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Finland limps down road to euro treaty failure

“FINLAND is sliding down a recession-greased slope and risks building up more debt than eurozone members are allowed to have.

As early as 2015, Finland ‘won’t really have the means’ to keep debt below the 60 per cent threshold of gross domestic product allowed in the euro area, according to Pasi Holm, managing director at Helsinki-based PTT Research Institute.

‘Economic growth would help, but there’s none to be seen,’ Holm said in an interview.

The recession Finland sank into last year will continue through 2013, according to a Bloomberg survey of 11 economists. The development threatens to deplete government revenue and make it more difficult for the nation to live up to Europe’s budget rules, Holm said. Prime Minister Jyrki Katainen, who says Finland’s AAA is at risk, is meeting with lawmakers and industry groups to design a roadmap out of the country’s economic and fiscal plight…”

BLOOMBERG. 26 August KASPER VIITA

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