Harri Mäki-Reinikka: Cyprus is a country with great investment potential

According to Finnish Ambassador Harri Mäki-Reinikka, when people have faith in their system and its institutions, and they have a good work-life balance (and a peaceful morning coffee), happiness is within reach.

He explains how Finland is ready for closer collaboration with Cyprus and suggests that it is time to move beyond words if we want the Cyprus Problem to be resolved.

He was speaking as part of the GOLD magazine’s February Cover Story, featuring 11 heads of diplomatic missions in Cyprus.

Finland consistently tops ‘global happiness’ surveys. What are the underlying factors contributing to the enduring happiness of the Finnish people?

My personal experience is that, despite the cold winter weather, many Finns are already happy when they get their regular morning coffee. This is a rather subjective view of mine, as I chaired the International Coffee Council in London (1994-1995)! But since then, per capita, Finns have also topped coffee consumption in the whole world. Is there a correlation? I don’t know but when you enjoy your morning coffee in peace, your basic needs are in order and you don’t feel lonely, that’s a fine mix to make you one of happiest people in the world. A more official view of the Finns’ happiness is that people trust the country’s democratic and fair society, the state and authorities, and they have a good work-life balance – education is largely free and healthcare is relatively well guaranteed. I would like to add another underlying factor, which is Finland’s beautiful nature: our huge forests, thousands of lakes and seaside areas, which are free to use for many activities – for example, skiing in winter skiing and hiking and swimming in summer.

Finland boasts one of the world’s most advanced family policies, aimed at prioritising that work-life balance that you mentioned. How does this policy work and what tangible effects has it had on society?

In Finland, children have a special place in society. Almost all pregnant women use the services of the maternity health clinics. Fathers accompany their partners to the clinic, where a public health nurse monitors the mother’s health, the baby’s development and the whole family’s wellbeing at regular intervals. When a child is born, the family receives a maternity package containing baby clothes as well as care products and materials. Family leave in Finland allows parents to stay at home and look after the child. Pregnancy leave lasts 40 and parental leave 320 working days (160 +160 for both parents who can transfer 63 days to each other or another person taking care of the child). After parental leave, people can take childcare leave until their child turns three. The most important forms of support for families are child benefit and day-care services. All parents of children under school age have a right to place their child in municipal day care provided by trained personnel. Children start compulsory preschool at age six. Pre-primary education is provided both in kindergartens and in schools. Family policies in Finland increase gender equality and employment promotion, take better account of different types of families, and help people bring up children in these challenging times.

In contrast to many EU countries, where pursuing a university degree often incurs significant student debt, Finland possesses one of the world’s finest higher education systems and offers it mostly free for EU students. Could you elaborate on the workings of this system and the primary motivations behind structuring a tuition-free system?

In Finland, education is free at all levels for pupils and students. There are no tuition fees from pre-primary to higher education. Adult education is the only form of education that may have fees in some cases. If you are a citizen of the EU country, the European Economic Area (EEA) or Switzerland, you can study in Finland for free. International students from other countries pay fees in most instances. It is important to know, however, that Finland is not a cheap country to live in. Some €700- €1,000 per month s needed to rent a room privately, at least in Helsinki. A dormitory or student hall of residence is the real money-saver but not easy to get. The cost of living in Finland is around 18% higher than in Cyprus. The main reason behind the free education system is that, in our egalitarian society, knowledge and lifelong learning are highly valued. The high level of education in Finland benefits the development of society, including business and industry. Education is also a collective economic issue. It can be a private investment but, for many, it is viewed as a civil right.

Last year, you engaged in discussions with the Mayor of Paphos and the Speaker of the House of Representatives about strengthening cultural and business ties between Finland and Cyprus. Can you tell us more about the specific areas where you believe there’s potential to grow ties between the two countries?

The Mayor of Paphos Mr. Phedonas Phedonos, and I talked about a direct flight connection with Finland. In winter, the Finnish national airline Finnair flies once/twice a week from Helsinki to Larnaca and soon (from April to the end of November) there will be four direct flights on that route. Finnair has informed the Embassy that it will focus on Larnaca but it would be beneficial for Paphos and its tourism if some other company could introduce a Helsinki-Paphos service. It was a very popular route in the past and could be again, as tourism from Finland to Cyprus is increasing, and hopefully vice-versa. I receive feedback from Finns suggesting that Paphos is the place where many would stay for a holiday if the flight connections were better. Overall arrivals from Finland numbered around 40,000 visitors last year. Moreover, Finland and Cyprus have a common interest in shipping, including green initiatives and winter navigation. Around 10% of the vessels in Finland are navigating under the Flag of Cyprus. I would like to mention that Finnish Smart Port solutions and green field investments in particular could improve the operational performance and decarbonizing of operations in Cyprus’ ports. In this connection, the most impressive vessel in the world, Icon of Seas, now under construction at the Meyer Turku shipyard in Finland, will revolutionize the cruising experience and perhaps this ship, like many other luxury cruise ships built in Finland, will one day visit Cyprus as well.

