Finland Prepares For Eurozone Break-Up

Aug. 17 (EIRNS)–Finland is preparing for the break-up of the
Eurozone, according to statements by Foreign Minister Erkki
Tuomioja, whose Social Democratic Party is part of the six-party
ruling coalition government. “We have to face openly the
possibility of a euro break-up,” Tuomioja told Britain’s {Daily
Telegraph} columnist Ambrose Evans-Pritchard. “It is not
something that anybody–even the [euro-skeptic party] True
Finns–are advocating in Finland, let alone the government. But
we have to be prepared. Our officials, like everybody else and
like every general staff, have some sort of operational plan for
any eventuality.”
During the interview, City of London mouthpiece
Evans-Pritchard noticed a copy of the {Economist} on the Foreign
Minister’s desk, with a cover photo of German Chancellor Angela
Merkel reading a fictitious report entitled “How To Break Up The
Euro,” and the headline: “Tempted, Angela?”
“This is what people are thinking about everywhere,” said
Tuomioja. “But there is a consensus that a Eurozone break-up
would cost more in the short run or medium run than managing the
crisis. But let me add that the break-up of the euro does not
mean the end of the European Union. It could make the EU function
better,” he said.
Evans-Pritchard then quotes the True Finns leader Timo
Soini: “Taxpayers here are extremely angry. There are no rules on
how to leave the euro, but it is only a matter of time. Either
the south or the north will break away, because this currency
straitjacket is causing misery for millions and destroying
Europe’s future. It is a total catastrophe. We are going to run
out of money the way we are going. But nobody in Europe wants to
be first to get out of the euro and take all the blame,” he told
the Finnish Parliament.
Tuomioja said that Greece cannot be kicked out the Eurozone,
but they could be cut off from further bailout funds, and then it
would be up to the Greeks whether or not to leave. “Then we could
speculate whether that would entail getting out of the euro.
Nobody knows if it could be contained.” Tuomioja said Finland
would block attempts to strip the European Stability Mechanism
fund of its senior creditor status, “The ESM loans have priority.
That is a red line for us. We are very concerned that the rules
of the ESM seem to be changing.”
Evans-Pritchard writes that Tuomioja “voiced deep suspicion”
of the “gang of four” EU insiders, especially European Central
Bank President Mario Draghi, for trying to create a fiscal union.
“I don’t trust these people,” he said.
The warnings on the ESM were echoed by Miapetra
Kumpula-Natri, chairman of the Finnish Parliament’s Grand
Committee on Europe, who said: “Our law passed this summer says
the ESM has the same priority as the IM…. Any change would
require a new law passed by the whole Parliament, and this would
be very difficult because the risks would be much higher.”
Kumpula-Natri said Finland can be pushed only so far. “There is a
feeling on the street that there has to be a limit. I can’t say
whether it is 10% of GDP, or what. It’s not written. But it is
obvious that a small country can’t help big countries eternally.”

This entry was posted in Austerity & Bank Bailouts and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s