Preparing for the Collapse of the Eurozone

Posted: August 27, 2012 in Governments, The End Is Nigh

At least looks like the Finns are doing just that. And why shouldn’t they? Even their politicians are openly talking about preparing for a breakup of the Eurozone.

In a shocking admission that shows just how serious the ongoing “Eurozone” crisis truly is, a Finnish official has come forward with information about how his country, which is among the strongest in the European Union (EU), plans to deal with a potential break-up of the euro. Erkki Tuomioja, Finland’s Foreign Minister, openly admits that his country is preparing for an eventual collapse of the Eurozone, and has contingency plans in place that may include reverting from the euro back to the country’s former currency.

Ouch! People were saying for years, that the breakup will come sooner or later, and they were ridiculed for it. Well, looks like we are close to it, since not even the politicians can afford to ignore the reality any longer.

Back to Finland. Here is the summary of the dilemma:

Though Finland is relatively strong compared to many other EU member countries, it is weaker than its non-euro Scandinavian neighbors, which include Sweden, Norway, and Denmark. Each of these countries still has its own unique currency, and all of them are growing and thriving much faster than Finland, which is bound to a union currency that is constantly being dragged down by Greece, Spain, and other economically-failing countries.

It is easy to understand why they are reluctant to continue bailing out irresponsible countries like Greece. Polling suggests that Finns do want to stay in the euro, but not if it means endlessly handing over cash to other countries. If the bailouts will continue (and it looks like they will), Finnish politicians are open about consdering a euro exit:

“There are no rules on how to leave the euro but it is only a matter of time,” said Timo Soini, leader of the True Finn party, to the U.K.’s Telegraph. “Either the south or the north will break away because this currency straitjacket is causing misery for millions and destroying Europe’s future. It is a total catastrophe. We are going to run out of money the way we are going. But nobody in Europe wants to be the first to get out of the euro and take all the blame.”

Finnish Prime Minister Jyrki Katainen has reportedly expressed opposition to recent proposals that will continue bailing out the struggling Southern European members of the EU at the expense of the flourishing ones. A majority of Finns sampled in a recent poll also said they were tired of Finland having to help bear the financial load for everyone else, as the continued bailouts are greatly depressing the Finnish economy.

Finland leaving the euro it might have a domino effect on the other countries. And that will be interesting.

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