Eurozone crisis: So what is the solution?

24th August 2011

The Finnish prime minister, Jyrki Katainen has said that the country may withdraw support for the Greek bailout, as reported in the Daily Telegraph.

If Finland's bilateral agreement with Greece over collateral payments was overruled, the Nordic country could back out of the rescue programme, he says.

But what is this agreement?

Mindful Money blogger Shaun Richards says on his blog: "One part of the July 21st deal that officials and politicians tried to brush over was a request from Finland for collateral in return for her participation in the bail out. If they hoped that they could talk Finland out of this demand then this recent statement by the Finnish Finance Minister ended it."

This might not be the last request to add fuel to the fire, adds Shaun: "Just to add to the problem several other nations have decided they if Finland is going to get collateral they want some too. As we stand Austria, Slovakia and Slovenia have definitely stated this and the Netherlands has implied it will ask for it too…

"…There are various problems with this turn of events. One is that there is not much sign of unity being shown and the concept of joint liability and responsibility that is part of the Euro project seems to be weakening."

And so the problems spiral…

Demster comments on the Daily Telegraph report: "It's not looking good this is it, first the Germans weren't happy and now the Finns.  

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