As you say, I have also spoken with House Speaker Annita Demetriou and others about ways of further strengthening cooperation between Cyprus and Finland in many areas, including healthcare, tourism and culture.

Investment flows between the two countries remain relatively modest. In which sectors do Finnish investors typically channel their investments? Do you envision expanding the investment avenues between Finland and Cyprus?

I have found that, in addition to being a ‘sun and sea’ destination and a world-class maritime cluster, Cyprus is a country with great investment potential. My message to Finnish investors and companies is clear: Cyprus is interconnected with the broader Mediterranean area and its geographical location enables companies to use Cyprus as a regional hub where English is widely spoken. Finland’s exports to Cyprus in 2017-2019 were greater than to Greece before the COVID-19 pandemic and much bigger than during the pandemic years 2020-2022 and even in 2023. So, increasing Finnish exports to Cyprus back to previous levels requires interest on the part of Finnish companies to reach the markets again – a specified demand from Cyprus is needed too. Therefore, we should share and provide more information about the expertise of Finnish companies to the Cypriot authorities, companies and stakeholders. Sharing information directly and indirectly through different channels can support the identification of potential projects for Finnish companies. Some Finnish companies (Kone/elevators, Wärtsilä/marine tech, diesel engines, digital voyage solutions, Valio/cheese, Nokia/5 G, 6 G, etc.) are well-known on the island but not always as Finnish companies. I think that Finland could support Cyprus much more in increasing the use of electricity from cleaner sources, in particular renewables. Finland could also help Cyprus in the digitalisation of its public services and digital education in schools. Cypriot companies and individuals who invest in Finland enjoy many things, including a stable political and reliable economic environment in the least corrupt country in the whole world. I would like to mention that your ‘white gold’ – halloumi – is a very popular cheese in Finland. It is found in every shop and is becoming even more popular on our summer grills. I am sure that Cypriot wines could also sell well in Finland if we found them in our restaurants and shops.

Are there any specific policy changes that you believe would be instrumental in further boosting bilateral relations between Cyprus and Finland?

Finland joined NATO in April 2023 and Cyprus is politically and financially orientating more and more to the west. On many issues, Finland and Cyprus are like-minded countries in the EU and the UN. In my view, it is vital to continue our common efforts to strengthen the EU and western cooperation for our benefit, for our bilateral political and commercial relationship. For example, cooperation on defence materials and equipment could be a new area commercially. Finland and Cyprus are both – in different ways – so-called ‘frontline countries’ but both are often viewed as being fairly distant geographically. This is not correct, since direct flights between Finland and Cyprus take around four hours, which is less than Larnaca-Brussels, for example. Europe’s northern and southern frontline countries have many common interests, such as immigration issues, and there is potential for many other areas of cooperation as well.

What can you tell us about the number of Finnish citizens residing in Cyprus and their main occupations?

There are some 400 Finns living on the island, contributing to the Cypriot economy and social life. Many came to marry a Cypriot spouse and around half of them are children of mixed marriages and already adults. The Embassy noticed during the advance voting in the Finnish presidential elections that there are newly arrived Finns as well – I assume that Cyprus attracts more students, young and skilled entrepreneurs from Finland due to its good weather and peaceful, well-functioning society. Some Finns work remotely from here for Finnish companies and the feedback I get from my compatriots is very positive – most of the Finns living in Cyprus are very happy.

How do you perceive Cyprus’ lifestyle and culture? Are there specific aspects of local life that have left a lasting impression on you during your time here?

I have already worked in Cyprus for three and half years and I’ll be leaving at the end of August. In the beginning, due to COVID-19, life had a few restrictions but since the end of the pandemic, my professional and personal life has been very active and nice. However, the Cyprus issue has been a challenge to diplomats throughout the years and the division of the island is still a reality, despite all the efforts made since 1964 and the war in 1974. Since 1964, more than 10,000 peacekeepers from Finland have served here and, for this reason, I felt it was my duty to contribute as much as possible to the continued efforts aimed at the reunification of the island. My belief as a diplomat is that there is no deadline regarding peace talks but, on a more realistic note, action should be taken the soonest possible. The solution to the Cyprus Problem requires more than declarations and announcements; it need a strong vision for the future, commitment and hard work from the grass-roots level up to the Head of the Government. The Cypriot people deserve more.

I have personally enjoyed of the beautiful landscape of the mountains and small villages, where the people are still natural, hardworking, genuine Cypriots characterized by honesty and respect. I have also enjoyed the beaches, sea, sun and different cities with their interesting characteristics. I believe that this small island has a rich culture, friendly people and a bright future.

(This interview first appeared in the February edition of GOLD magazine. Click here to view it.)