Finland’s prime minister Jyrki Katainen is standing firm. As he arrived in Brussels on Thursday the 41-year-old centre-right leader made it clear Europe had to maintain the tough austerity course if it wanted to survive.
In a thinly veiled jibe at Nobel prize-winning economist Paul Krugman, who criticised the pro-austerity policies set by the European Commission’s economic chief and fellow Finn Olli Rehn, Katainen said that the debate around austerity versus growth might have academic value, but it has little value for common people.
“There are no shortcuts to creating new jobs and growth in a sustainable manner. Structural reforms might not bear fruit overnight, but are the best sustainable economic stimulus. Accumulating excessive debt is not,” said Katainen.
He added: “The future of our common currency can be guaranteed only if each member state keeps its fiscal house in order and takes the jointly agreed rules seriously.”
After the jump, you can find the Finnish leader’s full remarks: Read more
Finland's Jyrki Katainen, right, with Cameron during a visit to Downing Street last year.
In the run up to Friday’s big speech by British prime minster David Cameron on his country’s future in the EU, some of the loudest voices of concern have come from the UK’s closest allies, including Washington, Dublin and Warsaw.
In a meeting with a small group of reporters today in Brussels, Jyrki Katainen, the Finnish prime minister, added his voice to that list, saying that he cannot see what kind of competences Cameron could pull back from the EU.
“Being a member of the EU, and especially in the single market, you cannot kind of pick the raisins out of the bun,” said Mr Katainen, whose National Coalition party is closely aligned with British Conservatives on most major policy issues. “It’s very difficult to say what would be the competences that could be repatriated.”
Katainen added: “The EU without Britain is pretty much the same as fish without chips. It’s not a meal any more.” After the jump, we’ve transcribed the Finnish leader’s full remarks. Read more
Monti, left, and Katainen at last week's meeting between the two prime ministers in Helsinki
It is axiomatic that politics make strange bedfellows, but it would be hard to find stranger bedfellows than Finland, the orneriest of the eurozone’s austere north, and Italy, the biggest debtor in its troubled south.
Even before the eurozone debt crisis put the two countries on a collision course, Helsinki and Rome had their run-ins, particularly after Parma beat out a Finnish competitor to host the European Food Safety Authority – and then-prime minister Silvio Berlusconi poured salt in the wound by suggesting EU officials would prefer Parma’s famous ham to Finnish smoked reindeer.
But are there suddenly signs of a thaw – or even an alliance? First, Berlusconi’s successor, Mario Monti, last week decided to visit Helsinki for meetings with Jyrki Katainen, Finland’s prime minister. Now, top officials from Berlusconi’s centre-right party appear to be adopting a Finnish plan to help lower Italian borrowing costs. Read more