How to Leave the Eurozone: The Case of Finland

Tuomas Malinen 1 , Peter Nyberg 2 , Heikki Koskenkylä 3 , Elina Berghäll 4 , Ilkka Mellin 5 , Sami Miettinen 3 , Jukka Ala-Peijari 3 , and Stefan Törnqvist 3
  • 1 University of Helsinki, Department of Economics, Helsinki, Finland
  • 2 University of Helsinki, Helsinki, Finland
  • 3 , Helsinki, Finland
  • 4 VATT Institute for Economic Research, Helsinki, Finland
  • 5 Aalto University, Department of Mathematics and Systems Analysis, Helsinki, Finland
Tuomas Malinen, Peter Nyberg, Heikki Koskenkylä, Elina Berghäll, Ilkka Mellin
  • Aalto University, Department of Mathematics and Systems Analysis, Helsinki, Finland
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, Sami Miettinen, Jukka Ala-Peijari and Stefan Törnqvist


This article provides thoughts and guidelines on how a country could exit from the Economic and Monetary Union (EMU) and its currency the euro. We take the hypothetical exit of Finland as a concrete example. Although there is a way out of the euro for Finland and other member countries, exit would not be easy, nor would its short-term costs be known beforehand with any clear margin. We find the lack of a domestic payments system and uncertainty concerning the redenomination costs to be the biggest risks associated with the cost of Finland’s exit. Still, the costs of Finland’s exit need not be very large, around 10 billion euros in the best-case scenario, but we also acknowledge a very costly scenario for the exit.

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