Finland seeks guarantees against bailouts

Finance minister Jutta Urpilainen with Finnish prime minister Jyrki Katainen. Photograph: Jussi Nukari/lehtikuva/Reuters

Finland's new finance minister said today the Nordic country will demand guarantees against participation in any new euro area bailouts and wants private investors to bear more of the burden.

"We want to limit Finland's responsibilities. The new government has taken a tougher stance than the previous government regarding crisis countries' aid packages," Jutta Urpilainen told in a television interview with public broadcaster YLE.

She said guarantees could be shares in a company managing the debt-laden state's properties.

Ms Urpilainen admitted Finland's demands had not met wide support in other euro area countries.

In Finland the parliament, unlike in other euro zone countries, retains the right to approve funds for aid packages to troubled euro area countries such as Greece, Ireland and Portugal.

Ms Urpilainen was appointed finance minister last month after her party, the Social Democrats, joined the coalition government led by the right-leaning National Coalition.

The government has promised to keep Finland on a pro-European course despite the growing popularity of the euroscepbtic True Finns party, which is against the country's participation in bailouts.

Reuters

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