Finland’s strict message to Greece: “You can forget about debt relief”

The Finnish PM told Greece that elections on January 25 would not change anything and that its austerity program would continue

Finnish Prime Minister Alexander Stubb stated loudly and clearly that Finland’s answer to a possible debt relief request by Greece would be a “resounding no”. He told the Financial Times that he would not support debt forgiveness and he is reluctant to back another extension of the 172-billion rescue. These statements place the Finnish PM against the Greek main opposition Radical Left Coalition SYRIZA party that hopes to renegotiate debt should it be successful in the January 25 elections.

“We naturally do not want to influence the Greek elections,” said Mr. Stubb. “But I think it’s fair to Greeks and Finns to say out loud that some of the statements by Greek parties, and their presentations and ideas about the current programs are simply unacceptable for Finland.”

Mr. Stubb, however said he could “exclude the possibility” of backing an extension of the EU bailout that is due to expire next month. Eurozone officials point to Helsinki’s hard line in closed-door talks as the Finnish government believes that a longer extension of the Greek program could “inflame anti-euro populists in Finland’s upcoming parliamentary elections” due to take place in April.

Finland is also facing economic trouble with a contracted economy in 2014 for the third year in a row, leading to speculations that a depressions would continue in 2015. For this reason, Mr. Stubb said that no one in Greece should  have any “skewed kind of ideas” that loans could be forgiven or the current program to be stopped in Greece as this would be “both economically and politically simply impossible for a country like Finland, which is itself struggling at the moment.”

Mr Stubb called on Greece to continue with reforms. “The Greek elections will not change economic reality. Greece has done a lot to save its economy and get growth going. But, just like with all of us, the process is only halfway there. Greece will have to continue economic reform to get growth going again,” he added.