Finland has been a very poor country after WW II until the 1970s (compared to Sweden who had no war or Germany who lost the war). An economy best compared to Portugal or Greece.
The was a first overheating boom in the end of the 1980s, until a heavy recession took over in the 1990s. The next boom was Nokia driven in the 2000s until the global banking crisis. Since Nokia has fallen (well, it still exists but with a different business and more modest success) there has been little to no growth and heavy deindustrialization.
So basically Finland is back to the previous state of being a poor country with weak industry (I am exaggerating a bit). But the spending has continued to grow like the Nokia boom years had never ended.
Edit: Finland has one of the least favorite population pyramids in Europe. People getting older and no children. Very little immigration until maybe the last decade. And now a far right government with a strong anti-immigration agenda.
This is basically it, with the addition that Finland is no lomger in control of its own money. From the war up until adopting the Euro, Finland would devalue its currency a little over once a decade to keep commodity exports going.
The EMU is a mechanism effectively set up to extract wealth from the european periphery, for the benefit of Germany (and maybe to a lesser extent Framce). Finland is very much on the losing side, along with Greece, Portugal etc.
Perhaps with the difference that the culture is very protestant, with high trust in government. So rather than letting the situatiom deteriorate to what it was in southern Europe durkng the Euro crisis, the populace will flock to the stern faces speaking of deficits in the media, and dutifully vote them in.
> From the war up until adopting the Euro, Finland would devalue its currency a little over once a decade to keep commodity exports going.
True. When Finland dropped 2 digits from its currency in the 60s the Finnish Mark and the German Mark where roughly 1:1. When the Euro was introduced 40 years later the exchange rate was 3:1. So 200% inflation over the years more than Germany which was far from stable either. So Finland was a high inflation country all the time.
I don't think high inflation countries are known for good economy. Finland for example had massive emigration. I don't think by having continued the high inflation route after 2000 the situation would be significantly brighter today.
I don't understand this putting the blame on the EMU. The demise of Nokia has nothing to do with it. Finland getting de-industrialized also has nothing do do with it, but with the openness of the European market which brought us incredibly cheap commodities at the expense of our own industry. Even Germany is struggling.
> The EMU is a mechanism effectively set up to extract wealth from the european periphery, for the benefit of Germany (and maybe to a lesser extent Framce). Finland is very much on the losing side, along with Greece, Portugal etc.
Nonsense. „Devaluating the national currency“ is a euphemism for extracting wealth from the citizens without them realizing getting poor. The stability criteria are there to protect you from a government destroying your money.
I don’t get why so many Europeans think the Euro is hurting them economically while in reality it was holding them back (especially in Greece and Italy, their national currency was practically worthless). However, it takes time for member state governments to get used to an independent central bank.
The was a first overheating boom in the end of the 1980s, until a heavy recession took over in the 1990s. The next boom was Nokia driven in the 2000s until the global banking crisis. Since Nokia has fallen (well, it still exists but with a different business and more modest success) there has been little to no growth and heavy deindustrialization.
So basically Finland is back to the previous state of being a poor country with weak industry (I am exaggerating a bit). But the spending has continued to grow like the Nokia boom years had never ended.
Edit: Finland has one of the least favorite population pyramids in Europe. People getting older and no children. Very little immigration until maybe the last decade. And now a far right government with a strong anti-immigration agenda.