Stubb at the Annual Meeting of Heads of Missions: “No, no and no is not a valid response to the euro crisis”
Press release 182/2012
20 August 2012
“I want to make it clear that Finland is committed to euro – at the very heart of it – and willing to develop the Economic and Monetary Union in a constructive spirit. The key to solving the eurozone crisis is growth, and growth cannot be achieved without reforms. However, the debt crisis is not the full picture of European economy, but there are also great strengths in the economy of Europe. Therefore, we should not give in to euro pessimism.” These were the themes Minister for European Affairs and Foreign Trade Alexander Stubb, who spoke at the Annual Meeting of Heads of Missions, used to summarise his message he hoped the heads of missions would take forward in their host countries.
About euro
“Finland is most committed to euro. I want to make it clear that there is neither any wavering nor any hidden agendas on this point. For Finland, euro is an irrevocable choice. For a small economy like Finland, which is strongly dependent on exports, it is a great advantage to belong to the same currency zone with our main market areas. Even though the euro crisis dominates the headlines, it is an undeniable fact that euro has brought stability to the Finnish economy. It has also brought quite concrete benefits to each and every Finn. During our time in euro, the amount of real income available to Finnish households has grown in every income group.
Commitment to euro requires that this commitment is deepened even further. The debate about this issue is about to begin. We cannot simultaneously say, on one hand, that we give our support to euro, but, on the other, refuse to enhance its operating conditions. Under the circumstances, holding one’s current positions is not a valid alternative. I consider it natural that a proposal be drawn up to serve as a basis for decision-making, like in any other European Union decision-making process. In the European Council in June, it was concluded that the Member States will be linked closely into this deliberation process and they will be heard regularly even in the preparation phase. Let us join the process without prejudice and stop shouting our comments from the sidelines.”
About growth
“Europe needs growth and dynamism in order to manage as the population ages. Reforms are the only appropriate way forward. At the EU level, this means deepening of the internal market in particular. We need a digital internal market in particular, but intentions have not evolved into concrete measures, even though everyone knows what should be done. However, the largest obstacles are found in the national structures. Too much regulation, too many limitations, too much inflexibility. In this respect, Finland is less than a squeaky-clean model student; the Commission does observe shortcomings even in Finland, for example in the competitive environment and on the labour market. The crisis will not turn into growth before the euro countries radically reform their structures. More freedom for the business sector, less bureaucracy."
About the future of Europe
“I cannot stand wisecracking, describing Europe as simply a continent where the sun is setting with chinas, americas and indias leaving us far behind. The fact that rising economies are gaining up on us does not mean that they would be even on the same lap yet. Even at the moment, there are many highly competitive economies in Europe. There are six EU countries on the World Economic Forum’s list of the ten most competitive countries in the world. Some of the best companies and universities of the world are in Europe. In other words, the economic foundations required in the 2010s are in order. The starting points for growth are clear, but all this requires correct policies.
Fundamentally, the eurozone crisis is political by nature, and it must be solved by following a right policy that frees the European trade and industry to produce growth and welfare. I believe in Europe: the answers to the crisis will be found together, not by burrowing ourselves into national foxholes."
Additional information: Antti Timonen, Press Attaché to the Minister, tel. +358 40 590 7231, e-mail: [email protected]