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Finland-The Continuation War

Finland Index

[JPEG]

Marshal Gustaf Mannerheim, 1941
Courtesy Embassy of Finland, Washington

The sudden admission of defeat by the Finnish government shocked the Finnish people, who had been misled by overly optimistic government reports on the military situation; however, the resilience of democratic society helped the people to absorb defeat without undergoing radical change. Instead, the Finns threw themselves into two major tasks: absorbing the 400,000 refugees from the ceded territories, and rearming.

In the succeeding months, Soviet meddling in Finnish affairs and other overbearing actions indicated to the Finns a continuing Soviet desire to subjugate Finland. Among other actions, the Soviets demanded the demilitarization of the Aland Islands (not called for by the Peace of Moscow), control of the Petsamo nickel mines, and the expulsion of Vainö Tanner from the Finnish government. More ominously, the Soviets demanded to send an unlimited number of troop trains through Finnish territory to the Soviet base at Hanko. Occurring at about the same time that the Soviets annexed the Baltic states in June and July 1940, the Finns began to fear that they would be next. When Soviet foreign minister Viacheslav Molotov visited Berlin later that year, he admitted privately to his German hosts that the Soviets intended to crush Finland. The Finnish-Soviet Peace and Friendship Society (Suomen-Neuvostoliiton rauhan ja ystavyyden seura--SNS), a communist-front organization that quickly gained 35,000 Finnish members, conducted subversive activities in open defiance of the Finnish government. The SNS was banned in August, thus preserving public order, but on other matters of concern to the Soviets the Finnish government was forced to make concessions. Unknown to the Soviets, however, the Finns had made an agreement with Germany in August 1940 that had stiffened their resolve.

Hitler soon saw the value of Finland as a staging base for his forthcoming invasion of the Soviet Union. The informal German-Finnish agreement of August 1940 was formalized in September, and it allowed Germany the right to send its troops by railroad through Finland, ostensibly to facilitate Germany's reinforcement of its forces in northern Norway. A further GermanFinnish agreement in December 1940 led to the stationing of German troops in Finland, and in the coming months they arrived in increasing numbers. Although the Finnish people knew only the barest details of the agreements with Germany, they approved generally of the pro-German policy, and they were virtually unanimous in wanting to recover the ceded territories.

By the spring of 1941, the Finnish military had joined the German military in planning for the invasion of Russia. In midJune the Finnish armed forces were mobilized. It was not politically expedient for the Finnish government to appear as the aggressor, however, so Finland at first took no part in the Nazi invasion of the Soviet Union on June 22. Three days later, Soviet aerial attacks against Finland gave the Finnish government the pretext needed to open hostilities, and war was declared on June 26. Finland thus appeared to be defending itself against an act of Soviet aggression, a posture that helped unite the Finnish people for the war effort.

The Finns called this conflict the Continuation War, because it was seen as a continuation of events that began with the Winter War. What began as a defensive strategy, designed to provide a German counterweight to Soviet pressure, ended as an offensive strategy, aimed at invading the Soviet Union. The Finns had been lured by the prospects of regaining their lost territories and ridding themselves of the Soviet threat. In July 1941, the Finnish army began a major offensive on the Karelian Isthmus and north of Lake Ladoga, and by the end of August 1941, Finnish troops had reached the prewar boundaries. By December 1941, the Finnish advance had reached the outskirts of Leningrad and the Svir River (which connects the southern ends of Lake Ladoga and Lake Onega). By the end of 1941, the front became stabilized, and the Finns did not conduct major offensive operations for the following two and one-half years.

Finland's participation in the war brought major benefits to Germany. First, the Soviet fleet was blockaded in the Gulf of Finland, so that the Baltic was freed for training German submarine crews as well as for German shipping activities, especially the shipping of vital iron ore from northern Sweden and nickel from the Petsamo area. Second, the sixteen Finnish divisions tied down Soviet troops, put pressure on Leningrad, and cut one branch of the Murmansk Railroad. Third, Sweden was further isolated and was forced to comply with German wishes.

