Urho Blom

Atte Harjanne

Jenni Pajunen

Eveliina Heinäluoma

Quick Key Points

  • On Sunday, June 13th, new city councils and boards will be elected in roughly 300 municipalities across Finland.
  • Power dynamics, politics, and decisions will change as a result of predicted election results.
  • When considering municipal elections in major cities, it’s not only the winners that are important.
  • Municipalities have a wide remit and are responsible for approximately two-thirds of all public services, the other third coming from the national government.
  • The challenges facing cities are in many ways related to the ability of organizations, and more particularly of companies, to provide viable and cost-efficient solutions in a changing business landscape.
  • Who can vote? Click here to read about eligibility to vote in Finland’s municipal elections.

We reached out to Urho Blom, Managing Director of Eurofacts, for his perspective on this year’s municipal elections in Finland. We gained additional insights from three candidates currently in the running.

What does Finland’s 2021 municipal election mean for the country?

On Sunday 13th June, new city councils and boards will be elected in roughly 300 municipalities across Finland. These municipal decision-makers are elected every four years in what is a genuine redistribution of political power at the local level.

In recent polls, the National Coalition Party (NCP), the Social Democrats, and the Finns Party have taken the lead. In the 2017 municipal elections, the NCP won. This time, however, it can already be estimated with reasonable certainty that the party with the most to gain in the forthcoming municipal elections is the Finns Party. Part of the reason this is noteworthy is that the June municipal elections are considered to set the tone for the next parliamentary elections, scheduled for the spring of 2023.

Among our country’s major cities, Helsinki is most in focus. The Greens and the NCP will clash over their influence of the capital, where the NCP has led for decades and has been the largest political group. One of the key issues in major cities will be the economy and how to best maneuver out of the pandemic. In many areas, populations are aging and service costs are rising, while the southern cities are reaping the benefits of domestic migration.

As Finland’s capital, Helsinki is also the nation’s economic engine. The Tampere region no longer considers its attractiveness in terms of competing with Turku – it’s Helsinki that Tampere competes with now.

When considering municipal elections in major cities, it’s not only the winners that are important. There are also those parties that find a way to agree upon an agenda and form a majority despite the absence of a “government” and an “opposition” in the Finnish political system.

Tip #1: Businesses should get to know actors from all political groups.

What is the role of municipalities?

In Finland, municipalities are rather independent and exercise strong influence over their own affairs. They have a wide remit and are responsible for approximately two-thirds of all public services (with the remainder the responsibility of the national government). Municipalities and associations of municipalities, as well as companies and communities controlled by them, employ around 450,000 people. This is not an insignificant number of voters for parties to compete for!

The fields of responsibilities of cities and municipalities are diverse. They provide basic services to citizens, such as social and health care, day care, secondary education, elderly care, education and training, income support, smart zoning, environmental upkeep, library and information services, civil and child protection, well-functioning road and rail infrastructure, maintenance, regional cooperation and business policy for companies. Water, waste and energy supplies have traditionally been municipalities’ in-house services, but now private companies have also come into play.

At the local level, decisions over issues are prepared rather transparently. This guarantees that local residents and companies have the opportunity to influence matters that affect them.

In Finland, the city of Helsinki is an economic giant. Helsinki’s operating expenses in its 2021 budget are forecast at approximately 5 billion euros, with projected total revenues of around 5.3 billion euros. Helsinki is not only a major employer, but also a major buyer of services. Thus, public procurement and tendering – as well as the opening up of purchase invoice data for cities and public entities – are issues that companies should consider.

Tip #2: Companies should analyze their operational landscape and their competition vis-à-vis public purchasing decisions.

Densely populated cities are under constant pressure from megatrends such as digitalization, climate change, urbanization and technological development. Where challenges are great, so are the commercial gains for solutions that succeed. One way to look at cities is through the lens of various B2B and B2C use cases, business models, and possibilities for scalability. What are the opportunities for positive development and growth?

Technology is developing at a rapid pace. Traditional work and the use of office spaces have changed. It is likely that you have been using Teams, Zooms, Google Meet and other similar platforms throughout the pandemic.

The challenges facing cities are in many ways related to the ability of organizations, and more particularly of companies, to provide viable and cost-efficient solutions in a changing business landscape. As a business leader, do you know the decision-making agenda of your company’s area of operation or city, as well the key items on that agenda? Are you familiar with the city’s procedures and decision-making processes? Do you know how political groups are planning to develop the city over the next four years? Have you invested in stakeholder relations, i.e. have you taken the time to get to know the right people?

Tip #3: Each major city has its own business communities and networks. If you want to be successful in the long run, it is important to do your homework despite the summer holidays ahead!

Why should I vote?

I hope you already see why there are plenty of reasons for a business executive to vote in Finland’s municipal elections. Whether you have lived in Finland for a long period of time, have come to do business for a few years, or plan to stay for good, my warm recommendation is that you vote.

Why?

Because as a citizen, resident or business executive, your vote and voice can make all the difference in how international, dynamic, diverse and inclusive we as a society and economy will become. By voting, you will also show your employees that you are involved in local affairs, and will have additional point to discuss with business partners and potential customers.

Urho Blom
CEO, Eurofacts Oy

Click here to read about eligibility to vote in Finland’s municipal elections.

As the local voice of international business, Amcham Finland spoke to three candidates about their visions for improving the attractiveness of Finland as a destination for talent and investment.

 

Atte Harjanne, Member of Parliament (Greens)

  1. Our membership comprises international leaders and Finnish business executives working for companies that operate internationally. Please tell us a bit about yourself and why you would be the right person to represent their interests in Helsinki.

