The Republic of Finland, with a population of just over five million, has been part of the euro area since its inception. The country hit the headlines in April 2011 when the Eurosceptic True Finns party won almost 20 percent of the vote in a parliamentary election; the party had included withdrawal from the euro zone in its program. – The party had included withdrawal from the euro zone in its platform. The background to this was anger over the aid provided during the Greek crisis, the Irish crisis and the Portuguese crisis. In the wake of the financial crisis that followed the subprime crisis, Finland suffered an eight percent drop in economic output, the biggest slump in the euro zone. Policymakers in Finland then took a hard line, imposing tangible sacrifices on all citizens in order to regain budgetary balance and strengthen competitiveness under their own steam. Public resentment therefore built up against those members that enjoyed the benefits of the euro area’s fixed currency and low interest rates but did nothing to meet their obligations under the Stability and Growth Pact. – See bail-out, deficit financing ban, blackmail potential, ECB fall from grace, peer pressure, moral hazard, Plan C, policy clamp, policy default, stabilization mechanism, European, stand-by credit, transfer union, debt-productivity linkage, contract compliance, two-way option.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/