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13 February 2014

Reuters: EU must rebuild unity, address populists' concerns - Finnish PM


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Finnish centre-right leader Jyrki Katainen said that mutual resentment between citizens of northern creditor states and poorer debtor countries was fuelling euroscepticism and posed a threat to the 28-nation bloc's unity.


Speaking at a Reuters eurozone summit, Katainen said calls for more European "solidarity" or a United States of Europe scared people unnecessarily at a time when globalization had made them fearful for their jobs and standard of living. "I don't see the areas in which we should go deeper", he said of the economic governance of the eurozone. The EU could develop its single market further, notably in energy, and boost defence cooperation within its existing structures.

Asked whether the EU treaty should be changed in the next five years after European Parliament elections in May, Katainen said he was a pragmatist and most of what Europe needed could be achieved by strengthening and extending its internal market. The key reforms to pensions, labour markets and education needed to keep Europe competitive with China and the United States, and make its social model affordable, were in the hands of national governments rather than of Brussels, he said.

To combat eurosceptics, who threatens to make big gains in the pan-European election, EU leaders should address the "fair and right questions" of voters tempted by populist politicians rather than talking to the leaders of such parties. "We cannot exclude those parties from politics because there are people behind them who are asking right questions", he said. "Direct speaking to the people is the best medicine."

The Finnish leader voiced support for keeping Britain in the EU, saying its liberal, free trading voice was vital to the bloc. But he cautioned against calls in London to repatriate powers from Brussels, saying the solution lay in better regulation. "I hope that the situation in Britain doesn't go too far that then there is no way back", Katainen said.

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