Eurozone membership has benefited companies in Finland

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Finnish businesses have benefited from eurozone membership, writes Professor of Finance Timo Korkeamäki from the Swedish-speaking Hanken School of Economics, in a briefing paper entitled The corporate benefits of the euro: Finnish companies cannot live without a common currency, published by the Finnish Institute of International Affairs.
      In Korkeamäki’s view “companies from countries with small and unstable legacy currencies, such as Finland, have benefited comparably more from the widened financial markets”.
     
Owing to the lowered cost of debt, the aggregate after-tax cost savings of Finnish companies have been measured in the hundreds of millions of euros per year.
      “Reductions in the cost of financing should increase companies’ ability to invest, and thus these savings are likely to have multiplicative effects on the economy for years to come”, Korkeamäki writes.
     
The Finnish Institute of International Affairs is a research institute established by the Parliament of Finland in 2006, and Parliament also provides the Institute’s basic funding.
      The Institute is autonomous in its research activities and is governed by a nine-member board, assisted by an advisory council and a scientific advisory council.


Links:
  The Finnish Institute of International Affairs briefing paper: The corporate benefits of the euro: Finnish companies cannot live without a common currency

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