Finnish vote could delay Lisbon rescue

first_img Share whatsapp Show Comments ▼ Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap’Small Axe’: Behind the Music Everyone Grooved On in Steve McQueen’sThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap Sunday 17 April 2011 11:16 pm Tags: NULL whatsapp KCS-content PORTUGAL’S €85bn (£75bn) rescue could be delayed by a surge of anti-EU bailout fatigue in Finland, where the eurosceptic True Finns looked on course for a stunning result in elections last night. Finland is unusual among Eurozone states in requiring a majority parliamentary vote for major decisions regarding the EU, which would include contributing to Lisbon’s rescue. And the Eurozone’s current temporary bailout facility requires a unanimous vote of all 17 member states to dispense aid.Economists predict “turmoil” if one of the Eurozone’s few paymaster economies – albeit one of its smaller members – resists the region’s third sovereign rescue. Newedge’s Bill Blain said: “If one core euro member does it, what’s to stop other sceptics in Holland and elsewhere doing the same?… An easy prediction for next week: stress and strain across the euro peripherals again. And that means increasing worries about banks.”“Delay in securing financial assistance to Portugal would… inevitably result in more market turmoil,” said Societe Generale’s Michala Marcussen, calling Finland a potential “thorn in the euro’s side”.The True Finns won 19 per cent of the vote, adding to the probability that the party could be part of a new coalition government.That is a dramatic increase from the 4.1 per cent they received in the last election in 2007.The True Finns, led by Timo Soini, are against a permanent Eurozone bailout fund and are in the same grouping in the European parliament as UKIP, the Europe of Freedom and Democracy party.Meanwhile, fears that the Eurozone’s peripheral economies could be damaged by interest rate rises by the European Central Bank (ECB) were dismissed by ECB executive board member Jose Manuel Gonzalez-Paramo. “A 25-basis-point increase like that on 7 April may not be convenient for those countries who are behind in their recovery, but the ECB cannot hold off its mandate because of that,” he told a Chilean newspaper. Finnish vote could delay Lisbon rescue last_img

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