|40th Prime Minister of Finland|
24 June 2003 – 22 June 2010
|Preceded by||Anneli Jäätteenmäki|
|Succeeded by||Mari Kiviniemi|
|President of the European Council|
1 June 2006 – 31 December 2006
|Preceded by||Wolfgang Schüssel|
|Minister of Defense|
17 April 2003 – 24 June 2003
|Prime Minister||Anneli Jäätteenmäki|
|Preceded by||Jan-Erik Enestam|
|Born||4 November 1955
|Political party||Centre Party|
|Alma mater||University of Helsinki|
Matti Taneli Vanhanen ( pronunciation (help·info)) (born 4 November 1955) is a Finnish politician who was Prime Minister of Finland from 2003 to 2010. He was also Chairman of the Centre Party, and in the second half of 2006 he was President of the European Council. In his earlier career he was a journalist. Vanhanen is the son of professor Tatu Vanhanen and Anni Tiihonen.
Vanhanen studied political science at the University of Helsinki, graduating as a Master of Social Sciences in 1989. He was chairman of the Centre Party Youth League from 1980 to 1983. He also served as a member of the Espoo City Council from 1981 to 1984. Vanhanen used to work as a journalist. He was an editor (1985–1988) and editor-in-chief (1988–1991) at the local newspaper Kehäsanomat. In a column in Suomenmaa (the Centre Party's organ), he strongly condemned the Baltic Star pro-Estonian independence demonstration held in Helsinki in July 1985, calling the demonstration "provocative".
Vanhanen was elected to the Finnish Parliament (Eduskunta) in 1991. As a member of Parliament he was interested in ecological issues. For instance, Vanhanen spoke against the building of a fifth nuclear power plant in 1992, at the same time as serving on the board of electricity corporation Fortum. He served on the Parliamentary Environment Committee 1991–1995, and was chair of the Parliamentary Grand Committee 2000–2001. He was vice-chair of the Centre Party Parliamentary group 1994–2001, and Deputy Chairman of the Centre Party 2000–2003.
Another important topic for Vanhanen was Finland's foreign and security policy. As a specialist on the European Union he was a member of the European Union Constitutional Convention. There he criticised the president of the convention, former French president Valéry Giscard d'Estaing, as authoritarian. Vanhanen has said that he is unenthusiastic about European co-operation, and that he is an "EU pragmatist", so he may be considered a eurosceptic, especially when compared to his EU-enthusiast predecessor Paavo Lipponen.
Vanhanen's first cabinet
Vanhanen resigned from the Constitutional Convention in 2003 when he became Minister of Defense in the cabinet of Prime Minister Anneli Jäätteenmäki. After Jäätteenmäki's resignation, Vanhanen was elected Prime Minister and his first cabinet was formed.
As a politician, Vanhanen is considered to be part of the liberal wing of the old agrarian Central Party, along with the two other Party ministers from Uusimaa region. His government cut the top state income tax rate from 35.5% to 33.5% in 2005 and 32.5% in 2006 (resulting in approximately 55% total tax rate after local government and social security taxes). The corporate tax rate was also lowered to 26% and capital gains to 28% (both formerly 29%), though at the same time dividends were partially made taxable. Vanhanen has said he is willing to continue tax cuts.
As the Centre Party candidate, Vanhanen challenged President Tarja Halonen in the 2006 Finnish presidential election. He received 18.6% of the vote, coming third to the National Coalition Party's Sauli Niinistö (24.1%) and Social Democrat and incumbent Tarja Halonen (46.3%), and thus did not qualify for the runoff. Vanhanen expressed his support for Niinistö in the runoff election against his coalition partner's candidate Halonen.
The presidential election, and co-operation between Centre Party and National Coalition Party, proved to be a major strain on the government coalition between the Centre Party and Social Democrats. The flashpoint came in March, when the Centre Party demanded national agricultural subsidies to cover farmers' losses when the Finnish exception in the European Union's Common Agricultural Policy was about to expire. At the end of the crisis Vanhanen told his parliamentary group that taxpayers would cover ninety percent or about 100 million euros in losses.
Vanhanen's second cabinet
After the March 2007 election the Centre Party narrowly remained the largest party after losing four seats. However their coalition partner, the SDP, lost eight seats and the centre-right National Coalition Party gained ten. Vanhanen's second cabinet was formed on a centre-right basis, with minor partners the Green League and the Swedish People's Party.
A scandal involving Vanhanen's second cabinet began rolling in May 2008, after the leader of the Centre Party's parliamentary group Timo Kalli said publicly that he would not reveal information about his campaign finances, because such disclosure was not required. After a media backlash, Kalli gave up his secrecy and listed a group of businessmen known as "Kehittyvien maakuntien Suomi" (KMS; in English, "The Finland of Developing Regions"), who had financed the Centre Party. Centre Party links with KMS were suspected, as one address of the organisation belonged to a party official. It was later revealed that the organisation had been formed in the Centre Party's general secretary's office.
