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The forms of global political transition contradict each other. The Western leadership of the world seems to be in decline, with the US political and military hegemony being challenged by the rise of China and other emerging powers and with global power structures evolving towards multipolarity. At the same time, however, there are increasing signs of a diffusion of state power. It involves a growing group of non-state actors challenging state power in very different forms and different capacities. This report focuses on the axis of state power considered the most important in terms of its global implications: the relationship between the US and China. This relationship is studied with the aim of assessing how the mutual interdependencies are evolving, and what the goals of the two actors look like in respect of their own global role. The implications of this power transition in the key fields of global governance – also covering the simultaneous diffusion of power to non-state actors – forms another relevant topic under review in the global context. Lastly, the report analyses how the EU contends with these forms of power transition and safeguards its own influence in this changing environment. The project also addresses the international role and influence of one of the northernmost EU members, Finland. It investigates how the changes in the global and regional setting should be understood from the Finnish point of view and how Finland should act in order to consolidate its international role in economic as well as political terms. ; -- Introduction -- The changing international system -- The EU in the context of the changing global order -- The changing international system: implications for Finland

Nordic states' partnership choices in security and defence are more aligned than they were a decade ago. When Danish, Finnish, Norwegian and Swedish government officials now identify key security challenges and partners, and reflect on the potential for Nordic cooperation, they have the same reference points and use similar wording. Since 2014, the toolbox for Nordic defence cooperation has also solidified and different formal affiliations with NATO and the EU seem to matter less than before. Furthermore, an array of multi- and minilateral cooperation structures have emerged across and beyond the EU and NATO, expanding the possibilities for Nordic cooperation under a larger Euro-Atlantic umbrella. However, two limitations remain: First, Nordic security and defence cooperation still remains subordinate to and a supplement rather than an alternative to NATO. Second, putting Nordic response mechanisms into practice remains dependent not only on the context and issue at stake, but also on the political appetite of the individual Nordic governments to choose a Nordic solution. ; publishedVersion