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Katainen: Cypriot crisis could spread

Finnish Prime Minister Jyrki Katainen warned on Wednesday that the crisis in Cyprus could spread. According to Katainen, the euro group offered Cyprus a responsible model to deal with the crisis, and if it is not implemented problems could spread to other eurozone countries.

Jyrki Katainen saapumassa suuren valiokunnan kuultavaksi eduskunnassa.
Jyrki Katainen saapui suuren valiokunnan kuultavaksi eduskunnassa keskiviikkona. Image: Martti Kainulainen / Lehtikuva

He said that owners and investors must carry the bulk of responsibility for the crisis in the Cypriot banking sector. Katainen does not believe it possible that Cyprus will withdraw from the eurozone. He said that such a move would be disastrous.

Katainen described the situation to Yle as "difficult" and one that needs to be handled with moderation.

Samaras cancels visit

The Prime Minister's Office in Helsinki announced on Wednesday that Greek Prime Minister Antonis Samaras has cancelled a visit to Helsinki scheduled for this weekend because of the deepening Cypriot crisis.

Prime Minister Katainen and Minister for European Affairs and Foreign Trade Alexander Stubb will be hosting a high-level informal meeting at Saariselkä in Finnish Lapland. Discussions at the informal meeting will focus on the future of Europe.

The intention is to bring European leaders together to discuss issues concerning the future of Europe and the European Union in an informal manner. The official agenda will not include topical issues and the meeting will not be making decisions or setting guidelines.