Despite Finland's contributions to the German cause, the Western Allies had ambivalent feelings, torn between their residual goodwill for Finland and the need to support their vital ally, the Soviet Union. As a result, Britain declared war against Finland, but the United States did not; there were no hostilities between these countries and Finland. In the United States, Finland was highly regarded, because it had continued to make payments on its World War I debt faithfully throughout the interwar period. Finland also earned respect in the West for its refusal to allow the extension of Nazi anti-Semitic practices in Finland. Jews were not only tolerated in Finland, but Jewish refugees also were allowed asylum there. In a strange paradox, Finnish Jews fought in the Finnish army on the side of Hitler.

Finland began to seek a way out of the war after the disastrous German defeat at Stalingrad in January-February 1943. Negotiations were conducted intermittently between Finland on the one side and the Western Allies and the Soviet Union on the other, from 1943 to 1944, but no agreement was reached. As a result, in June 1944 the Soviets opened a powerful offensive against Finnish positions on the Karelian Isthmus and in the Lake Ladoga area. On the second day of the offensive, the Soviet forces broke through Finnish lines, and in the succeeding days they made advances that appeared to threaten the survival of Finland. The Finns were equal to the crisis, however, and with some German assistance, halted the Russians in early July, after a retreat of about one hundred kilometers that brought them to approximately the 1940 boundary. Finland had been a sideshow for the Soviets, however, and they then turned their attention to Poland and to the Balkans. Although the Finnish front was once again stabilized, the Finns were exhausted, and they needed desperately to get out of the war. Finland's military leader and national hero, Gustaf Mannerheim, became president, and he accepted responsibility for ending the war.

In September 1944, a preliminary peace agreement was signed in Moscow between the Soviet Union and Finland. Its major terms severely limited Finish sovereignty. The borders of 1940 were reestablished, except for the Petsamo area, which was ceded to the Soviet Union. Finland was forced to expel all German troops from its territory. The Porkkala Peninsula (southwest of Helsinki) was leased to the Soviets for fifty years, and the Soviets were given transit rights to it. Various rightist organizations were abolished, including the Civil Guard, Lotta Svard, the Patriotic People's Movement, and the Academic Karelia Society. The Communist Party of Finland (Suomen Kommunistinen Puolue--SKP) was allowed legal status. The size of the Finnish armed forces was restricted. Finland agreed to pay reparations to the Soviet Union. Finland agreed to hold war crimes trials. Finally, an Allied Control Commission, which was dominated by the Soviets, was established to check Finland's adherence to the terms of the preliminary peace. This preliminary peace treaty remained in effect until 1947, when the final Soviet-Finnish peace treaty was signed. Although Finland had been defeated for a second time, it had managed to avoid occupation by the Soviets.

Data as of December 1988



BackgroundFinland was a province and then a grand duchy under Sweden from the 12th to the 19th centuries, and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now among the highest in Western Europe. A member of the European Union since 1995, Finland was the only Nordic state to join the euro system at its initiation in January 1999.
LocationNorthern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia
Area(sq km)total: 338,145 sq km
land: 303,815 sq km
water: 34,330 sq km
Geographic coordinates64 00 N, 26 00 E
Land boundaries(km)total: 2,654 km
border countries: Norway 727 km, Sweden 614 km, Russia 1,313 km

Coastline(km)1,250 km

Climatecold temperate; potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes

Elevation extremes(m)lowest point: Baltic Sea 0 m
highest point: Haltiatunturi 1,328 m
Natural resourcestimber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver, limestone
Land use(%)arable land: 6.54%
permanent crops: 0.02%
other: 93.44% (2005)

