Finland Preparing for Possibility of Euro Breakup

Finland’s foreign minister has openly admitted that the Nordic state is preparing for the possibility of a eurozone breakup.

In an interview with the Telegraph, Erkki Tuomioja, Finland’s veteran foreign minister said that Finnish officials have been preparing for the breakup of the single currency with an “operational plan for any eventuality.”

He said:

Finland’s foreign minister has openly admitted that the Nordic state is preparing for the possibility of a eurozone breakup.

In an interview with the Telegraph, Erkki Tuomioja, Finland’s veteran foreign minister said that Finnish officials have been preparing for the breakup of the single currency with an “operational plan for any eventuality.”

He said:

[quote] It is not something that anybody — even the True Finns [eurosceptic party] — is advocating in Finland, let alone the government. But we have to be prepared. [/quote]

“This is what people are thinking about everywhere. But there is a consensus that a eurozone break-up would cost more in the short-run or medium-run than managing the crisis,” he added.

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The article also quoted Timo Soini, head of the Finns Party who said Finnish taxpayers were not happy subsidizing the cost of fiscal irresponsibility by errant states.

Soini said:

[quote] 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 straightjacket is causing misery for millions and destroying Europe’s future. [/quote]

“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 said.

However, Tuomioja insisted that “the breakup of the euro does not mean the end of the European Union.” Instead, he said “it could make the EU function better” as a political union.

Finland has since emerged as one of the tougher creditor nations, insisting on collateral from both Greece and Spain in exchange for bailout loans. Like other member states, Finland has veto power that could be used to block future bailout measures.

The issue of euro breakup may come to head as early as October when the so-called Troika publishes its report card on Greek bailout compliance.

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