Economists at the Finnish
union confederations say:
The European Central Bank has to play a central role
in solving the euro
Helsinki (30.12.2011 - Juhani Artto) Economists for the three Finnish union
confederations (Akava, SAK and STTK) published a discussion
paper on the euro crisis one month ago. The 11-page paper examines and
analyses the root causes of the
present crisis and includes several proposals on how to get out of it. The
economists stress the need to safeguard the solvency of the crisis states
and also the need to recapitalise European banks in general.
They consider that the new stability instruments, the EFSF and ESM, are not
sufficiently extensive. However, for economic and political reasons they
cannot be expanded through national budgets. "The only operational
alternative that remains, is to increase the role of the ECB", the
They dismiss the idea of trying to solve the debt crisis by eurobonds that
would be jointly issued by the eurozone states. It would make market loans
cheaper for countries that have managed their economies poorly and more
expensive for countries that have managed their economies properly, the
Finnish experts argue.
Instead eurobonds could be used, for example, "to finance major pan-European
initiatives that aim at advancing the growth potential and competitive
of the EU", the union economists write.
Read the discussion paper: