Lipponen, Paavo Tapio (1941– )

Finnish politician, prime minister 1995–2003. Paavo Lipponen was appointed leader of the Social Democratic Party (SDP) in 1993 and formed his first ‘rainbow coalition’ in 1995. The second government headed by Lipponen in 1999 was also nicknamed ‘the rainbow’, because it contained the same broad range of political parties as the first. The SDP lost a considerable amount of ground in the 1999 general election, but retained its position as the biggest in parliament. Despite fears that traditional political opponents would fail to govern together effectively, Lipponen and Sauli Niinistö, the National Coalition Party chair and finance minister, formed a powerful duo that successfully led Finland from 1995.

Lipponen has been praised for the consistency of his government's policies, and even its severest critics acknowledged that the country's economic prospects were clear and stable, thanks to Lipponen's economic policy. He showed a strong belief in the principles and goals of the European Union (EU), and championed monetary union as a factor to increase stability, believing that the euro would gain strength in relation to the US Dollar.

Lipponen worked as a freelance journalist 1963–67 before becoming involved in politics. He joined the SDP and worked as the party's research and international affairs secretary and planning chief of the political section 1967–79. He then became special political advisor to the prime minister 1979–82. He was managing director of Viestintä Teema Oy 1988–95 and served as head of the Finnish Institute of International Affairs 1989–91. A MP 1983–87 and from 1991 onwards, he was also a member of Helsinki City Council 1985–94.