EU Euro Bailout Finnish Politics

THE ECONOMIST SAYS FINNS MORE LIKELY TO LEAVE EURO THAN THE GREEKS…….

 

It’s called self preservation……

The prestigious international affairs weekly The Economist writes that Finland has the least to gain from a key European Union proposal to help save the euro and curb the ongoing sovereign debt crisis – pooling government debt.

The article pointed out that the International Monetary Fund has estimated that the combined gross debt of euro zone countries would reach a staggering 91 percent of GDP, compared to Finland’s current government debt of just 53 percent of GDP — one of the lowest in the regional grouping.

The magazine noted that with Finnish banks relatively under-exposed to the debt-ridden euro members in the south, the country’s growing susceptibility to “bailout fatigue” and the fact that its economy is less integrated into the euro area than other members, some observers think that Finland might be more likely to exit the euro than Greece.

It noted however that Finns are still largely in favour of keeping the euro.

More here.

2 Responses

  1. What is more likely in this saga, is that there will be closer integration of the core Euro group . Only those who are fiscally sound will be allowed in – Germany, Netherlands, France, Luxembourg, Finland. The rest will automatically be outside.

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