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Irritation about the euro
is beginning to question if the only Scandinavian country using the
currency, Finland will soon leave
Thursday, 14 June 2012
The irritation within the euro zone is making observers to feel that
Finland is most likely country to lead the matching order out of the
euro zone. Among other, the Wall Street Journal’s MarketWatch is
feeling more that the only Nordic country to adopt the currency could
be on it way out.
However there were no indications in Helsinki that it share this
feeling though many months ago, there were talks in Finland about that
the Finland could elope from the Euro monetary project. The Euro and
the various bail outs of the less competitive southern Euro – countries
are one of the reason why the Finnish far right party, True Finns
emerged as a leading force in the country’s political life. The part
advocates for Finland’s withdrawal from the Euro and that gained
massive support from the country’s voting population.
Various columnists such as author Matthew Lynn, head of the
London-based Strategy Economics consultancy, argue that Finland has the
most to gain by exiting the single currency.
In
a column published on Wednesday, Lynn notes that as Finland is “a small
nation with a strong economy” is would be easy for it to head for the
door.
“Finland would be better off on the first day,” he notes, adding that
“it doesn’t particularly have to worry about the impact on the European
Union, in the way that Germany would if it opted out.”
A Finnish departure, he predicts, would then prompt others to abandon the currency, thus defusing the euro crisis.
In Helsinki, there was no sign of moves in this direction although the
opposition Finns Party lambasted the government over its euro policies
in debate ahead of a vote of confidence on Thursday.
Prime Minister Jyrki Katainen and Finance Minister Jutta Urpilainen
struck back forcefully against criticism from the Finns Party, asking
its MPs to spell out a credible alternative to supporting Spain.
Meanwhile the legislature’s Finance Committee recommended that
Parliament approve the European Stability Mechanism (ESM), which is to
begin operations in early July. Finland and 16 other countries signed
the treaty setting up the institution in February.
Finland’s share of the mechanism’s capital is nearly 12.6 billion
euros. So far Finland has paid just over 1.4 billion into the fund, and
promised to pay the remainder on demand.
Committee members from the opposition Finns and Centre parties voted
against the decision and submitted their own dissenting opinion.
By Scancomarks.se Team additional in put from Yle, Finland
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