After World War II

After the war, 450,000 refugees from Soviet-controlled territories came to Finland. Under Soviet pressure, Finland refused to join in the European Recovery Program, and in 1948 signed a mutual nonaggression pact with the Soviet Union. This was renewed in 1955, and at the same time the Porkkala naval base was returned to Finland.

In 1955 Finland became a member of the United Nations and of the Nordic Council. Large loans from the United States in 1959 and from the International Bank for Reconstruction and Development in 1960 helped to build up Finland's industrial capacity. In 1961 Finland became a member of the European Free Trade Association.

In the 1960's, relations with the Soviet Union became closer through increased trade, although Finnish foreign policy was one of neutrality. Finland's nonaggression treaty with the Soviet Union was renewed again in 1970, and in 1973 Finland signed a trade pact with the European Community (now known as the European Union).

In 1981,President Urho Kekkonen, who had been reelected three times since assuming the Presidency in 1956, resigned because of failing health. In 1987, Harri Holkeri became the first prime minister from the Conservative party since 1946. He served until 1991. In 1995, Finland became a member of the European Union. Tarja Halonen, the first woman in Finland to be elected as President, took office in 2000. In 2006, Halonen won reelection.

Matti Vanhanen became head of the ruling Center Party and prime minister in 2003. In the 2007 parliamentary elections, Vanhanen's Center Party won a narrow victory with 51 seats in the 200-member parliament. The Finnish parliament reelected Vanhanen as prime minister. Vanhanen then formed a four-party coalition government, including the Green Union, the National Coalition Party, and the Swedish People's Party.