Auteur/autrice : David

A warning to Finland on household debt

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Summary:

The European Systematic Risk Board (ESRB) has issued a warning to eight EU countries, including Finland, on the medium-term vulnerability in the housing market. The task of the ESRB, which has the power to issue warnings and make recommendations, is to monitor developments in financial markets and take steps to prevent and limit risks that they believe to be a threat. The ESRB regards Finland’s vulnerability to be its rate of household debt and growing levels of indebtedness – particularly amongst some groups of households. Household debt is currently at a historical peak and Finland’s debt-to-GDP level is above the average for EU countries.

EVA report: Hard Brexit most likely – and best alternative for Finland

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Summary:

A report by the Finnish Business and Policy Forum EVA finds that Brexit will likely take the form of a ‘hard Brexit’, which would also be the best alternative for Finland. The EU’s unity and a well-functioning internal market are very important to a small country like Finland and therefore it should not support the kind of ‘soft Brexit’ that would increase the risk of division within the EU, the report states. The Research Institute of the Finnish Economy has estimated that a hard Brexit would diminish the Finnish GDP by 0.25 percent in the early stages. Brexit would increase the influence of large EU member states, but the status of Finland and other middle-sized member states would hardly alter.

Mykkänen: Erdogan’s threat to open borders for refugees is a game

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Summary:

Minister for Foreign Trade and Development Kai Mykkänen, who is currently substituting for Minister for Foreign Affairs Timo Soini, says President Recep Tayyip Erdogan’s threat to open Turkey’s borders to Europe is a game even though the situation is serious. Mr Mykkänen notes that the European Parliament’s decision to freeze membership negotiations with Turkey indicates that the human rights situation in Turkey has developed in a worrisome way after the failed coup last summer. He says that cooperation with Turkey on refugee issues should be possible also in the future but at the same time the country should be pressured into upholding rule of law.

Commission sees risks in Finland’s public finance

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Summary:

The European Commission considers Finland to be one of the countries who are at risk to violate the rules of the Stability and Growth Pact. Minister of Finance Petteri Orpo states that the Commission’s view was expected and that corrective measures will need to be taken in order to put the Finnish economy back on a sustainable track. The EU has also reached an understanding on the Union’s budget for next year. The agreement is in line with Finland’s goals. Finland found it important that the focus of financing reflects current needs better.

Media:  Verkkouutiset / Nykypäivä

Criticised Team Finland sheds its skin

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Summary:

Team Finland activities are being reformed based on working group suggestions in order to improve customer orientation and to eliminate overlaps. The Finpro and Tekes growth programmes will be combined into six larger programmes, and the possible full merger of Finpro and Tekes will be considered. According to Minister of Economic Affairs Olli Rehn, regional growth and internationalisation coordinators will also be set up around the country to help businesses find new markets. Confederation of Finnish Industries CEO Jyri Häkämies, a member of the working group, called for increasing Team Finland resources. Minister for Foreign Trade and Development Kai Mykkänen has appointed six assessment teams comprised of executives to find ways of opening bottlenecks in key target markets.

Mykkänen marketed Finnish know-how in Africa – « many other countries ahead of us in this respect »

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Summary:

Minister for Foreign Trade and Development Kai Mykkänen opened on 16 November an electricity supply modernisation project in Dar es Salaam, Tansania, which Finland has financed for almost 30 million euro and in which Finnish company Eltel Networks has also been involved. The wider purpose of Mr Mykkänen’s trip to Tansania and Kenya is to open up export opportunities for Finnish companies in environmental technology and to promote implementing cleaner energy technology and fighting climate change. The Sipilä government favours financing investments when it comes to development co-operation. Mr Mykkänen describes it as a win-win situation when investments in infrastructure help improve the standard of living in poor countries and operational preconditions for businesses and at the same time Finnish businesses are given the opportunity to sell their know-how. Mr Mykkänen says that Finland now has an important momentum in promoting investment-based development projects and that many other countries are ahead of Finland in this respect.

Timo Soini does not believe in Trump threat: « Finland will do fine »

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Summary:

Minister for Foreign Affairs Timo Soini believes that Finland will do fine despite Donald Trump’s election as President of the United States and that the country should continue current foreign and security policies. Former Finnish PM Alexander Stubb wrote earlier in a column in the Financial Times that he was worried Mr Trump and Russian President Vladimir Putin would « neutralise » Finland’s and Sweden’s NATO option and create a security policy vacuum in Northern Europe. Mr Soini says that he does not believe this scenario and that he is confident that the US, NATO and the EU all understand how important good transatlantic relations are.

Foreign Affairs Committee softened government stance on Russia – Salolainen: ”One cannot dance tango alone”

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Summary:

The Finnish Parliament’s Committee on Foreign Affairs has released an updated overview on the government’s foreign and security policy report. The overview deals with Finland’s relationship with NATO and the tightened security environment of the Baltic Sea. Unlike the report, the overview indirectly emphasises also NATO’s actions and role in the increased tension in the Baltic Sea region. Committee Chair Matti Vanhanen denies the Committee had softened their stance on Russia and says that they aimed at a dispassionate and objective evaluation. The overview also predicts a deepening EU defense cooperation. The Committee outlines that in the future, EU defense will be addressed more ‘comprehensively’ than before.