The Northern Dimension is just like a cross-border market for Finnish companies. The countries in the region account for almost a half of Finland's foreign trade. The Northern Dimension was given new impetus and strengthened at the end of last year.

The Northern Dimension, which came to life in Finland at the end of the 1990s, became the joint North European policy of the EU, Russia, Norway and Iceland at a summit held in Helsinki in November 2006. The aims and operating methods have been recorded in a Framework Document and Political Declaration.

The Northern Dimension was also linked with becoming part of the EU-Russia policy, in which economic matters, justice and internal affairs, security, research, education and culture are the areas for cooperation.

The new impetus is the answer business life was hoping for. The Northern Dimension is now a joint venture of all the parties, with high-level political support and a permanent steering group that will put more vigour into the activities.

"A renewed Northern Dimension will provide a stronger base for joint ventures in different fields in order to guarantee economic growth and wellbeing in northern Europe," Timo Laukkanen, an advisor at the Confederation of Finnish Industries (EK), emphasizes.

Cross-border markets a basis for growth

Laukkanen says that cross-border trade and investment have become much easier during the past ten years. "However, maintaining international competitiveness still holds plenty of challenges, many of which can be best faced through regional cooperation."

The significance of the cross-border markets is especially underlined in the operations of small and medium-sized companies. Smoothly operating cross-border markets can operate as expanded domestic markets and at the same time as growth bases for operating successfully on global markets.

"The countries in the Northern Dimension region account for a very large proportion of investment to and from Finland. Smoothly operating connections in the region are an important success factor for tourism and gateway activities as well as for transport and storage services," Laukkanen explains.

Pulled by environmental cooperation

The Northern Dimension's environmental partnership has been a success story for the environment, but it has led to other things: a joint model for productive cooperation between the EU, Russia, Norway, international financial institutions and regional councils.

The best-known of the projects that have been completed is the St Petersburg South West Waste Water Treatment Plant, which, since it came on-stream, has reduced the untreated water being led into the Gulf of Finland from St Petersburg by a third. The project, which cost almost 200 million euros, was financed with international loans, grants, capital investment and local funding.

"Another area for cooperation that has made a prominent start in recent years is the social affairs and health partnership. The aim of the cooperation is to improve the health and wellbeing of the inhabitants of the region by promoting lifestyles, preventing diseases and developing cooperation in an area's services," Laukkanen says.

At the moment the potential for partnership in transport and logistics is being looked into, as it is in energy, which could improve energy efficiency.

The Northern Dimension region - especially the Baltic Sea and Arctic areas, is sensitive environmentally. Environmental cooperation has achieved good results.