Finland, which is not in crisis, does not appear to have any immediate plans to leave the Euro, but they are seriously considering establishing a local parallel currency so that they will have the option of pulling the plug on the Euro if it becomes necessary:
In the past couple of years, as the eurozone woes have unfolded, international investors have been transfixed by one small country on the edge of the region: Greece.
They would do well to keep watching another tiddler: Finland. For while Finland has not created much drama, precisely because it is one of the strongest eurozone members, some fascinating discussions are under way. Most notably, as the eurozone crisis rumbles on, some Finnish business and government officials are quietly mulling the logistics of leaving the currency union.
Nobody in Finland expects this to happen soon, if ever; indeed, most policy makers are strongly opposed to the idea. Particularly since many also hope the crisis is dying down, but as Heikki Neimelaeinen, chief executive of the Municipal Guarantee Board says: “We have started openly discussing the mechanism of euro exiting, without indicating that we will initiate such a process.” And this, in turn, is sparking some curious economic debates.
Take a look, for example, at a recent research paper from Nordea, the Nordic bank. This paper looks at the question of what might happen if Finland ever decided to run a so-called “parallel currency” system. The idea behind this, as Nordea explains, is that at times of stress it can sometimes seem beneficial for countries to maintain more than one currency unit. Most notably, if a country is trying to leave one currency, keeping that as legal tender alongside a second currency for a period can ensure a country honours its old contracts – and thus avoids a technical default.
Finland is a net creditor in the EU, and it is highly unlikely that they would be forced out, so they have be planning to get out of Dodge if the sh%$ hits the fan.
This is significant, because it’s showing a lack of confidence from one of the net beneficiaries of the Euro zone.