Bloomberg News

Europe’s Focus Is on Removing Euro Failure Risk, Katainen Says

December 17, 2012

Finnish Prime Minister Jyrki Katainen said European policy makers will use the next six months to remove risks of a euro breakup.

“We’ll support healthy countries so that they keep access to markets and don’t topple and have to be rescued by others, because that would be a very difficult situation,” Katainen said at a panel discussion in Helsinki today. “This would hopefully help eliminate the risk of the euro’s failure. That’s one of the key targets for the coming six months.”

Efforts to tackle Europe’s debt crisis, now in its fourth year, are starting to make an impression on bond markets. Spanish and Italian yields fell after European Central Bank President Mario Draghi in July pledged to do “whatever” it takes to keep the euro together, and have continued to ease since. Europe’s leaders have also agreed on measures including fiscal discipline and last week decided on a single bank supervisor to break the link between banks and sovereigns.

Katainen said he’s “mainly speaking about large countries” in the monetary union.

“What we can do is to remove the risk of the euro’s failure,” Katainen said. “If that risk isn’t removed, this crisis will never end.”

To contact the reporter on this story: Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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