Karl-August Fagerholm
Encyclopedia
Karl-August Fagerholm was Speaker of Parliament
Parliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...

  and three times Prime Minister of Finland
Prime Minister of Finland
The Prime Minister is the Head of Government of Finland. The Prime Minister is appointed by the President, who is the Head of State. The current Prime Minister is Jyrki Katainen of the National Coalition Party.-Overview:...

 (1948–50, 1956–57, and 1958). Fagerholm became chairman of the Social Democrats
Social Democratic Party of Finland
The Social Democratic Party of Finland is one of the three major political parties in Finland, along with the Centre Party and the National Coalition Party. Jutta Urpilainen is the current SDP leader. The party has been in the Finnish government cabinet for long periods and has set many...

 after the armistice in the Continuation War
Continuation War
The Continuation War was the second of two wars fought between Finland and the Soviet Union during World War II.At the time of the war, the Finnish side used the name to make clear its perceived relationship to the preceding Winter War...

. As a Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...

-oriented Swedish-speaking Finn, he was believed to be more to the taste of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

's leadership than his predecessor Väinö Tanner
Väinö Tanner
Väinö Tanner was a pioneer and leader in the cooperative movement in Finland, and Prime Minister of Finland from 1926 to 1927....

. Fagerholm's post-war career was however marked by fierce opposition from both the Kremlin
Politics of the Soviet Union
The political system of the Soviet Union was characterized by the superior role of the Communist Party of the Soviet Union , the only party permitted by Constitution.For information about the government, see Government of the Soviet Union-Background:...

 and domestic communists
Communist Party of Finland
The Communist Party of Finland was a communist political party in Finland. The SKP was a section of Comintern and illegal in Finland until 1944.SKP did not participate in any elections with its own name. Instead, front organisations were used...

.

1930s

Fagerholm had in his youth briefly been chairman (1920–23) of the Barbers' Union. In 1930 he was elected member of Finland's Parliament. Both in the 1920s and in the 1930s, the main challenge for the Social Democrats was the rehabilitation after the Finnish Civil War
Finnish Civil War
The Finnish Civil War was a part of the national, political and social turmoil caused by World War I in Europe. The Civil War concerned control and leadership of The Grand Duchy of Finland as it achieved independence from Russia after the October Revolution in Petrograd...

, in which the Social Democrats had belonged to the defeated side. A revival of anti-Socialist opinion had in Finland like in many countries in Continental Europe
Continental Europe
Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands....

 led to a right-wing turn
Right-wing politics
In politics, Right, right-wing and rightist generally refer to support for a hierarchical society justified on the basis of an appeal to natural law or tradition. To varying degrees, the Right rejects the egalitarian objectives of left-wing politics, claiming that the imposition of equality is...

 in the public opinion and the emerge of the semi-fascist Lapua Movement
Lapua Movement
The Lapua Movement , was a Finnish radical nationalist and anti-communist political movement founded in and named after the town of Lapua. After radicalisation it turned towards far-right politics and was banned after a failed coup-d'état in 1932...

. As one of the consequences, Socialists
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

 were barred from Cabinet 1929–37. When, finally, principles of parliamentarism again were heeded in 1937, Fagerholm became Minister for Social Affairs in a series of Cabinets 1937–1943.

In government, Fagerholm was one of the chief executors of the neutralist Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...

-orientation, that in the 1930s increasingly had been seen as Finland's deliverance from the danger of Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

n expansionism – both by Conservatives and Socialists – a danger that seemed to have increased with fierce Soviet anti-Capitalist
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

 sentiments being met with equally fierce anti-Bolshevist sentiments in Finland. As native Swedish
Finland-Swedish
Finland Swedish is a general term for the closely related cluster of dialects of Swedish spoken in Finland by Swedish-speaking Finns as their mother tongue...

 speaker, Social Democrat, former Union leader, and head of the Ministry for Social Affairs, he was just cut out for this task. The time given was however too short.

