference on security and cooperation in europe csce which culminated in the signing of the helsinki accords in 1975 and lead to the creation of the osce 61 society and the welfare state edit president urho kekkonen s funeral procession in 1986 before 1940 finland was a poor rural nation of urban and rural workers and independent farmers there was a small middle class employed chiefly as civil servants and in small local businesses as late as 1950 half of the workers were in agriculture and only a third lived in urban towns 107 the new jobs in manufacturing services and trade quickly attracted people to the towns and cities the average number of births per woman declined from a baby boom peak of 3 5 in 1947 to 1 5 in 1973 107 when baby boomers entered the workforce the economy did not generate jobs fast enough and hundreds of thousands emigrated to the more industrialized sweden migration peaking in 1969 and 1970 today 4 7 percent of swedes speak finnish 107 by the 1990s farm laborers had nearly all moved on leaving owners of small farms on their own 108 by 2000 the social structure included a politically active working class a primarily clerical middle class and an upper bracket consisting of managers entrepreneurs and professionals the social boundaries between these groups were not distinct causes of change included the growth of a mass culture international standards social mobility and acceptance of democracy and equality as typified by the welfare state 109 the generous system of welfare benefits emerged from a long process of debate negotiations and maneuvers between efficiency oriented modernizers on the one hand and social democrats and labor unions a compulsory system provides old age and disability insurance 110 the national government provides unemployment insurance maternity benefits family allowances and day care centers health insurance covers most of the cost of outpatient care the national health act of 1972 provided for the establishment of free health centers in every municipality 111 there were major cutbacks in the early 1990s but they were distributed to minimize the harm to the vast majority of voters 112 economy edit the post war period was a time of rapid economic growth and increasing social and political stability for finland the five decades after the second world war saw finland turn from a war ravaged agrarian society into one of the most technologically advanced countries in the world with a sophisticated market economy and high standard of living the increased standard of living in the post war period was reflected in the possession by households of a variety of consumer goods in 1977 for example 63 9 of households had a car 68 a washing machine 78 a vacuum cleaner 49 a food mixer 95 a television 52 a cassette recorder 65 a still camera and 93 a transistor radio while in 1976 21 of households had a radio recorder 55 a tape recorder and 44 a record player 113 in 1991 finland fell into a depression caused by a combination of economic overheating fixed currency depressed western soviet and local markets stock market and housing prices declined by 50 114 the growth in the 1980s was based on debt and defaults started rolling in gdp declined by 15 and unemployment increased from a virtual full employment to one fifth of the workforce the crisis was amplified by trade unions initial opposition to any reforms 115 politicians struggled to cut spending and the public debt doubled to around 60 of gdp 114 some 7 8 of gdp was needed to bail out failing banks and force banking sector consolidation 116 after devaluations the depression bottomed out in 1993 post cold war history edit the gdp growth rate has since been one of the highest of oecd countries and finland has topped many indicators of national performance citation needed until 1991 president mauno koivisto and two of the three major parties center party and the social democrats opposed the idea of european union membership and preferred entering into the european economic area treaty 117 however after sweden had submitted its membership application in 1991 and the soviet union was dissolved at the end of the year finland submitted its own application to the eu in march 1992 the accession process was marked by heavy public debate where the differences of opinion did not follow party lines citation needed officially all three major parties were supporting the union membership but members of all parties participated in the campaign against the membership citation needed before the parliamentary decision to join the eu a consultative referendum was held on 16 april 1994 in which 56 9 of the votes were in favour of joining the process of accession was completed on 1 january 1995 when finland joined the european union along with austria and sweden leading finland into the eu is held as the main achievement of the centrist conservative government of esko aho then in power in the economic policy the eu membership brought with it many large changes while politicians were previously involved in setting interest rates the bank of finland was given an inflation targeting mandate until finland joined the eurozone 114 during prime minister paavo lipponen s two successive governments 1995 2003 several large state companies were privatized fully or partially 118 matti vanhanen s two cabinets followed suit until autumn 2008 when the state became a major shareholder in the finnish telecom company elisa with the intention to secure the finnish ownership of a strategically important industry in 2000 finland s first female president tarja halonen took office 119 the former president of finland martti ahtisaari received the nobel peace prize in 2008 120 president halonen was succeeded by president sauli niinistö holding office since 2012 until 2024 121 in addition to fast integration with the european union safety against russian leverage has been increased by bu...