Europe is focusing more on boosting growth through reforms that increase confidence, Finland’s Prime Minister Jyrki Katainen said in an interview with Maryam Nemazee on Bloomberg TV today from Davos, Switzerland.
“We cannot afford to stimulate the economy,” Katainen said. “Growth comes when the confidence comes back and the confidence comes back when you do structural reforms even though it takes time.”
While the European debt crisis is still “ongoing” and reforms take years, “markets want to see decisions” by indebted countries to reform their economies, Katainen said.
Finland has sought to increase burden sharing by investors in the three bailouts that have taken place since the start of the debt crisis. Katainen said he’s “worried” about the impact of the crisis on the export-led Finnish economy.
To contact the reporter on this story: Maryam Nemazee in Davos at firstname.lastname@example.org
To contact the editor responsible for this story: Kati Pohjanpalo at email@example.com