Pertti Majanen agreed there was a eurosceptic strand within Finland
Pertti Majanen agreed there was a eurosceptic strand within Finland

Cormac Ó hEadhra interviews EU Ambassadors about the euro crisis, member states' relationship with the EU and relations between Ireland and the country they represent.

The Finnish Ambassador has said it remains Finland’s position that European Stability Mechanism funds cannot be used for legacy debt.

The finance ministers of Finland, Germany and the Netherlands issued a joint statement to this effect after the EU summit of 29 June. This contradicted the Government's interpretation of the result of that summit.

But much has happened since – another summit in October; a joint communiqué from the Taoiseach and Angela Merkel suggesting Ireland was a "special" case; and ongoing negotiations on a debt deal by Irish officials.

Is it still Finland's position that ESM funds should not be used to ease legacy debt?

"It is at the moment. And the reason is we wouldn’t like to...at least at the moment...in overall terms, open that pandora's box."

He said he feared if Ireland was offered such a deal, that "in addition to Ireland there would be many others who would like to apply the same procedure".

When it was put to him that some EU member states wish Ireland to be a eurozone success story but refuse to allow ESM funds to be used for old banking debt taken on by the sovereign, he said he understood Ireland's frustration.

He added that Finland supports efforts to break the link between banking and sovereign debt.

Euroscepticism

Mr Majanen agreed there was a eurosceptic strand within Finland.

He said this goes back to the vote taken to join the European Union, which was won by a narrow majority. Finland has been a member state since 1995.

Last year saw the rise of the new nationalistic, anti-integration True Finns Party, which gave voice to this eurosceptic sentiment.

They recently made gains in local elections as well, but not as much as expected.

This domestic, political change among other factors has altered Finland's modus operandi in Europe.

"The role of Finland has partially changed in the European Union. Our tradition was very much of a compromise builder and now we have been more strongly defending our own interests."

The Ambassador rejected the assertion that euroscepticism was felt more widely in Finland, even among government members. He insisted Finland was committed to the eurozone and the union.

He did, however, attempt to contextualise the Finnish foreign minister's recent statement regarding the state's contingency plan in case of a euro collapse.

"The Ministries for Finance have to look into the repercussions of the possibility that a euro wouldn't exist. I think that is fair."

He said such a scenario was improbable and that Finland and the union were committed to rectifying the crisis.

Corruption

Finland is consistently perceived to be a country with little corruption, according to Transparency International.

After many years of expensive tribunals into various business and political dealings in this country, one wonders how a society like this is built.

The Ambassador said there were many historical and cultural reasons behind the comparatively low-level of corruption in Finland.

He said trust for public institutions and officials was important.

"Government in Finland is not really seen as an enemy as in some countries." He said the moral example of public officials "is very important".

When asked, without doubting the integrity of Irish politicians, if Irish leaders who get paid more than their counter-parts in other, larger states led by example, Mr Majanen was reluctant to comment.

"These are very national decisions that reflect the national history and heritage."

But when asked how Finnish people would react if their Premier was paid more than leaders in larger countries, he added cautiously: "I think there wouldn’t be much discussion of this issue in Finland because the understanding comes very easily that maybe the social, economic conditions in the other country are such that it can justify that kind of measure."

Without commenting specifically on the Irish situation, he added that "smaller income differences are part of the Finnish and Nordic models" when trying to ensure a fairer society.

Finland's future

Finland has an ageing population and growth forecasts there have been lowered, which makes planning for the future more difficult.

The Ambassador said a programme of cuts is being implemented in Finland now as well, despite its status as a triple-A rated country.

He said Finland does not fear the possibility of taking on more debt via communal, trans-European institutions.

On the prospect of a "European Finance Minister" having the power to veto national budgets, as suggested recently by German Finance Minister Wolfgang Schaeuble, Mr Majanen said the EU was not at that stage yet.

However, he said when work is done on a banking union and further integration, a European Finance Minister would be "a natural result" of such measures.