Monday 21 June 2010

European Financial Stability Facility in Finland

I have wondered why, day after day, the greatest number of visitors on Grahnlaw comes from people looking for information about the European Financial Stability Facility (EFSF).

The reason, as I see it, is the lack of credible and detailed official information available about this potentially huge defence arrangement for the common currency.

Three blog posts on 8 June 2010 summed up the available information: European Financial Stability Facility EFSF, Where democracy and transparency in eurozone rescue? and Commission tasks: European Financial Stability Facility (EFSF).

As in the case of the Greek rescue package, little improvement has been seen since then.

Factually, we have witnessed momentous pan-eurozone operations of collective defence, in the framework of the European Union.

Despite this, with the exception of a few press releases, the matters have been dealt with as bilateral and intergovernmental financial agreements, subject to unconnected national procedures.


European Financial Stability Facility

Let us turn to the national level to find some transparency.

According to a press release dated 3 June 2010, the Finnish government proposed the approval of the EFSF commitments.

The government bill, sent to parliament the following day, is available in Finnish and Swedish:

Hallituksen esitys Eduskunnalle laiksi Euroopan rahoitusvakausvälineelle annettavista valtiontakauksista HE 71/2010 vp (10 pages)

Regeringens proposition till Riksdagen med förslag till lag om statsborgen för ett europeiskt finansiellt stabiliseringsinstrument RP 71/2010 rd (10 pages)

The proposal has passed the committee stage, where its scope was widened (after the Euro Group meeting), and its contents have been approved by the plenary. It is waiting for the final vote.


According to a press release of 17 June 2010, available in Finnish and Swedish, the government of Finland has proposed the approval of the framework agreement between the eurozone countries and the European financial [stabilisation mechanism, based on: Correction] stability facility


The government bill is available in Finnish and Swedish:

Hallituksen esitys Eduskunnalle Belgian, Saksan, Irlannin, Ranskan, Italian, Kyproksen, Luxemburgin, Maltan, Alankomaiden, Itävallan, Portugalin, Slovenian, Slovakian, Suomen, Kreikan ja Euroopan rahoitusvakausvälineen välisen ERVV-puitesopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten hyväksymisestä HE 95/2010 vp (49 pages)

Regeringens proposition till Riksdagen om godkännande av ett ramavtal mellan Belgien, Tyskland, Irland, Frankrike, Italien, Cypern, Luxemburg, Malta, Nederländerna, Österrike, Portugal, Slovenien, Slovakien, Finland, Grekland och det europeiska finansiella stabiliseringsinstrumentet samt med förslag till lag om sättande i kraft av de bestämmelser i ramavtalet som hör till området för lagstiftningen RP 95/2010 (53 pages)

Readers may know how these matters have been dealt with in other countries.

Ralf Grahn

1 comment:

  1. You are indeed right that there is almost no transparency on the fund, and it is just days away from being formed. crazy stuff.


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