PM: Finland needs to be part of ESM

Split between two largest government parties on issue

Jyrki Katainen

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A clear difference of opinion has emerged between the two main government parties, the National Coalition Party and the Social Democratic Party, on the conditions under which Finland would be involved in the European Stability Mechanism (ESM), which is to be implemented in the upcoming summer.
      Prime Minister Jyrki Katainen (Nat. Coalition Party) said on Sunday in the regular Prime Minister’s radio interview programme that all euro countries, including Finland, need to be in the ESM.
      “It is clear as day. It is very important that each euro country bears responsibility. We are looking for a solution that would make it possible for us to take part”, Katainen said.
     
The view in the Social Democratic Party is that Finland can easily opt out of the ESM if the consensus principle is rejected in decision-making in the crisis fund, in favour of qualified majority voting, as Thursday’s summit endorsed.
      SDP chairwoman, Minister of Finance Jutta Urpilainen, said on Friday that decisions in the ESM will have to be made by consensus if Finland is to take part in it.
     
Minister for Foreign Affairs Erkki Tuomioja (SDP) said that he sees no reason why Finland should approve qualified majority decision making in the ESM.
      “The decision must arise from the basis that decision-making by consensus is restored to the ESM”, Tuomioja said. As such, I feel that it is desirable for all countries to be in the ESM, but then we need to return to consensus.”
     
Finland has previously been in favour of increasing qualified majority decision-making in the EU. Tuomioja wrote in his blog on Sunday that the matter at hand is something different. The ESM is a financial mechanism outside the EU basic treaty, in which countries responsible for 85 per cent of its capital could compel others to take part in the financing of billions of euros in loans. Germany, France, and Italy would retain a veto in the ESM.
      Katainen said that the government is looking for a solution, “peacefully and with a cool head”, which can be acceptable from Finland’s point of view, which is in accordance with the constitution, and which allows Finnish participation in the ESM.
      On Tuesday Katainen will brief the Grand Committee on decisions made at the summit. On the same day the government will respond to an interpellation put forward by the True Finns. On Sunday, True Finns chairman Timo Soini said that Finland should stay outside of the ESM.
     


Previously in HS International Edition:
  What will happen to the euro? (2.12.2011)
  Finland sticks to consensus demand at euro summit (9.12.2011)

See also:
  EU summit: Finland’s concerns remain unanswered (12.12.2011)

Links:
  European Stability Mechanism (Wikipedia)

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