After the Russian response to the Georgian invasion of South Ossetia, Vanhanen said that Finland would rethink its security.
Vanhanen has proposed raising the retirement age from the current 63 to 65 years. His proposal was fiercely opposed by the Central Organisation of Finnish Trade Unions (Finnish acronym SAK), which is affiliated with the SDP.
In 2010, the Finnish police investigated whether Vanhanen had been wrong not to disqualify himself in certain cabinet decisions on financial contributions to an organisation affiliated with the Centre Party, which had previously financed Vanhanen's presidential campaign. Because the charges concerned Vanhanen's actions while in office, the decision whether he should be prosecuted fell to the Constitutional Law Committee of the Finnish Parliament. The Committee decided not to prosecute Vanhanen.
Vanhanen has been characterised as uncharismatic and even boring, which he has attempted to turn to his advantage in tense political situations. Vanhanen is known for being an teetotaler, saying that he does not like the taste of alcohol. He has been quoted as denying ever taking advice from other persons.
Matti Vanhanen was against the independence movement in the Baltic States during the 1980s. In his column in Suomenmaa in 1985, Vanhanen condemned the Baltic independence movement both for "wishing to change the Soviet system" and for "indifference towards the post Second World War reality." Vanhanen claimed that the difference between capitalism and socialism was not significant; and that instead of being concerned about the Soviet system, it would be better to concentrate, for example, on the research of Finno-Ugric languages.
In 2009, he visited China and credited the government for being systematic, as well as being able to place clear priorities and to mobilise the required resources to accomplish them. In his opinion, the Western world ought to note the example of China, where policies are implemented rapidly and effectively. He said he was impressed of the progress the country has made in dealing with difficult issues.
Vanhanen married Merja Vanhanen in 1985. They have two children: Annastiina (born 1991) and Juhana (born 1994). Matti Vanhanen and Merja Vanhanen unexpectedly announced their divorce on 6 April 2005, which had political repercussions for the self-styled family man.
Later there were claims in the tabloid press of affairs during and after his marriage. After his divorce, Susan Kuronen (she later changed her last name to Ruusunen) was widely linked to Vanhanen. but their relationship broke down. In February 2007, Kuronen released a tell-all book The Prime Minister's Bride, which actually boosted the prime minister's popularity with the public. Tens of thousands of Finns signed an online petition against the book and some bookstores refused to put it on the shelf. Vanhanen sued Kuronen for invasion of privacy in March 2007, following the March elections. In 2010 the Supreme Court of Finland upheld the privacy violation conviction against Susan Ruusunen and her publisher.
After ending his dating relationship with Kuronen (Ruusunen), Vanhanen got engaged to Sirkka Mertala in 2009. This relationship ended in 2010.
In a 2006 book commissioned for the presidential elections, Se on ihan Matti, Vanhanen compared the Finnish tabloid press to the KGB and Stasi, former Soviet Union and East German secret police agencies.
During the ASEM 2006 meeting in Helsinki, French president Jacques Chirac described Vanhanen, perhaps jokingly, as "the sexiest man in Finland." Vanhanen is about 198 cm (6'6"). He is left-handed.
Matti Vanhanen received 25,000 euros for his presidential election campaign in 2006 from Ahti Vilppula via his company Helsingin Mekaanikkotalo. Mekaanikkotalo is owned by Procomex in Luxembourg and further by Kilbrin Investments Limited in the Virgin Islands. In 2009 it was found out that this finance was not included in the finance announcement. Also Sauli Niinistö had not announced his finance 50,000 € from Ahti Vilppula in 2006 by 2009. Expert of state tax losses based on tax havens Mr Markku Hirvonen continues to state in 2013 that the resources in Finland are not sufficient to stop the tax losses.
Vanhanen served as Chairman of the Youth Foundation from 1998 to 2003 and Deputy chairman from 1981 to 1997. The prosecution claims the Youth Foundation donated under the direction of Centre Party MP Antti Kaikkonen funding of over 90,000 euros for his own campaign and that of other Centre Party MPs including Matti Vanhanen. Prosecutors say this contravened the Foundation's own rules and laws governing such institutions.
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- Matti Ylönen Veroparatiisit, 20 ratkaisua varjotalouteen Like 2008 page 108 (Finnish)
- Helsingin Sanomat 17 September 2009 A4
- Harmaan talouden tutkija: Veroparatiisien tutkintaan ei panosteta Suomessa yle 24 March 2013
- Vanhanen: No talk of campaign funding in Youth Foundation, Former Prime Minister Matti Vanhanen took the witness stand today in the trial of former leaders of the Youth Foundation yle 10 October 2012
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