Brussels, 27/04/2011 (Agence Europe) - Economic and Monetary Affairs Commissioner Olli Rehn is working hard in the Finnish media trying to convince the people of the importance of Finnish support for the bailout of Portugal. “The European bailout fund requires unanimity. This was, among others, Finland's, Germany's and other countries' demand. Only through a unanimous decision can the European bailout fund be used to prevent Portugal's bankruptcy. … Unanimity also means Finland's participation”, he said on Tuesday 26 April on the public radio and television channel YLE. The bailout is “not in the name of saving German or French banks, but rather supporting Europe's stability of growth and employment”, he added.
Following the general election, which saw the Eurosceptical “True Finns” party break through, negotiations have been continuing in Finland to form a new government. It is still not clear what attitude Finland will adopt in mid-May when the Ecofin Council will be called on to approve an aid package amounting to some €80 billion for Portugal in exchange for an austerity programme (see EUROPE 10346).
The commissioner noted that the European Stability Mechanism (ESM), which, in mid-2013, will replace the current European Financial Stability Facility (EFSF), which was used to support Ireland and shortly Portugal, will allow private creditors to be involved in cases of restructuring the public debt of countries in difficulty. “It is morally right and financially sound to implement investor responsibility. In this sort of crisis situation, when we are still facing the danger of it spreading and a chain reaction occurring through the bank sector, there is no reason to reach there”, he said. (M.B./transl.rt)