Finland's journey to join the European Union began after the dissolution of the Soviet Union in 1991. Although President Mauno Koivisto and two major political parties—the Center Party and the Social Democrats—initially opposed EU membership, preferring the European Economic Area (EEA) instead, the political landscape shifted after Sweden applied for EU membership in 1991. Finland followed suit and submitted its application in March 1992.
The process sparked widespread debate across party lines, despite official support from the major political parties. In a referendum held on 16 April 1994, 56.9% of Finns voted in favor of joining the EU. Finland officially became a member on 1 January 1995, alongside Austria and Sweden. Leading the country into the EU was seen as the main achievement of Prime Minister Esko Aho's government.
EU membership significantly altered Finland's economic policies. The Bank of Finland gained an inflation-targeting mandate, setting the stage for Finland to join the eurozone. Successive governments also initiated privatization of large state-owned companies, a trend that continued until 2008.