Finland to leave Euro? Go on!
This story made me laugh. I’m sure it won’t happen and if it did I expect it would be catastrophic for the Euro and probably have long reaching effects all around the world. Even in the Serviceteam office! But a small part of me would like to see it happen, just to see what would happen!
It’s all about Finland leaving the Euro. As it says in this article Finland has a current account surplus of €3.3bn and its overseas assets exceed it’s liabilities by €28bn. Its 2012 public sector deficit is forecast to be just 0.9pc of GDP with total debt just 50pc of GDP which itself is forecast to grow 1.8pc next year. And thus it doesn’t need to be in the Euro and can stand on it’s own two feet, unlike Greece, of course.
By leaving the euro it could become richer. An appreciating markka would reduce the price of imports and its overseas assets would rise in value. And of course, it would also avoid the escalating costs of one eurozone rescue after another.
So the question is, do they have the cojones to stand up to the Germans? Tell them to stick it and take a walk. Sadly the answer is probably, no. But then I don’t think anyone is prepared to stand up to the Germans in Europe. And that includes the UK!