Sharp criticism to Finnish collateral demand agreement
Tuesday, 04 October 2011
As Finland tried to be cautious in its European Financial engagement by demanding for protection and collateral, the moves has come under intense criticism in Finland.
One of the staunch critics to the Finnish government’s action is Professor Vesa Puttonen from the Aalto University. He point out that the economic benefits of the collateral Finland has been granted in relation to supporting the loans to Greece are questionable and that the agreement in itself is very complicated.
Puttonen say it is difficult to predict how the economic situation will look like in 15 to 20 years and what impact today's decision will have then.
Most importantly, according to Puttonen, it is worrying as to how the collateral servcurity is agreed upon. The collateral gives the Treasury minister, Jutta Urpilainen a chance to save face and show that she is on the side of the Finns said Puttonen in an interview on Finnish news broadcaster Yle.
The agreement also becomes more expensive for Finland than for other countries as Finland, had promised to pay the whole sum at once.
Other criticisms have come from political parties such as Mauri Pekkarinen of the centre party who criticizes the tenet of the collateral agreement.
“They have only a formal value and no real significance” he said to Yle.
He continues to say that the fact that the other euro countries did not want to use the same opportunity means that there was no value in it. Finland has long known that the other euro countries don’t think any country should have special rights. Yet they agreed that Finland's security needs are met.