January 16, 2012
Is Austria the New Finland?
Centre for European Reform, Centre for European Reform
In August 2010, a newly elected Slovak government refused to contribute to the first Greek bail-out. A year later, the rising popularity of the anti-euro True Finns pushed the Finnish government to demand that Greece should put up collateral in return for new loans. Which eurozone country will be next in line to hold up a bail-out package or veto new rules? Austria could be a good candidate.
Each time a smallish EU country balks at euro rescue efforts, analysts and policy-makers scramble to figure out its political dynamics and wonder why they had missed the brewing storm. With populism on the rise in much of Europe, and big countries dominating eurozone decision-making, it is only a matter of time before the next member-state throws a spanner in the works.
TAGGED: European Union, Greece, Austria, Slovak government, True Finns, Finnish government