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FM Soini: Greek bailout policy a moral hazard and a pyramid scheme

Finland's Foreign Minister Timo Soini told Yle late Monday that Greece is insolvent, but won't admit it.

Timo Soini
Timo Soini Image: Vesa Moilanen / Lehtikuva

In an Yle TV interview late Monday, Foreign Minister Timo Soini said that in practice, Greece is now insolvent.

"My bet is that actually Greece is insolvent, but won't admit it and say it out loud. Greece can even go bankrupt and still stay in the eurozone," he told Yle.

Soini went on to express the view that Greek bailout policy poses a moral hazard.

"This is a moral hazard and a pyramid scheme that will continue as long as the milkmaid has a cash cow to milk," said the Foreign Minister.

He did not, however, rule out the possibility of continuing negotiations with Greece.

Parody, comedy, tragedy

According to Soini, the Greek economic crisis is simultaneously a parody, a comedy and a tragedy where anything is possible.

"Usually someone in debt does not set conditions, but rather pays his debt, so this arrangement is a bit upside-down," said Soini, adding that it cannot be allowed to happen that European taxpayers foot the bill for what he called "the Syriza party's unrealistic election promises".

The Finnish Foreign Minister described the situation for Greece as "very difficult".

"Greece is running out of money. Not even the European Central Bank can finance this kind of thing to the ends of the earth, because money does not appear out of thin air."

Soini said that the some 7 billion euros that Greece turned down last week could still be paid out since it is part of a loan package that was already approved, and not new financing.

In contrast, the Finnish Foreign Minister is not warming towards the idea of a third package of supports for Greece.

"It is quite clear under the government programme that Finland's responsibility cannot be allowed to grow and what would that be other than increased responsibility? This is Finland's position, fixed in the government's programme and I would be truly amazed is the government does not hold to its own programme," stated Foreign Minister Soini.

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