Irrigated land(sq km)640 sq km (2003)
Total renewable water resources(cu km)110 cu km (2005)
Freshwater withdrawal (domestic/industrial/agricultural)total: 2.33 cu km/yr (14%/84%/3%)
per capita: 444 cu m/yr (1999)
Natural hazardsNA
Environment - current issuesair pollution from manufacturing and power plants contributing to acid rain; water pollution from industrial wastes, agricultural chemicals; habitat loss threatens wildlife populations
Environment - international agreementsparty to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified: none of the selected agreements
Geography - notelong boundary with Russia; Helsinki is northernmost national capital on European continent; population concentrated on small southwestern coastal plain
Population5,250,275 (July 2009 est.)
Age structure(%)0-14 years: 16.4% (male 438,425/female 422,777)
15-64 years: 66.8% (male 1,773,495/female 1,732,792)
65 years and over: 16.8% (male 357,811/female 524,975) (2009 est.)
Median age(years)total: 42.1 years
male: 40.5 years
female: 43.7 years (2009 est.)
Population growth rate(%)0.098% (2009 est.)
Birth rate(births/1,000 population)10.38 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)10.07 deaths/1,000 population (July 2009 est.)

Net migration rate(migrant(s)/1,000 population)0.68 migrant(s)/1,000 population (2009 est.)
Urbanization(%)urban population: 63% of total population (2008)
rate of urbanization: 0.8% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)at birth: 1.04 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 1.02 male(s)/female
65 years and over: 0.68 male(s)/female
total population: 0.96 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)total: 3.47 deaths/1,000 live births
male: 3.78 deaths/1,000 live births
female: 3.15 deaths/1,000 live births (2009 est.)

Life expectancy at birth(years)total population: 78.97 years
male: 75.48 years
female: 82.61 years (2009 est.)

Total fertility rate(children born/woman)1.73 children born/woman (2009 est.)
Nationalitynoun: Finn(s)
adjective: Finnish
Ethnic groups(%)Finn 93.4%, Swede 5.6%, Russian 0.5%, Estonian 0.3%, Roma (Gypsy) 0.1%, Sami 0.1% (2006)

Religions(%)Lutheran Church of Finland 82.5%, Orthodox Church 1.1%, other Christian 1.1%, other 0.1%, none 15.1% (2006)
Languages(%)Finnish 91.2% (official), Swedish 5.5% (official), other 3.3% (small Sami- and Russian-speaking minorities) (2007)

Country nameconventional long form: Republic of Finland
conventional short form: Finland
local long form: Suomen tasavalta/Republiken Finland
local short form: Suomi/Finland
Government typerepublic
Capitalname: Helsinki
geographic coordinates: 60 10 N, 24 56 E
time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions6 provinces (laanit, singular - laani); Ahvenanmaan Laani (Aland), Etela-Suomen Laani (Southern Finland), Ita-Suomen Laani (Eastern Finland), Lansi-Suomen Laani (Western Finland), Lapin Laani (Lapland), Oulun Laani
Constitution1-Mar-00

Legal systemcivil law system based on Swedish law; the president may request the Supreme Court to review laws; accepts compulsory ICJ jurisdiction with reservations

Suffrage18 years of age; universal
Executive branchchief of state: President Tarja HALONEN (since 1 March 2000)
head of government: Prime Minister Matti VANHANEN (since 24 June 2003); Deputy Prime Minister Jyrki KATAINEN (since 19 April 2007)
cabinet: Council of State or Valtioneuvosto appointed by the president, responsible to parliament
elections: president elected by popular vote for a six-year term (eligible for a second term); election last held 15 January 2006 (next to be held in January 2012); the president appoints the prime minister and deputy prime minister from the majority party or the majority coalition after parliamentary elections and the parliament must approve the appointment; Prime Minister VANHANEN reelected 17 April 2007
election results: percent of vote - Tarja HALONEN (SDP) 46.3%, Sauli NIINISTO (Kok) 24.1%, Matti VANHANEN (Kesk) 18.6%, Heidi HAUTALA (VIHR) 3.5%; a runoff election between HALONEN and NIINISTO was held 29 January 2006 - HALONEN 51.8%, NIINISTO 48.2%; Matti VANHANEN reelected prime minister; election results 121-71
note: government coalition - Kesk, KOK, VIHR, and SFP
Legislative branchunicameral Parliament or Eduskunta (200 seats; members are elected by popular vote on a proportional basis to serve four-year terms)
elections: last held 18 March 2007 (next to be held March 2011)
election results: percent of vote by party - Kesk 23.1%, Kok 22.3%, SDP 21.4%, VAS 8.8%, VIHR 8.5%, KD 4.9%, SFP 4.5%, True Finns 4.1%, other 3.4%; seats by party - Kesk 51, Kok 50, SDP 45, VAS 17, VIHR 15, SFP 9, KD 7, True Finns 5, other 1

