Finland at the helm of the EU

Finland has taken over the helm of the European Union at a time when the bloc is still to make up its mind over what to do over the European Constitution and before Germany takes over the presidency in January 2007, when many observers believe concrete decisions will be taken on the EU's future.

Furthermore, elections are taking place in May next year in France and the Netherlands - the two countries that rejected the Constitution in referenda - and these will have an important influence on any new direction of the Union.

This does not mean, however, that we can expect a lame-duck Finnish presidency. Far from it, as a small EU member state with an excellent European track record Finland has the potential for a very successful presidency. The last time Finland presided over the bloc, from July to December 1999, the presidency was a remarkable success.

I had covered the Helsinki December 1999 summit which was praised by all member states for its great achievements. Among these were the awarding of an EU candidate status to Turkey, the start of serious co-operation in justice and home affairs, the setting up of an EU crisis management system and a development of the EU's defence and security capabilities. The latter point is all the more notable, considering that Finland is a non-NATO neutral country.

These were important feats which have helped shaped the EU ever since. Today we seem to take it for granted that the EU should co-operate in these spheres and while the Turkish debate is still quite lively within the EU, the fact remains that the Helsinki consensus on Turkey was a landmark decision which was arrived at as a result of meticulous and intense Finnish diplomacy.

Even if there is a general feeling among the EU member states that the really big decisions on Europe's future will be taken during the next German presidency - Chancellor Angela Merkel seems to be greatly respected by her fellow EU colleagues - I have no doubt that Finland has a key role to play over the next six months in preparing the groundwork for some sort of grand agreement to be reached next year. In other words, a successful Finnish presidency is crucial for the German presidency to achieve worthwhile results. If Finland fails to achieve much, it is unlikely the Germans will fare better.

The main areas to be tackled by the Finnish presidency are the European Constitution and institutional reform, enlargement, competitiveness and further co-operation in justice and home affairs. The latter issue is important for us in Malta in view of the problem we are facing with illegal immigration.

On the Constitution and institutional reform, although no breakthroughs are expected this year, Finland will have to try and forge some sort of consensus - which it is very good at doing - over the future direction of Europe. Furthermore, the expected approval of the European Constitution by the Finnish Parliament in autumn should refocus the debate in Europe on this issue.

On the future enlargement of the EU, Finland has a very important role to play. It has always been very pro-enlargement and on the issue of Turkey, for example, it does not have a hostile public opinion to deal with, unlike Austria, the previous holder of the EU presidency. Helsinki can therefore perhaps be more objective when dealing with Turkey's EU bid. It also has the delicate task of trying to find a solution to Turkey's continual refusal to recognise Cyprus, which threatens to disrupt the country's EU bid throughout its negotiations. This already happened last month, as Turkey was about to close its first acquis chapter when this was vetoed by Cyprus. A temporary solution was found but the fact remains that Ankara still refuses to recognise the Mediterranean island.

Finland also has to preside over a decision on when Romania and Bulgaria should be admitted to the club, another landmark event. After that, the debate over just how far the EU is able to expand is likely to take place. Some countries are bound to keep insisting on the EU's 'absorption capacity' as a criterion for any future enlargement - which the Austrians wanted but failed to get agreement over - rather than simply being taken into consideration.

Whatever is decided I think that a real debate on Europe's borders should be initiated. One European Commission official told me in Brussels three weeks ago that Europe is not about borders but about 'common values'. While common values are essential when joining the bloc, I think it is wrong to say that the EU is only about such values. If this was the case then Australia, New Zealand, India, Canada and Japan, to name a few, which share common values with the EU, should be allowed to join the bloc if they so wish. Of course, this would be absurd because these countries are clearly not in Europe. Sooner or later Europe will have to define its borders and I hope such a debate begins in earnest under the Finnish presidency.

Finland is expected to put in a lot of effort at increasing co-operation between EU member states in justice, freedom and security. It was the 1999 Finnish presidency which started the ball rolling in this area and the Finns are keen to take this even further. Illegal immigration, asylum policy, international crime and terrorism and judicial co-operation are all expected to be given importance by the Finnish presidency, and that is to be greatly welcomed.

The Finnish government has pledged to focus on delivering results on concrete projects which will make a difference to the everyday lives of EU citizens - which will in turn make Europe more popular. Prime Minister Matti Vanhanen, often described as a pragmatic politician, has in fact backed European Commission President José Manuel Barroso's 'twin-track' approach to the EU which focuses of improving citizens' lives and not allowing the Union to stagnate in the absence of a constitutional treaty.

In a speech to the European Parliament last month, Mr Vanhanen said the EU had to "move on from mere reflection to delivering concrete results and implementing projects." He had described the EU's situation as a "vicious circle of weak legitimacy and ineffective decision-making."

The Finns will also push for progress in the area of competitiveness and innovation - where they have a very good record, the services directive, the British rebate, a common EU energy policy, and improved relations with Russia and Ukraine. I would say that the expectations for the Finnish EU presidency are quite high, and based on Finland's previous stint at the helm, we should witness another successful presidency.