The Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.
Irritation about the euro is beginning to question if the only Scandinavian country using the currency, Finland will soon leaveThursday, 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
What do you think about this article and us? Please leave a comment
© Scandinavian Companies and Market Magazine 2012. | Scandinavian Companies and Market and Scancomark are registered trade mark of Scandinavian Companies and Market.