Finland's finance minister, Jyrki Katainen, warned on Monday said that there could be a new financial crisis if Europe does not help Portugal, as he fights to head off a challenge from opponents of bailouts for European struggling peripheral economies, ahead of a general election on Sunday.
The conservative National Coalition Party, which is headed by Katainen who is also deputy prime minister, remains the most popular party according to a poll by the newspaper Helsingin Sanomat.
YLE, the state broadcaster, reports
that the populist anti-bailout True Finns Party has however dropped from second
to fourth place in the poll.
The National Coalition have 20.2% support; the
Social Democratic Party 18.0% and the Centre Party is at 17.9%. True Finns
Party has 16.9% support.
Finland won’t agree to changing the terms of Ireland's loans, Katainen told YLE in February.
“There is an understanding in Europe and the euro area that the requirements can’t be eased in a way that would endanger the work to bring the Irish economy back to health,” Katainen said.
"The message is this: since 2009,
Finland lost €40bn of tax money because of the financial crisis. In 2009,
Finnish pension funds' return was €17bn negative," Katainen told Reuters
Timo Soini, head of the anti-EU True Finns party, says on bailouts: “People just don’t get it, don’t want it.”
A delegation from the International Monetary Fund, European Central Bank and European Commission is expected in Lisbon on Tuesday for initial talks on an estimated bailout worth €80bn.
Nobody supports debt
restructuring at this stage in the Eurogroup council of Eurozone finance
ministers, Katainen said.
Portugal is due to hold a general election on June 5th. It has debt of €4.5bn maturing on Friday and will need to raise a further €7bn in June.
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