Katainen: Finland does not consider eurobonds a solution to the problems

The Commission presented today its views on the development of the euro area. It is good that the Commission has taken an open-minded approach to study all options available to develop the Union and prevent financial market crises particularly in the future. However, many problems and questions relate to the various options presented for the common issuance of stability bonds.

The first two options presented by the Commission would mean a switch to collective economic responsibility, thus making them unacceptable in their present form. The details, advantages and disadvantages of the third option can be more carefully evaluated in the near future. The stability bonds are not a solution to an acute crisis. Before further steps in the common issuance of bonds could be taken, the current crisis needs to be resolved by means of a sustainable solution and the euro area countries must fulfil the debt criteria set out in the Stability and Growth Pact.

Finland is of the opinion that each Member State is liable for its own public finances and its own debts. Finland joined a monetary union in which each state bears the responsibility for its own commitments. Such a significant change to this principle cannot be carried out in the name of crisis management, especially as the changes do not solve the acute crisis.

The reason for the current crisis is not the lack of joint responsibility. It is, instead, that euro countries' debts have too easily spiralled out of control regardless of the countries' economic performance. This has led to mistakes in national economic policies. Furthermore, many of the current problems originate from the non-compliance with common rules. The incentive and pressure to make tough decisions should not be taken away from the Member States. A switch to an unlimited joint reliability of Member States would be such a great change that it would require Treaty amendments.

With regard to the ideas presented by the Commission, Prime Minister Katainen considers the proposals relating to the strengthening of the Stability and Growth Pact the most essential. A regulation allowing the Commission's budgetary surveillance of Member States violating the policy obligations is welcome. Katainen points out that, in Finland’s view, sanctions for non-compliance should in future be enforced on Member States automatically.