I’m a 36-year-old member of parliament and city council member representing the Green party. Before my term in the parliament, I worked as a researcher studying the socio-economic impacts of climate change. I want to foster the ecologically sustainable, low-carbon growth of Helsinki as an international, creative and fun welfare city where people prosper and businesses thrive.

  1. Which actions could Helsinki take to be an internationally attractive destination for investment and talent alike?

As for talent, Helsinki needs to streamline all bureaucratic processes regarding international movement, and introduce a more human-centric focus. A lot depends on national level-legislation and state authorities, and thus Helsinki should be an active advocate for smooth internationalization. To attract investment, it’s important we have a clear city strategy anchored in growth and sustainability, as well as stable, transparent and predictable decision-making.

  1. International leaders and investors often struggle to feel included in decision-making processes in Finland. What are your suggestions on ways to regularly include international business in public-private dialogue in Helsinki? 

Transparency and active communication in English would probably be helpful. Events like summits and forums are a good way to create connections, but Helsinki is also a major business driver through its procurements, and can also arrange competitions and challenges. Through these, the city can help local and international actors to connect and find best practices and providers for the benefit of the city and its inhabitants.

  1. Please list the top three actions Helsinki could take to create more diversity and inclusion in the city.

In the end, it boils down to creating an inclusive culture in the city. Here are some ways the city can help:

  1. Language: Using English as a de facto official language alongside Finnish and Swedish, while at the same time making sure that there are enough possibilities to learn Finland’s official languages.
  2. Families: Immigrants often come with families. The needs and perspectives of spouses and kids should be kept in mind. This means ensuring ample career opportunities and adequate schooling.
  3. Systematic review: Helsinki should closely follow indicators about diversity and inclusion, and remove barriers and create incentives accordingly.

Jenni Pajunen, Member of Helsinki City Council (National Coalition Party)

  1. Our membership comprises international leaders and Finnish business executives working for companies that operate internationally. Please tell us a bit about yourself and why you would be the right person to represent their interests in Helsinki.

 I am National Coalition Party (Kokoomus) city councilor in Helsinki. I have lived abroad for 10 years so I can relate to how it feels being a foreigner.

My agenda derives from my experience at the World Bank. My goals include promoting entrepreneurship, attracting talent to Finland and having more services like basic education study places available in English. Globally, I want to help to solve the great challenges of our time: climate change and inequality. Locally, I want to make Helsinki the most functional city in the world.

  1. What actions could Helsinki take to be an internationally attractive destination for investment and talent alike?

 We need to make sure that our quality of life in Helsinki remains good and that we preserve nature for future generations. I have been advocating for a “15 minute city” where all key services are within 15 minutes from home.

For attracting talent and investment, we need to change attitudes in our labor market to be more welcoming towards international talent, make our taxation more attractive, and add more services, such as basic education study places in Helsinki.

 

  1. International leaders and investors often struggle to feel included in decision-making processes in Finland. What are your suggestions on ways to regularly include international business in public-private dialogue in Helsinki? 

 There has been some dialogue between top city officials and international companies, but it could definitely be scaled up and made more systematic. The city gathers data and feedback from companies in Helsinki, but we could target international companies more specifically and add more events and dialogue in English.

  1. Please list the top three actions Helsinki could take to create more diversity and inclusion in the city.
  1. Include diversity and inclusion in Helsinki as a goal in the next city strategy, and create clear metrics. Gather data on diversity and inclusion and take it into account in the decision making (we are doing some of this already).
  2. Promote positive examples from companies in Helsinki that have turned diversity and inclusion into an advantage and a new business.
  3. Promote equality and prevent segregation in Helsinki through school policies and inclusive urban planning.

Eveliina Heinaluoma, Member of Parliament of Finland (Social Democrats)

  1. Our membership comprises international leaders and Finnish business executives working for companies that operate internationally. Please tell us a bit about yourself and why you would be the right person to represent their interests in Helsinki.

I am a Member of Parliament and a city councilor in Helsinki. I have lived in Helsinki for most of my life, but I also have experience working in the UK and Brazil. From my experience, attitude is everything when welcoming people with an international background.

I feel that Finland’s strength lies in its people’s strong work ethic and high level of education. Climate change and coronavirus are emphasizing the value of space and greenery in the environment of the city. Helsinki’s uniqueness lies in its beautiful nature. It is one of the greenest capital cities in Europe.

 

  1. What actions could Helsinki take to be an internationally attractive destination for investment and talent alike?

Helsinki is an interesting destination for investment in terms of city development. The city of Helsinki is a reliable and stable environment for investment and talent. Our goal is to be the most functional city in the world. The quality of our public services is good, the traffic system works smoothly, and there are many highly-educated people. Helsinki should utilize public-private partnerships to develop a capital city that aims to be the most environmentally-friendly capital in Europe.

  1. International leaders and investors often struggle to feel included in decision-making processes in Finland. What are your suggestions on ways to regularly include international business in public-private dialogue in Helsinki? 

 My simple advice is to be active towards the decision-makers. In politics, dialogue is everything. Decision-makers need information from different organizations and interest groups to make good decisions.

 

  1. Please list the top three actions Helsinki could take to create more diversity and inclusion in the city.
  1. Helsinki should lead the way to create diversity and inclusion. We should seek to increase the number of employees of immigrant background to correspond with the share of people with immigrant backgrounds in the population of the city.
  2. We should improve the career development opportunities of employees who speak a language other than Finnish or Swedish as their first language.
  3. Helsinki was internationally recognized in 2012 for its age-conscious management, winning first prize in a contest for occupational wellbeing in all ages. This work should continue.