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Urpilainen: Finland should actively promote EU financial transaction tax

Finance Minister Jutta Urpilainen wants Finland to play a greater role in the implementation of a financial transaction tax within the EU.

Jutta Urpilainen TV1:n Ykkösaamussa 29.syyskuuta 2012.
Jutta Urpilainen TV1:n Ykkösaamussa 29.syyskuuta 2012. Image: Yle

Her comments came in the Yle TV1 programme _Ykkösaamu _on Saturday.

The introduction of an EU financial transaction tax primarily has the support of France and Germany.

”I respect the fact that both nations are actively pursuing the implementation of such a tax. In my view, Finland should be alongside helping in its promotion,” the Finance Minister observed.

She added Finland must decide within the week whether to sign up to the tax. Currently there is dissention within the ranks of Finland’s six-party coalition government over the issue.

Commenting on Urpilainen's remarks, Prime Minister Jyrki Katainen told Yle he would not speculate on the issue at this stage.

The idea for an EU financial transaction tax was proposed by the European Commission in September 2011.

Spain on the right track

Urpilainen also commented on the Spanish banking crisis. She noted the outcome of the recent stress test on Spanish banks demonstrated the country’s economy was moving ahead as planned.

“If Spain’s capital requirement remains at 50 billion euros, this would be positive as earlier estimations made during the summer assumed a maximum need of as much as 100 billion euros,” she commented.

Industry overreacting on redundancies

Turning to domestic affairs, Urpilainen expressed her concern at the current spate of redundancies in various industrial sectors. She thought many businesses were overreacting in the current financial situation.

“The economic situation is a little weak but nothing surprising or dramatic is on the horizon,” she observed.

Urpilainen hoped industry would take a long term view noting that at some stage prospects will improve.

”Temporary lay-offs would be a more viable alternative to redundancies. I believe employees will be ready to show flexibility. They understand the situation,” commented Urpilainen.

The Finance Minister said she wanted to call in both sides of industry to discuss drawing up a common growth strategy with the aim of promoting investment and securing jobs.

Sources: Yle