Post-war Finland and neutrality
After the Second World War, Finland faced the challenge of rebuilding its economy, resettling displaced people, and securing its independence in a divided Europe. A policy of neutrality became central to Finland’s foreign and security policy during the Cold War.
Reconstruction and war reparations
After 1945, Finland had to pay substantial war reparations to the Soviet Union. These reparations were delivered mainly in the form of industrial products, such as ships and machinery.
Meeting these obligations accelerated industrial development and contributed to the growth of Finland’s manufacturing sector.
Relations with the Soviet Union
Finland’s post-war foreign policy was shaped by its relationship with the Soviet Union. In 1948, Finland signed the Agreement of Friendship, Cooperation, and Mutual Assistance (YYA Treaty).
The treaty committed Finland to resist attacks by Germany or its allies but allowed Finland to remain outside military alliances. Maintaining trust with the Soviet Union was seen as essential for independence.
Neutrality policy
Finland adopted a policy of military non-alignment and neutrality during the Cold War. This meant avoiding participation in military blocs such as NATO or the Warsaw Pact.
Neutrality aimed to ensure security, preserve democracy, and allow Finland to act as a bridge between East and West.
The role of President Kekkonen
President Urho Kekkonen played a central role in post-war foreign policy. He emphasised stable relations with the Soviet Union while maintaining Finland’s democratic system and market economy.
Kekkonen’s long presidency shaped Finland’s political culture and foreign policy approach for decades.
International engagement
Despite neutrality, Finland actively participated in international organisations. Finland joined the United Nations in 1955 and later became known for peace mediation and diplomacy.
Hosting the Conference on Security and Cooperation in Europe (CSCE) in Helsinki in 1975 strengthened Finland’s international profile.