Greek bailout sparks criticism in Finland

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The International Monetary Fund and countries of the euro zone have agreed on a bailout package for Greece, which is in a serious financial crisis. Greece is to get loans of up to EUR 110 billion over the coming three years.
      Finland’s share of the package is 1.85 per cent of the EUR 80 billion taken on by the euro zone. Finland will lend Greece up to EUR 1.48 billion over the next three years.
      In return, Greece has promised to enact severe austerity measures, including tax hikes and spending cuts, worth a total of about EUR 30 billion. The aim is to push the country’s deficit to below three per cent of GDP by 2014.
     
The European Commissioner for Economic and Monetary Affairs, Olli Rehn, said in Brussels on Sunday that the implementation of the conditions of the bailout would be checked at regular intervals - the first follow-up is to take place already before the summer holidays.
      Finnish Minister of Finance Jyrki Katainen (Nat. Coalition Party), who represented Finland at the Brussels meeting on Sunday, said that the Finnish government will present a proposal for additional funding to Parliament on Monday. He is convinced that Parliament will approve the loan being offered to Greece.
      “I believe that it will be passed, but we need to leave it up to the free discretion of the Members of Parliament”, Katainen said on Sunday.
     
Katainen reiterated that he would not recommend approval of the loan unless the alternative would be even worse from Finland’s point of view.
      He emphasised that Finns will not have to give up anything because of the Greek bailout.
     
The package has come under criticism from Finnish opposition politicians. Left Alliance chairman, MP Paavo Arhinmäki said that the passage of the package in Parliament is no foregone conclusion. He noted that previous governments in Greece have methodically deceived others, and a full accounting is needed before further support can even be considered.
      True Finns leader, MEP Timo Soini said that his party does not approve of the Greek support package in the Finnish Parliament or at the European level. He feels that Greece should be expelled from the euro zone, and the future drachma should be devalued by 30-40 per cent, and the EU itself should be dispersed and downgraded to an economic and free trade union.
     
Social Democratic Party Parliamentary group leader Eero Heinäluoma promised Finance Minister Katainen and Prime Minister Matti Vanhanen (Centre) that there would be an angry reception in Parliament for the Greek bailout package.
      In his blog, Heinäluoma wrote that while stabilising the situation in Greece is in the interests of all Europeans, those helping Greece must not be naive about it, and the help cannot happen at any price.


Previously in HS International Edition:
  Finland wants Greece to pay adequate interest on any emergency loans (26.3.2010)
  Rehn: Eurozone countries must decide on Greece aid this week (24.3.2010)
  Some Euro countries willing to let Greece take IMF money (17.3.2010)

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