Finland Rejects Talk of Euro Exit After Backing Spain Rescue

Finnish Prime Minister Jyrki Katainen dismissed speculation his government is considering dropping the euro should the debt crisis deepen after the Nordic nation’s parliament agreed to back a Spanish bank bailout.

“We will not and do not consider exiting the euro,” the premier said today in an interview in Helsinki. “We want to be at the heart of European development. A stronger euro, a better euro is the only, and reasonable, thing for Finland.”

Finland’s demand that bailouts come with strict terms such as austerity and burden sharing, coupled with Katainen’s rejection of common bonds, has prompted economists including Nouriel Roubini to suggest the nation may ultimately quit the euro in protest.
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Finland, which saw the anti-bailout party the “The Finns” become the third-biggest in elections in 2011, also demanded collateral to back a second bailout for Greece last year. It was not an easy decision to back Spain, Katainen said.

“It was a necessary decision to take, even though it’s very hard,” he said. “It’s unpopular, but we have to take responsible moves and steps because the economic situation is so challenging.”