Monday, April 11, 2011

Finnish confusion over Portuguese Bail Out.

A Helsinki paper gives some clarity to the chaos that next Sunday's elections in Finland seem likely to add to the now clearly crippled EU! The report may be read in full in English from this link, the crucial points appear in the paragraphs quoted here:

Katainen and Kiviniemi emphasised that the support of a majority in the Portuguese parliament would be a necessary prerequisite of the economic package.
      “This problem will be considered already when the package is put together”, Kiviniemi said.
      “Otherwise it will not be put forward”, Katainen insisted.
      The structure of the financial package is expected to be similar to that provided to Ireland. In it, the International Monetary Fund, the EU, and the eurozone countries take part in the financing according to the terms of the temporary stability mechanism, each with a one-third share.
Granting the guarantees to the stability mechanism requires the approval of the Finnish Parliament. Kiviniemi said that it is practically certain that the decision will be made by the new Parliament that is elected just over a week from now.
      The motion might have to be put forward by the government that is currently in office, as it is unlikely that a new government can be formed before Finland has to take a stand on the Portuguese bailout package.
      Kiviniemi said that she hopes to get “as wide support as possible” for the guarantees, if the present government has to deal with the matter as a caretaker government, which might not even have a Parliamentary majority behind it.

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