Judicial branchSupreme Court or Korkein Oikeus (judges appointed by the president)

International organization participationADB (nonregional member), AfDB (nonregional member), Arctic Council, Australia Group, BIS, CBSS, CE, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G-9, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURCAT, NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PFP, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIL, UNMIS, UNMOGIP, UNTSO, UPU, WCO, WEU (observer), WFTU, WHO, WIPO, WMO, WTO, ZC
Flag descriptionwhite with a blue cross extending to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag); the blue represents the thousands of lakes scattered across the country, while the white is for the snow that covers the land in winter

Economy - overviewFinland has a highly industrialized, largely free-market economy with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important; Finland's ratio of exports to GDP has risen from a quarter to 37% over the past 15 years. Finland excels in high-tech exports such as mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Although Finland has been one of the best performing economies within the EU in recent years and its banks and financial markets have avoided the worst of global financial crisis, the world slowdown has hit export growth and domestic demand and will serve as a brake on economic growth in 2009 and 2010. The slowdown of construction, other investment, and exports will cause unemployment to rise. During 2009, unemployment will climb to over 8% of the labor force. Long-term challenges include the need to address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.
GDP (purchasing power parity)$194 billion (2008 est.)
$192.4 billion (2007 est.)
$184.8 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate)$271.9 billion (2008 est.)
GDP - real growth rate(%)0.8% (2008 est.)
4.1% (2007 est.)
4.9% (2006 est.)
GDP - per capita (PPP)$37,000 (2008 est.)
$36,700 (2007 est.)
$35,300 (2006 est.)
note: data are in 2008 US dollars
GDP - composition by sector(%)agriculture: 2.8%
industry: 32.4%
services: 64.9% (2008 est.)
Labor force2.703 million (2008 est.)

Labor force - by occupation(%)agriculture and forestry 4.5%, industry 18.3%, construction 7.3%, commerce 16%, finance, insurance, and business services 14.5%, transport and communications 7%, public services 32.4% (2008)
Unemployment rate(%)6.4% (2008 est.)
6.9% (2007 est.)
Population below poverty line(%)NA%
Household income or consumption by percentage share(%)lowest 10%: 3.6%
highest 10%: 24.7% (2007)
Distribution of family income - Gini index29.5 (2007)
25.6 (1991)
Investment (gross fixed)(% of GDP)20.6% of GDP (2008 est.)
Budgetrevenues: $143.8 billion
expenditures: $132.3 billion (2008 est.)
Inflation rate (consumer prices)(%)4.1% (2008 est.)
2.5% (2007 est.)

Stock of money$NA (31December 2008)
$NA (31 December 2007)
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
Stock of quasi money$NA (31 December 2008)
$NA (31 December 2007)
Stock of domestic credit$241.1 billion (31 December 2008)
$225.4 billion (31 December 2007)
Market value of publicly traded shares$NA (31 December 2008)
$369.2 billion (31 December 2007)
$265.5 billion (31 December 2006)
Public debt(% of GDP)33.7% of GDP (2008 est.)
46.8% of GDP (2004 est.)
Agriculture - productsbarley, wheat, sugar beets, potatoes; dairy cattle; fish
Industriesmetals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing

Industrial production growth rate(%)0.4% (2008 est.)

Current account balance$5.518 billion (2008 est.)
$10.12 billion (2007 est.)
Exports$96.62 billion (2008 est.)
$90.2 billion (2007 est.)

Exports - commodities(%)electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber
Exports - partners(%)Russia 11.6%, Sweden 10%, Germany 10%, US 6.4%, UK 5.5%, Netherlands 5.1% (2008)
Imports$87.51 billion (2008 est.)
$78.22 billion (2007 est.)