During the Winter War and the Continuation War

When the Winter War
Winter War
The Winter War was a military conflict between the Soviet Union and Finland. It began with a Soviet offensive on 30 November 1939 – three months after the start of World War II and the Soviet invasion of Poland – and ended on 13 March 1940 with the Moscow Peace Treaty...

 broke out, suspicions against Finland's "hazardous foreign politics" remained strong, most importantly among leading Social Democrats in Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

. As the Winter War ended with the loss of Finnish Karelia
Finnish Karelia
Karelia is a historical province of Finland. It refers to the Western Karelia that during the second millennium has been under western dominance, religiously and politically. Western, i.e. Finnish Karelia is separate from Eastern, i.e...

, this was generally seen as the failure of the neutralist Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...

-orientation. As Soviet
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 disapproval ended the discussions on a Swedish-Finnish defence cooperation in 1940, the Scandinavist line had run into a blind alley — and Fagerholm had no more say in the policy discussions that ultimately led to close dependency of Nazi Germany
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...

, German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 troops on Finnish soil
Soil
Soil is a natural body consisting of layers of mineral constituents of variable thicknesses, which differ from the parent materials in their morphological, physical, chemical, and mineralogical characteristics...

, revanchism
Revanchism
Revanchism is a term used since the 1870s to describe a political manifestation of the will to reverse territorial losses incurred by a country, often following a war or social movement. Revanchism draws its strength from patriotic and retributionist thought and is often motivated by economic or...

, and to co-belligerence
Co-belligerence
Co-belligerence is the waging of a war in cooperation against a common enemy without a formal treaty of military alliance.Co-belligerence is a broader and less precise status of wartime partnership than a formal military alliance. Co-belligerents may support each other materially, exchange...

 in the Continuation War
Continuation War
The Continuation War was the second of two wars fought between Finland and the Soviet Union during World War II.At the time of the war, the Finnish side used the name to make clear its perceived relationship to the preceding Winter War...

.

During the Continuation War, controversies on 68,000 refugee
Refugee
A refugee is a person who outside her country of origin or habitual residence because she has suffered persecution on account of race, religion, nationality, political opinion, or because she is a member of a persecuted 'social group'. Such a person may be referred to as an 'asylum seeker' until...

s internment in labor camp
Labor camp
A labor camp is a simplified detention facility where inmates are forced to engage in penal labor. Labor camps have many common aspects with slavery and with prisons...

s in the vicinity of German troops, and particularly concerning a scandalous deportation of eight Jewish refugees to Gestapo
Gestapo
The Gestapo was the official secret police of Nazi Germany. Beginning on 20 April 1934, it was under the administration of the SS leader Heinrich Himmler in his position as Chief of German Police...

 on November 6, 1942, prompted Fagerholm to raise the question of his resignation. After the Battle of Stalingrad
Battle of Stalingrad
The Battle of Stalingrad was a major battle of World War II in which Nazi Germany and its allies fought the Soviet Union for control of the city of Stalingrad in southwestern Russia. The battle took place between 23 August 1942 and 2 February 1943...

, when it increasingly became obvious that Nazi Germany was about to be defeated in World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, the Cabinet of Edwin Linkomies
Edwin Linkomies
Edwin Johannes Hildegard Linkomies was Prime Minister of Finland March 1943 to August 1944, and one of the seven politicians sentenced to 5½ years in prison as allegedly responsible for the Continuation War, on the demand of the Soviet Union...

 was appointed to seek peace with Britain and the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

. Fagerholm was not included.

The end of hostilities in September 1944, found Finland in a thoroughly weakened state economically
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

. In addition to its human and physical losses, Finland had to deal with more than 400,000 evacuees from the territories once again lost to the Soviet Union. War reparations were another burden for Finland. The reparations paid 1944–1952 amounted to an annual average of more than 2 % of Finland's gross national product. The reparations were delivered according to a strict schedule, with penalties for late shipments. By inciting strikes and other disturbances at moments critical for scheduled delivers, the Soviet Union tried both to strengthen the influence of the domestic Communists
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

, and to exert direct pressure on the government.

