Parliament passes loan to Greece after acrimonious debate

Katainen accuses Social Democrats of lying about banks’ role in support package

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Parliament held an exceptionally intense debate on Wednesday on the Finnish response to the economic crisis in Greece. The government launched an unusually ferocious attack on the main opposition group, the Social Democratic Party.
      Minister of Finance Jyrki Katainen (Nat. Coalition Party) insinuated that SDP chairwoman Jutta Urpilainen, the party’s Parliamentary group leader Eero Heinäluoma, and the entire SDP Parliamentary group had been lying in front of the Finnish people.
     
The loan to Greece was passed after 12 hours of debate by a vote of 108-63. There were two abstentions and 26 MPs were not present during the vote. The entire opposition voted against the measure.
      On Tuesday the SDP group discussed the possibility of abstaining in the vote. Ten MPs called for such a move, but the group decided against it, and party discipline prevailed in the final vote.
      The core of the dispute was the SDP’s claim that banks in Germany and France had offered to take part in the support package, while banks in Finland had not. Katainen vigorously contradicted the view.
     
Katainen sharply rejected all of the SDP’s demands. He said that the opposition was demanding the renegotiation of the agreement, and a new parliamentary round in the euro countries. “Such a demand makes no sense.”
      During Katainen’s outburst, Heinäluoma and Urpilainen sat in silence. Only Jukka Gustafsson (SDP), sat in the front line, waving a sheet of paper and shouting that he had proof, in the form of a Finnish translation of an article in the German newspaper Hannoversche Allgemeine.
     
Katainen got up before Gustafsson, holding a paper in his own hand. “I have an agreement by the German banks. We will distribute this to everyone. All will be able to see who is speaking the truth and who is not”, he said, almost shouting.
      According to Katainen, banks in Germany had “theatrically” promised to lend money to the German state, so that the state might take part in helping Greece. “German bonds are among the most desired acquisitions by banks in these times, so the so-called commitment is a good deal for banks”, he said.
     
When there was a lull in the battle, the Social Democratic Party group leaders gathered at a table at the far end of the Parliament’s café to discuss the aftermath of the exceptionally intense attack.
      Urpilainen noted upon rising from the table that “emotion went ahead of consideration”, noting that Katainen had been unusually aggressive.
     
According to SDP assessments, Katainen’s tactics may have been dangerous. “When has a government party ever benefited from lashing out at the opposition?” Heinäluoma asked. He said that he hoped for more such attacks and said that the government is simply frightened of the next phase of the Greek crisis.
      Urpilainen backed up her view that Katainen had been aggressive by citing as an example Katainen’s announcement that he had sent a message to French Minister of Finance Christine Lagarde. Katainen had told her of the claim by the Finnish opposition that French banks were supporting Greece. “A message came from her, according to which this was not true”, Katainen said.
     
The SDP focused on demanding more regulation, supervision, renewal of the finance system, a bank tax according to the Swedish model, and a global tax on financial markets.
      “How long will banks be allowed to collect profits and have taxpayers pay for the losses?" Urpilainen asked.
     
MP Erkki Tuomioja, who spoke on behalf of the Social Democrats, emphasised that the support package for Greece was necessary.
      “However, it cannot be that the single decision that was reached in the crisis meeting would be the only right and functional alternative.”
      Government party MPs asked Tuomioja what the Social Democrats’ alternative would be, considering that they do not approve of the support package for Greece. Katainen said that failing to pass the European aid package would put Greece into receivership. “Tell us openly what kind of a place Europe would be after that. Tell us quite openly”, demanded an agitated Finance Minister Katainen.


Previously in HS International Edition:
  Parliament argues over giant loan to Greece (5.5.2010)
  Finnish government sees no alternative to Greek aid package (4.5.2010)
  Government parties lash out at SDP for opposing Greek loan package (12.5.2010)
  Ministers pleased with EU stability package (11.10.2010)

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