Anti-Europe party may back down

Helsinki: The True Finns may back down from threats to block Portugal’s bailout as the party tries to negotiate its way into Finland’s next coalition government.

The need for compromise is “certain,” said Ossi Sandvik, True Finns party secretary and the group’s No 2 after leader Timo Soini. “When everyone tries to make some of their goals happen, compromises are a necessity.”

The party’s change in tone may remove one of the biggest obstacles hampering European efforts to keep Portugal afloat.

The extra yield investors demand to hold 10-year Portuguese debt rather than German bonds of similar maturity widened this week to a record 635 basis points. The country can’t tap the European Financial Stability Facility for funds without Finnish backing, Commissioner for Economic and Monetary Affairs Olli Rehn claimed. There is no “Plan B,” he said.

The euro-sceptic True Finns party became Finland’s third biggest in the April 17 election on a pledge to ensure taxpayers don’t contribute to more bailouts. The group is now signalling that finance minister Jyrki Katainen may win backing for a Portuguese rescue package provided he agrees to True Finns demands on domestic policy.