Contrary to recent speculation against the backdrop of the eurozone crisis, Finland has no plans to exit the euro. Finnish minister for European affairs and foreign trade Alexander Stubb describes it as ‘loose talk’ and says those who talk of the so-called Fixit should ‘fix their facts first’.
The remarks come amid concern over the country’s finance minister Jutta Urpilainen’s statement that Finland “will not hang itself to the euro at any cost and we are prepared for all scenarios” and after reports that Helsinki has made contingency plans for the breakup of the euro.
Mr Stubb says that it is a misconception to compare the present crisis to that in early 2000, it should rather be compared to that of the early ’90s, or even the Great Depression of the 1930s.
Some even wrongly think that it is because of the emergence of the ‘others’,
he says. The minister says more legislation on controlling public spending in
member states; rescue packages for Ireland, Portugal and Greece as well as recapitalisation of Spanish banks; and the EU fiscal pact are steps that have already been taken to deal with the crisis.
Apart from this, there are shortterm measures like necessary reforms Greece needs to implement to get the next piece of loan, Spain needs to continue the reforms they have already started, and we are trying to help to find a way to drive down interest rates in Italy.
The mid-term perspective, he says, is to get the banking union right, and more legislation to ensure this doesn’t happen again. Despite all this, he expects that there will be modest growth for the coming years.