Finnish analysts envision Greek exit from euro zone

Finnish analysts said European politicians do not want the possible exit of Greece from the euro zone to be an example for other countries to follow, but it could be an attractive path if the economy gains momentum after discarding euro.

Finnish economic commentators seemed to agree largely on Monday that Greece was on its way to leave the euro though it is not totally certain.

Researcher of political economics Lauri Holappa told national broadcaster Yle that even though local circumstances in Greece could be chaotic after discarding euro, the economy could begin rising later.

Lauri Uotila, an adviser at the Danske Bank, said that while no other countries are likely to follow Greece now, the situation could be different in five years.

Such commentary can easily catch the imagination of people in Finland, where during the election campaign last spring the restoration of the old currency markka was mentioned by populist parties.

Although the country is by no means indebted in Greek dimensions, the Finnish competitive edge in export product prices has worsened recently and an internal devaluation involving lower salaries and cutbacks in public sector has been suggested by the current government.

Analysts noted that "final deadlines" for Greece have been changed in recent months, but a 3.5 billion-euro-installment due in two weeks forms a real deadline. If Greece cannot pay it, the European Central Bank will find difficulty in giving further support to Greek banks. Endit