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Korkman: No extra cost for Finland from Greek debt decision

A leading Finnish economic expert, professor Sixten Korkman from the Department of Economics at Aalto University, says he believes Finland will not necessarily have to pay more as a result of Monday’s deal on the Greek debt deal.

Sixten Korkman.
Professor Sixten Korkman. Image: Yle

On Monday, Finland agreed with other eurozone countries to grant Greece extra time to repay its debts at a meeting in Brussels.

”The Greek decision is something of a political conjuring trick: from an economic standpoint one should have cut Greece’s debts. However this is hard for politicians to swallow because Germany does not want to incur any credit losses,” Korkman explained.

Korkman added that until recently widespread scepticism had prevailed over Greece’s ability to repay its debt. However, in recent days that feeling had changed.

Finnish Finance Minister Jutta Urpilainen said that the deal was satisfactory.

"This is good for Greece and brings stability to Finland," said Urpilainen. "The deal is also good for Europe."

Eurosceptic MP Timo Soini, meanwhile, criticised the deal. He said that it was only a matter of time before other crisis-hit countries request a similar agreement to reduce their debt burden.

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