Sauli Niinisto has been inaugurated as Finnish president, succeeding Tarja Halonen who held the post for 12 years.

The 63-year-old former finance minister and leader of the conservative National Coalition Party, won a run-off February 5 against the Green Party's Pekka Haavisto.

A guard of honor was deployed outside parliament in Helsinki where the inauguration took place. Former presidents Mauno Koivisto and Martti Ahtisaari were among the dignitaries present, DPA reported.

The Finnish head of state has a largely ceremonial role, but also has a strong voice in foreign policy. The president can also help form public opinion.

In his remarks, Niinisto said he hoped Finland would develop its ties with China and other emerging economies and would remain an active member of the European Union. He also planned to call together experts to discuss proposals to tackle youth unemployment.

After the ceremony, Niinisto and Halonen returned to the presidential palace where they - flanked by their spouses - waved from a balcony before meeting the diplomatic corps.

Halonen, who became Finland's first female president in 2000 and was re-elected in 2006 when she defeated Niinisto in a run-off, was not allowed to stand for a third term.

The 68-year-old has said she plans to take part in public debate and work on international issues. She was considering an offer to chair a United Nations working group on population and development issues.

The election of Niinisto marked a political change in Finland as it was the first time in 30 years that a candidate not endorsed by the Social Democrats was elected head of state.