Greece’s nemesis, Finland, is trying to cope with its own harsh financial realities and its new government is planning radical austerity measures.
After three years of recession, the country of 5.4 million now faces five years of austerity.
There has been no harsher critic within the eurozone of largesse to struggling Mediterranean countries, including Portugal.
Perhaps this is because it has been the worst performing economy in the euro region outside the stricken south.
It has had to distance itself from its reliance on Nokia now that the company has lost ground to competitors and also has to contend with rising and uncompetitive labour costs and a reduction in the work force. It is now the fastest ageing country in the world, nudging Japan out of top place.
The economy is set to grow by only 0.8% this year, which would make it the third worst performing economy in the single currency after Cyprus and Italy.
The government has already laid out its plans for belt-tightening, proposing nearly €10 billion in spending cuts and reforms up until 2020.
The country has already been chastised by the European Commission for exceeding the eurozone debt and deficit limits this year.
Finland’s central bank governor has been insistent that creditors be willing to pull the plug on Greece if it does not repay its loans. Greece’s application late last year for a long-term extension was whittled down to three months rather than six.
But Greece may be able to sigh with minor relief as the new right-leaning coalition government of Finland has appointed the former prime minister, Alex Stubb, to now serve as finance minister.
Mr Stubb is very much pro-European, unlike the touted favourite for the post who is from the eurosceptic True Finns party and who had previously called for Greece to be ejected from the euro.
Comments
This needs specifying. In reality it means those countries that most desperately need the euro. Not necessarily European solidarity.
Unfortunately as UK PM Cameron trawls the EU countries seeking support for reforms - such as reducing or limiting UK benefits to other EU unemployed or needy in the UK he is up against quite crazy opposition such as the Polish PM saying they are vehemently opposed to the UK limiting these welfare payments as 'so much of it is repatriated back to impoverished Poles back in Poland'.
So yet again the UK is being penalised. This time for paying welfare at 2 or 3 times more than other EU countries minimum wage !
Is this really what the EU emphasis is on - redistribution of wealth from established tax managing countries to those with higher % of non-tax paying citizens ? Not economic growth ?