Will Finland Leave The Euro

A blog about business and economics.
July 13 2012 8:16 AM

Finnish Coalition Strained Over Bailout Collateral Issue

Jan Vapaavuori of the National Coalition Party
Jan Vapaavuori of the National Coalition Party

Photograph by Seppo Samuli/AFP/Getty Images.

Here's another one for the "Fixit" files, as Finland's ideologically diverse pro-euro coalition seems to be straining over Finland's previous demand that any country receiving loans from the European Union post collateral. When applied to Greece, this Finnish demand was a minor annoyance, but Jan Vapaavuori—the parliamentary leader of the center-right National Coalition Party, which leads the Finnish government—is correctly noting that as applied to Spain this has become a major hangup that doesn't really accomplish anything.

But Vapaavuori's opposite number in the Social Democratic Party—traditionally the NCP's ideological adversaries, but their key partner in the coalition—says he's not open to any changes. It was the Social Democrats' party leader, Jutta Urplainen, who launched the last round of Fixit speculation by saying that though Finland wants the eurozone to succeed it will not "hang itself to the euro at any cost."


The most politically likely Fixit scenario I can envision is the Social Democrats using some new development as a pretext to bust up the coalition with the NCP and try to form a new government they would lead that would include the euroskeptical Center Party.

In economic terms, the case for Fixit is two-fold. On the one hand, Finland has all of Germany's concerns about cosigning loans to "irresponsible" southern European countries except without Germany's sense of historic mission or Germany's practical control over eurozone economic policy. On the other hand, for a eurozone member, Finland does relatively little trade with the rest of the eurozone as neither Sweden nor Russia use the euro.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.


Frame Game

Hard Knocks

I was hit by a teacher in an East Texas public school. It taught me nothing.

Republicans Like Scott Walker Are Building Campaigns Around Problems That Don’t Exist

How Can We Investigate Potential Dangers of Fracking Without Being Alarmist?

The Best Way to Organize Your Fridge

If You’re Outraged by the NFL, Follow This Satirical Blowhard on Twitter


Hidden Messages in Corporate Logos

Subtle cues from FedEx, Amazon, and others.

Sports Nut

Giving Up on Goodell

How the NFL lost the trust of its most loyal reporters.

Chief Justice John Roberts Says $1,000 Can’t Buy Influence in Congress. Looks Like He’s Wrong.

A No-Brainer Approach to Fighting Poverty: Better Birth Control

  News & Politics
The World
Sept. 16 2014 11:56 AM Iran and the U.S. Are Allies Against ISIS but Aren’t Ready to Admit It Yet
Sept. 16 2014 12:22 PM Poverty Rates Falls for First Time Since 2006, Remains Way Too High
The Eye
Sept. 16 2014 12:20 PM These Outdoor Cat Shelters Have More Style Than the Average Home
  Double X
The XX Factor
Sept. 15 2014 3:31 PM My Year As an Abortion Doula
  Slate Plus
Tv Club
Sept. 15 2014 11:38 AM The Slate Doctor Who Podcast: Episode 4  A spoiler-filled discussion of "Listen."
Sept. 16 2014 12:05 PM Slim Pickings at the Network TV Bazaar Three talented actresses in three terrible shows.
Future Tense
Sept. 16 2014 12:01 PM More Than 3 Million Told the FCC What They Think About Net Neutrality. Why Hasn't Obama?
  Health & Science
Bad Astronomy
Sept. 16 2014 7:30 AM A Galaxy of Tatooines
Sports Nut
Sept. 15 2014 9:05 PM Giving Up on Goodell How the NFL lost the trust of its most loyal reporters.