FINLAND’S OUTGOING FINANCE minister says he has secured support for the country’s approval of a Portugal bailout, removing a major hurdle for European plans to help the debt-stricken nation.
Jyrki Katainen’s conservative National Coalition Party, which won the national election last month, struck a deal with the second-largest party, the Social Democrats, to support the bailout.
With the earlier support of outgoing prime minister Mari Kiviniemi’s Centre Party, which whom Katainen had formed the last coalition, the rescue package for Portugal has enough backing in Parliament to be approved with a clear majority.
Katainen said the agreement includes conditions that call for Portugal to sell off assets in order to repay loans from EU countries, and to begin talks with creditors over support mechanisms.
Finland has yet to form a cabinet in the aftermath of last months’ elections, which saw a surge in support for the nationalist, anti-bailout True Finns party in the country’s general election on April 17 – seeing the party finish third, with 19 per cent of the popular vote.
The True Finns’ success meant that the party was likely to form part of the next government – and force a veto on any Finnish assistance for other struggling European countries.
Soini had indicated, however, that he would be willing to allow the bailout be voted through by parliament if the vote took place before any coalition was put together.
The European Union and the International Monetary Fund have promised Portugal €78bn in rescue loans, but EU rules require approvals from all 17 eurozone member nations.
“This has been an exciting moment for Finns and other Europeans,” Katainen told reporters. “A tight knot has been opened… and we have managed to unravel it with good cooperation and will.”
AP; additional reporting by Gavan Reilly
To embed this post, copy the code below on your site
have your say