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Finland may become the first to elope from the troubled Euro single currency project

Tuesday, 18 October 2011
Finns and not the Greeks are poised to be the first to leaves the Euro single currency in the nearest future. Such feeling can be felt when one observe the way the Finns argue in relations to their support for the debt relief to trouble European countries.

Even various Swedish presses have started looking and assessing what various organisations, international organisations are assessing the situation for example the Swedish business daily, Dagens Industri became curious about a recent report from a British analysis organisation and Bloomberg news agency.

Speculation is rife that the economic damage Greece has ushered into the Eurozone, as well as other impending crisis waiting to happen with a large Euro countries, it that made it that the Finnish economy has lost some of its vibrant competitiveness as a result of its tie with the Euro.

This rumble of Finland is also supported by views that even mighty Germany, could leave the euro. But it is also argued that the big of the 17 euro countries would hardly throw in their towel first.  Only a smaller country, with good a economy, such as Finland could lead the way to the recoil.

Therefore, the most obvious candidate to this realism is more leaning towards Finland. Besides the fact that Finnish people have been very vocal in their disapproval in the way the Euro is stagnating the Europe zone economy, others from the outside the zone such as the British economic analysis organisation, Strategy Economics have published a report that shows that Finland is likely on its way out.

In an 8 page analysis led by Matthew Lynn, and economic commentators on Bloomberg and BBC, as well as other authors, their discussion was centred on the fall out of the effect Finnish withdrawal.

Strategy economics reasoning is basically quite simple - the Finns do not need and could benefit from leaving the monetary union. From the output stand and economic standpoint, it could be for the best - the Finns have a large current account surpluses, healthy public finances and strong economy.

Of all the numerical data which the analysis house examined, Finnish’s current account balance stood as important. One obstacle that makes it difficult for Greece to leave the euro is that it has its debt in euros. It would explode if it withdrew to its old currency.

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But an even worse headache for the Greeks is that they are stuck with large trade deficit and that the Greeks have borrowed from other countries to make up for it. A country that has a surplus in its current account, such as Finland, is therefore much stronger.

Finland has thus the economic strength to get out of the Euro. Matthew Lynn points out three benefits of a return to the Finnish mark:

Finland would be in a battle to become a much richer country because the new Mark would rise sharply in value against the euro. The mark was in the 1990s, at times one of the world's strongest currencies.

The mark would make that import prices would fall and the value of Finnish investments abroad would increase. The Finnish forest industry could get a hit. But overall, the Finnish economy benefit.

The country would not take part in the costly bailout. Finland is one of the few countries in the euro zone with a triple A credit rating. This makes it likely that the Finns may account for a greater portion of the bill.

As the News Danish Prime Minister is Helle Thorning-Schmidt, made her first official visit to Finland on Monday afternoon was met her Finnish opposite number, Jyrki Katainen and the Euro Crisis was one of their core point of discussion. 

Speaking to reporters afterwards, neither was very hopeful that any major steps forward would be made at this weekend's summit conference.

The meeting of euro zone heads of state or government begins in Brussels on Saturday, October 23. Financial markets and the euro both rallied on Monday on optimism that EU leaders were set to hammer out a final deal to rescue debt-laden Greece from bankruptcy. In Finland the feeling towards all that has just been too week.
By Scancomark.se Team



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    To break down voter support from Sifo, below is the voter’s perception for October with the change from September in parentheses.

    Moderates 31.1 percent (- 1.6),
    Liberal Party 6.8 percent (+1.0)
    Center Party 4.9 percent (+0.4),
    Christian Democrats 3.8 percent (- 0.3)
    The Social Democrats 30.3 percent (- 1.5)
    Left Party 6.3 percent (+0.9),
    Green Party 10.1 percent (+1.2)
    Sweden Democrats 5.5 percent (+ / - 0)

    1925 voters were interviewed on October 3 to 13.
    Several newspapers have published this  Sifo voter barometer.