Let Greece go?by Mari Kiviniemi / March 20, 2012 / Leave a comment
Published in April 2012 issue of Prospect Magazine
Europe is currently the problem case of the global economy. But we cannot achieve a more sustainable situation until we tackle the roots of the euro crisis—that is, over-indebtedness and reckless economic policies. We need to safeguard the wellbeing of our citizens, and preserve our high-quality education, social and healthcare systems. This calls for tighter budget discipline throughout the eurozone, better governance and intensified co-ordination of spending policies among the nations that signed the fiscal union treaty in March.
My country, Finland, is a small nation whose economy is based on foreign trade and a functioning internal market within the European Union is vital for us. Together with other states that hold the highest AAA rating, we have contributed to the operations aimed at saving the most troubled eurozone states. Providing Greece, Ireland and Portugal with assistance and creating financial adjustment programmes for them was necessary to prevent the crisis from expanding across the entire eurozone.
Now, however, when it comes to the provision of support packages we have reached the end of the road. This is the case, first and foremost, with Greece, which now might have better prospects for survival if it were to exit the euro. Certainly, an exit would not be easy—any such decision would have to be taken in a controlled manner, in collaboration with other eurozone states.