Finland's trade deficit widened to 340 million euros in December from 26 million euros in the corresponding month last year, RTT News reported. The value of exports fell 5.0 percent year-over-year in December, while imports climbed by 1.0 percent. According to the results of the latest cepDefault-Index 2016 , the eurozone's problems are not yet solved. The figures indicate that falling creditworthiness has become firmly established in six eurozone countries: Finland, Greece, Italy, Portugal, Slovenia and Cyprus. Finland has exhibited falling creditworthiness since 2013.
. See also our cepDefault-Index 2016
Finland is at crossroads, its finance minister suggested in an interview with Bloomberg. “This spring will be make-or-break for the Finnish economy,” Alexander Stubb said. If the government will get its reform agenda right, “we’ll see Finland again move towards an economic miracle,” the minister reckoned. The government has given trade unions and employers less than two months to suggest how to reduce labor costs by five percent, Bloomberg reported. The goal is to make the country’s economy competitive again via internal devaluation. The cepDefault-Index 2016 shows that falling
Der IWF hat sich neue Regeln für die Vergabe von Krediten an Krisenstaaten gegeben, berichtet die Frankfurter Allgemeine Zeitung. Wenn Länder hoch verschuldet sind, will der IWF nicht länger wie bisher eine Restrukturierung der Kredite erzwingen. Stattdessen könnten in Zukunft auch die Laufzeiten kurzfristiger Schulden verlängert werden. Die Reform werde dem IWF auch in den anstehenden Verhandlungen um Griechenland helfen, schreibt die Zeitung. Laut dem an diesem Montag veröffentlichten cepDefault-Index 2016 ist Griechenland auch weiterhin nicht kreditfähig. „Selbst die umfassenden
Support in Finland for staying in the Eurozone has fallen to 54 percent in a recent survey, Reuters reported. 31 percent of citizens surveyed in the poll by public broadcaster YLE said they wanted the country to exit from the currency union. Asked whether Finland would do better outside the eurozone, 44 percent answered yes. The Finnish economy is in a stubborn recession partly due to elevated labor costs. The cep already highlighted last year in its Default Index the urgent need for action in the country.
Laut einer aktuellen Umfrage wollen nur noch 54 Prozent der Finnen, dass ihr Land in der Eurozone bleibt, berichtet die Nachrichtenagentur Reuters. 31 Prozent befürworten einen Austritt. Und 44 Prozent glauben, dass es Finnland außerhalb der Währungsunion besser gehen würde. Aufgrund eines erfolgreichen Volksbegehrens muss das finnische Parlament im nächsten Jahr über einen Austritt aus der Eurozone debattieren. Als Grund für die wachsende Euro-Skepsis wird die anhaltende Wirtschaftskrise des Landes gesehen. Das cep hat bereits im vergangenen Jahr in seinem Default-Index auf dringenden
The rating agency S&P has cut its outlook on Finland to negative from stable. The agency said it expects the Nordic country to experience below-average GDP growth. Finland’s economy is being weighed by a lack of competitiveness, declines in traditional industries, and a rapidly aging population, S&P said. The cep already highlighted last year in its Default Index the urgent need for action in Finland.
Germany is looking at whether the EU could provide guarantees for Greek debt to the IMF, German weekly Die Zeit reported. Thereby, Germany aims to keep the IMF on board without having to offer major debt relief for Greece. The cep does not believe that Greece’s public debt burden is sustainable. The cepDefault Index shows that there is no sign of Greece regaining its creditworthiness anytime soon.
Due to its failure to build a competitive labor markt, Finland is emerging as the European Union’s weakest economy, Finance Minister Alexander Stubb said according to Bloomberg. The minister warned that the Finnish economy was set to contract for a fourth consecutive year. Stubb called the development “worrying.” The cep already highlighted last year in its Default Index the need for action on the economic front in Finland.
that cannot be managed at the national level alone”, Juncker said. He announced that the EU Commission “will prepare the ground for this to happen in the second half of this mandate.” The cep, however, believes that instead of creating an Euro-Treasury it would make more sense to introduce a sovereign default regime for the eurozone. Thereby, markets would exert the necessary reform pressure on governments, something which the EU Commission or the Eurogroup has never been able to do. The cep has drawn up a blueprint for a sovereign default regime. You can find it here .