Post-war years

It was in this phase that Karl-August Fagerholm was elected chairman of Finland's Social Democrats. Väinö Tanner was seen with the uttermost suspicion not only by Finnish Communists, but by many Social Democrats as well, and by the leadership in Sweden and, most importantly, by the Soviet Union. Tanner necessarily had to resign. For the third time, like in 1920 and 1930, Fagerholm's main task was to rehabilitate and consolidate the Social Democrats. This time, however, the accusations came from the left
Left-wing politics
In politics, Left, left-wing and leftist generally refer to support for social change to create a more egalitarian society...

. Fagerholm appeared as the least enthusiastic of the leading advocates for the Continuation War, and could thus be elected as sort of a compromise candidate, accepted by both the Tanner-supporting majority and by the critics of the War, sympatisants of the Six and the so called "peace opposition
Peace opposition
Peace opposition is a term used to describe a Finnish cross-party movement uniting both bourgeois politicians like Paasikivi, Kekkonen, Sakari Tuomioja etc. and social democrats, aiming at stepping out of the war and finding a way to conclude peace with the Soviet Union...

" concentrated in the Swedophone part of the Labor Union and Social Democracy.

The Soviet victory in World War II had greatly improved the prestige of their supporters in Finland. When in 1946 the Communist Mauno Pekkala
Mauno Pekkala
Mauno Pekkala was a Finnish left-wing politician and Prime Minister from 1946 to 1948 . Pekkala was a member of the Social Democratic Party of Finland until he left the party during the Continuation war. After the war, Pekkala joined the Finnish People's Democratic League , an alliance of...

 became after successful elections the Prime Minister for a coalition cabinet  including also the Social Democrats, Fagerholm could concentrate on his role as party chairman, remaining outside the cabinet. It was Fagerholm's conviction that Communists could not be defeated with repressive methods, as had been tried since the Civil War. Communism was to be countered in free debate and free elections. The battle of the late 1940s was that in the trade unions, where boards and representatives were elected proportionally. The Social Democrats succeeded to fend off or reverse Communist takeovers more often than not.

1948 elections and Fagerholm as PM

When new parliament elections were held in July 1948, the Communists suffered a sharp drop in support, falling from fifty-one to thirty-eight seats. Communists had demanded the posts of prime minister and either ministry for foreign ffairs or internal affairs and as the result were not included in the new minority cabinet led by Fagerholm (there was no communist participation in Finland's government again until 1966). Fagerholm's minority government mostly relied on support by deputies of the Conservative and Liberal parties plus the conservative wing of the Agrarian League.

As leader of the Social Democrats, he was prime minister from 1948 to 1950, despite fierce Communist opposition and accusations by the Soviet Union that he intended to undermine the Finnish-Soviet YYA Treaty by taking Finland into NATO. Even Finland's growing integration into the world economy, as demonstrated by its joining the General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...

 (GATT) in 1949, was viewed with similar suspicion. It did, however, serve Soviet interests in as much as it contributed to Finland's ability to meet the harsh war reparations requirements of the 1947 Paris Peace Treaty
Paris Peace Treaties, 1947
The Paris Peace Conference resulted in the Paris Peace Treaties signed on February 10, 1947. The victorious wartime Allied powers negotiated the details of treaties with Italy, Romania, Hungary, Bulgaria, and Finland .The...

.

Opposition from the domestic Communists (under Soviet guidance) exemplified by communist strike agitators who in 1949 tried to take over the dockworker's union and indirectly threatened the stability of the government of Karl-August Fagerholm.

1950s

The war times, and the post-war times of economic hardship, had motivated government control of prices and wages attempting to hamper inflation. One of the themes in the elections, and hence one of the important objectives for Fagerholm's government, was to transfer the handling of incomes policy to negotiations between the unions and employers' organizations. In January 1950, the Parliament agreed to increase wages and end wage controls.

Soon after this a minority cabinet under Kekkonen assumed power. Wage negotiations ended in an impasse in the spring. A warning of general strike was issued, in order to speed up the negotiations. In this tense situation, Fagerholm, now Speaker of Parliament, brokered a solution which was supported in ballot by a clear majority of trade union members.

