Why Finland wants out of the Eurozone
The Finnish parliament is currently discussing if the country should quit the euro. This should probably happen some time at the beginning of next year. While a decision for leaving the Eurozone is unlikely, the debate on the issue itself shows that Finland does have a problem with the European currency.
The question will be discussed after a civic petition managed to collect 50 thousand signatures from citizens - probably the first such case in the history of the currency union. The petition insists on a referendum for leaving the Eurozone, but in order to have such a referendum, first the Finnish parliament will have to give its approval.
Despite the financial problems with the Euro, a recent Eurobarometer research shows that 64% of the Finns still support their membership in the currency union. But last year they were 69%, which means support is dwindling.
Finland was affected by a three-year recession, and is currently the worst-performing country within the Eurozone. Even Greece is doing better. A number of economists believe the euro has been a major factor for the deterioration of the Finnish economy. By reverting to its national currency, Finland could have a chance to tinker with its interest rates on its own and devalue the Finnish markka, the proponents of this measure are arguing. This could make the Finnish exports much cheaper and thus, more competitive. The expenses for conducting such a move are estimated at 20 billion euro, but in the long term it could have a positive effect on the Finnish economy.
Right now, the value of labour in the country is the highest in the Eurozone. The economists are giving Sweden as an example for comparison, a country that is a EU member but not an Eurozone member. The Swedish economy has grown by 8% since 2008, while the Finnish one has shrunken by 6%. Granted, it wouldn't be very fair to try to compare the Finnish economy to the Swedish one, but the issue remains that the euro is now being increasingly perceived as a liability rather than an asset to Finland.
The question will be discussed after a civic petition managed to collect 50 thousand signatures from citizens - probably the first such case in the history of the currency union. The petition insists on a referendum for leaving the Eurozone, but in order to have such a referendum, first the Finnish parliament will have to give its approval.
Despite the financial problems with the Euro, a recent Eurobarometer research shows that 64% of the Finns still support their membership in the currency union. But last year they were 69%, which means support is dwindling.
Finland was affected by a three-year recession, and is currently the worst-performing country within the Eurozone. Even Greece is doing better. A number of economists believe the euro has been a major factor for the deterioration of the Finnish economy. By reverting to its national currency, Finland could have a chance to tinker with its interest rates on its own and devalue the Finnish markka, the proponents of this measure are arguing. This could make the Finnish exports much cheaper and thus, more competitive. The expenses for conducting such a move are estimated at 20 billion euro, but in the long term it could have a positive effect on the Finnish economy.
Right now, the value of labour in the country is the highest in the Eurozone. The economists are giving Sweden as an example for comparison, a country that is a EU member but not an Eurozone member. The Swedish economy has grown by 8% since 2008, while the Finnish one has shrunken by 6%. Granted, it wouldn't be very fair to try to compare the Finnish economy to the Swedish one, but the issue remains that the euro is now being increasingly perceived as a liability rather than an asset to Finland.