Finland balking at EU bailout $$$

Discussion in 'Europe' started by Trajan, May 1, 2011.

  1. Trajan

    Trajan conscientia mille testes Staff Member

    Jun 17, 2010
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    The Bay Area Soviet
    apparently they are not feeling the love. They have had to guarantee 16 Billion Euros when the inital request was for 7 B EU, having thought ot thru they like say Germany are asking themselves, why should they?

    A Finn Man Trying to Get Out
    The EU’s bailouts spark an uprising.
    Apr 18, 2011

    If you believe the members of the fastest growing political party in Finland, their country is the sucker, the sap, the patsy among the Nordic nations. Norway never joined the European Union. Sweden and Denmark opted out of using its currency, the euro. Finland, however, is a full member in every respect, and as such has seen its AAA-rated bonds used to guarantee the bailouts of profligate elites in Greece, Ireland, and Portugal.

    Elections scheduled for April 17 in Finland have put the eurozone rescue plan (as they call it in Greek) or bailout (as they call it in German) on a collision course with a populist uprising. “It is not possible to pull out by ourselves,” says Timo Soini, the man who is leading that uprising. “But it was a mistake to join.” In the not inconceivable event that Soini becomes prime minister, Europe’s mechanism for paying off government creditors is going to get much trickier.

    The European Council made a big accounting mistake last May. With the help of the IMF, it set up the European Financial Stability Facility (EFSF), a 750-billion-euro fund to tide over Greece and any other member states that ran into financial trouble. The EFSF was supposed to be a safe, triple-A fund with a big cushion of equity. This meant that it could not lend all its money—only about 440 billion euros of it. But there are just six triple-A countries in the EU, including Finland. (The others are Germany, France, the Netherlands, Austria, and Luxembourg.) The equity that member states put up was more wobbly than assumed. The fund’s real bailout power was only half of what Europeans claimed it was. So a month ago, at a meeting in Brussels, the European Council told member states that they would have to roughly double their contributions.

    That is where Finland comes in. Key EU votes require unanimity, and Finns are not happy being told that they need to guarantee 16 billion euros of a dangerous bailout fund rather than the 7.9 billion they were first asked for. Already Europe’s self-styled financial rescuers find themselves warming their hands over the pressure-cooker that is the German electorate. German voters, who are paying more than a quarter of the tab for the bailouts, are convinced that all the money they’ve saved by cutting and scrimping over the past decade is now being commandeered to pay off the debts of a bunch of Mediterranean freeloaders. An increasing number of Finns feel the same way, although their tiny country covers only 2 percent of the bailouts. In Finland as in Germany, there is suspicion that the EU is turning into a “transfer union,” i.e., an arrangement by which high-earning countries transfer income and resources to low-earning ones.

    continues at-

    A Finn Man Trying to Get Out | The Weekly Standard
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  2. Mad Scientist

    Mad Scientist Deplorable Gold Supporting Member Supporting Member

    Sep 15, 2008
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    The Finns AND the Germans don't look like they wanna' go along with massive bailouts now. But that's ok, we'll do our version of the EU (The North American Union) much better than they can.


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