Imports - commodities(%)foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, grains
Imports - partners(%)Russia 16.3%, Germany 15.7%, Sweden 13.6%, Netherlands 6.3%, China 5.1%, UK 4.2% (2008)

Reserves of foreign exchange and gold$8.346 billion (31 December 2008 est.)
$8.385 billion (31 December 2007 est.)
Debt - external$339.5 billion (31 December 2008)
$314.1 billion (31 December 2007)

Stock of direct foreign investment - at home$84.44 billion (31 December 2008 est.)
$88.69 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad$116 billion (31 December 2008 est.)
$114.2 billion (31 December 2007 est.)
Exchange rateseuros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Currency (code)euro (EUR)

Telephones - main lines in use1.65 million (2008)
Telephones - mobile cellular6.83 million (2008)
Telephone systemgeneral assessment: modern system with excellent service
domestic: digital fiber-optic fixed-line network and an extensive cellular network provide domestic needs
international: country code - 358; submarine cables provide links to Estonia and Sweden; satellite earth stations - access to Intelsat transmission service via a Swedish satellite earth station, 1 Inmarsat (Atlantic and Indian Ocean regions); note - Finland shares the Inmarsat earth station with the other Nordic countries (Denmark, Iceland, Norway, and Sweden)
Internet country code.fi; note - Aland Islands assigned .ax
Internet users4.383 million (2008)
Airports148 (2009)
Pipelines(km)gas 694 km (2008)
Roadways(km)total: 78,141 km
paved: 50,914 km (includes 700 km of expressways)
unpaved: 27,227 km (2009)

Ports and terminalsHamina, Helsinki, Kokkola, Kotka, Naantali, Pori, Raahe, Rauma, Turku
Military branchesFinnish Defense Forces (FDF): Army, Navy (includes Coastal Defense Forces), Air Force (Suomen Ilmavoimat) (2007)
Military service age and obligation(years of age)18 years of age for male voluntary and compulsory - and female voluntary - national military and nonmilitary service; service obligation 6-12 months; mandatory retirement at age 60 (2008)
Manpower available for military servicemales age 16-49: 1,169,910
females age 16-49: 1,121,187 (2008 est.)
Manpower fit for military servicemales age 16-49: 962,479
females age 16-49: 920,297 (2009 est.)
Manpower reaching militarily significant age annuallymale: 33,784
female: 32,621 (2009 est.)
Military expenditures(% of GDP)2% of GDP (2005 est.)
Disputes - internationalvarious groups in Finland advocate restoration of Karelia and other areas ceded to the Soviet Union, but the Finnish Government asserts no territorial demands

Electricity - production(kWh)77.24 billion kWh (2007 est.)
Electricity - production by source(%)fossil fuel: 39%
hydro: 18.7%
nuclear: 30.4%
other: 11.8% (2001)
Electricity - consumption(kWh)86.9 billion kWh (2008)
Electricity - exports(kWh)3.335 billion kWh (2008 est.)
Electricity - imports(kWh)16.11 billion kWh (2008 est.)
Oil - production(bbl/day)9,789 bbl/day (2008 est.)
Oil - consumption(bbl/day)215,600 bbl/day (2008 est.)
Oil - exports(bbl/day)133,000 bbl/day (2008 est.)
Oil - imports(bbl/day)347,400 bbl/day (2008 est.)
Economic aid - donorODA, $1.023 billion (2007)

Oil - proved reserves(bbl)0 bbl
Natural gas - production(cu m)0 cu m (2008 est.)
Natural gas - consumption(cu m)4.735 billion cu m (2008 est.)
Natural gas - exports(cu m)0 cu m (2008)
Natural gas - proved reserves(cu m)0 cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)less than 0.1% (2007 est.)
HIV/AIDS - people living with HIV/AIDS2,400 (2007 est.)
HIV/AIDS - deathsfewer than 100 (2003 est.)
Literacy(%)definition: age 15 and over can read and write
total population: 100%
male: 100%
female: 100% (2000 est.)

School life expectancy (primary to tertiary education)(years)total: 17 years
male: 17 years
female: 18 years (2006)
Education expenditures(% of GDP)6.4% of GDP (2005)



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