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PM satisfied with Brussels talks

Prime Minister Jyrki Katainen stated Friday that Finland is satisfied with the outcome of talks among eurozone leaders in Brussels. Finland says it will demand collateral on its portion of a bailout for Spanish banks using Europe's temporary rescue fund.

Pääministeri Jyrki Katainen.
Prime Minister Jyrki Katainen. Image: Yle

According to Katainen, overnight negotiations confirmed that the permanent rescue fund will remain the primary instrument for aiding ailing eurozone economies. However, if Spanish banks receive support from the EU's temporary rescue fund, Finland will demand collateral from Spain.

"That was clear to everyone yesterday," said Katainen.

The Prime Minister added that the decisions made at the Brussels gathering were more or less what Finland was pushing for.

"We can be satisfied that matters that would have been more difficult for us to approve of did not come up."

Finland is one of only a few EU countries to enjoy a triple-A credit rating. It has consistently called for fiscal responsibility and strict conditions on rescue packages for struggling eurozone members.

Dutch may follow suit

Spain has requested up to 100 billion euros of European funds to recapitalise its weakest banks. Finland's share is expected to be at most 1.89%, or just less than 2 billion euros.

If Finland seeks collateral for its part of rescue funds provided to Spanish banks, a few other eurozone countries may do the same.

According to information received by Yle from conference sources, the Netherlands intends to follow Finland's lead and also demand collateral on its portion of a bailout.

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