Fagerholm's relation to the aged Finnish president
President of Finland
The President of the Republic of Finland is the nation's head of state. Under the Finnish constitution, executive power is vested in the President and the government, with the President possessing extensive powers. The President is elected directly by the people of Finland for a term of six years....

 Paasikivi remained controversial, although the release of the latter's diary has thrown some light on the issue. Supporters of Fagerholm argue that Fagerholm's line in foreign politics was considerably closer to that of Paasikivi, although Fagerholm in many aspects was ideologically remote from the Conservative fennoman
Fennoman
The Fennomans were the most important political movement in the 19th century Grand Principality of Finland. They succeeded the fennophile interests of the 18th and early 19th century.-History:...

 Paasikivi. Supporters of Kekkonen argue that Fagerholm's contact with the U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 embassy, and pecuniary support from the US, could not have been approved by Paasikivi. Although Paasikivi considered both contenders for the position as Prime Minister as skilful and politically capable, he did in fact come down more often in favor of Kekkonen, who enjoyed the support of the Soviet leadership.

In the presidential elections of 1956
Finnish presidential election, 1956
Two-stage presidential elections were held in Finland in 1956. On 16 and 17 January the public elected presidential electors to an electoral college. They in turn elected the President. The result was a victory for Urho Kekkonen, who won in the third round of voting. Voter turnout in the public...

 Fagerholm got one elector's vote less than needed to be elected (149 votes), and Urho Kekkonen was elected (151). Fagerholm did instead succeed Kekkonen as Prime Minister for a four-party coalition cabinet.

Third term as Finnish PM

During his second term as Prime Minister, in 1956–57, he visited the Soviet Union, and relations appeared to have improved. After a period out of office, the general elections of July 1958 again brought a Fagerholm-led coalition cabinet to office. Their chief opponents were the Communists, who had become the largest party in Parliament. Kekkonen in this situation did nothing to mitigate a Kremlin fear that Finland would abandon the careful course steered by Paasikivi and Kekkonen since the late 1940s that sought to ensure that Finland would do nothing that conflicted with the interests of the USSR. Finnish membership in the Nordic Council
Nordic Council
The Nordic Council is a geo-political, inter-parliamentary forum for co-operation between the Nordic countries. It was established following World War II and its first concrete result was the introduction in 1952 of a common labour market and free movement across borders without passports for the...

 in 1955 and a progressive increase in trade with the West
Western world
The Western world, also known as the West and the Occident , is a term referring to the countries of Western Europe , the countries of the Americas, as well all countries of Northern and Central Europe, Australia and New Zealand...

 was seen in Moscow as a harbinger of the "loss" of Finland to the West, particularly under a politician like Fagerholm known for Nordic sympathies and US connections. As a consequence, over the autumn of 1958, the Soviet government pursued an escalating policy of economic and other sanctions against the Fagerholm government, canceling discussions on a range of economic issues and trying to leave little doubt in the minds of Finns that having Fagerholm as prime minister would be exceedingly costly. Finally, the Soviet ambassador was recalled. The pressure worked: on 4 December 1958, Fagerholm filed his resignation. In January 1959, after Kekkonen had traveled to Leningrad to personally assure Nikita Khrushchev
Nikita Khrushchev
Nikita Sergeyevich Khrushchev led the Soviet Union during part of the Cold War. He served as First Secretary of the Communist Party of the Soviet Union from 1953 to 1964, and as Chairman of the Council of Ministers, or Premier, from 1958 to 1964...

 that Finland would be a "good neighbor" and a Prime Minister from Kekkonen's Agrarian
Agrarianism
Agrarianism has two common meanings. The first meaning refers to a social philosophy or political philosophy which values rural society as superior to urban society, the independent farmer as superior to the paid worker, and sees farming as a way of life that can shape the ideal social values...

 Center Party was appointed, all economic intercourse resumed.
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