07 October 2014

Hearing of Jyrki Katainen at European Parliament, 7 October 2014

Katainen provided MEPs with more details on the €300 billion investment plan, much of which he expects to come from the private sector and countries running a current account surplus. Comment by European Voice, FT and video.

European Voice: Katainen looks to shed austerity image

At his hearing before several European Parliament committees Jyrki Katainen, the vice-president designate for jobs, growth, investment and competitiveness, stressed above all that he was a man who would unite much more than he would divide. “I would like to build a common understanding so that [centre-right German MEP] Werner Langer and [centre-left Portuguese MEP] Elisa Ferreira can reach a common understanding.” Arguing was something for later, “if we have lots of time”.

Katainen, from the centre-right and a former prime minister of Finland, has his reasons: first, in order to win the support of what is a grand coalition within the European Parliament, he had to show that he is clearly above party squabbling; second, such a stance is more fitting for a vice-president, which is more of a management job within the Commission; third, and perhaps most importantly, Katainen was keen to shake his reputation as an arch austerity hawk. “Colleagues, to be frank, I do not recognise the way I have sometimes been portrayed,” he said, speaking in English almost throughout the hearing. “Finland is not the Wild West.”

The charges against him were best formulated by Elisa Ferreira. When in the Finnish government, “you assumed a moralistic stance that sinners had to atone for their sins,” she asserted. What solidarity was there in making Finland’s approval for the bail-out conditional on stricter conditions for recipients Portugal and Greece?

When Katainen eventually addressed the issue head-on, he sought to portray himself as a dove among Finnish hawks. “I was in favour of both packages, unlike some people in my country. As finance minister, I was convincing people in my country to accept the Portuguese bail-out package. It was highly unpopular.” Katainen recalled his time as Finland’s prime minister, when he led a complex six-party coalition government, which included politicians from across the political spectrum. He also pointed to the economic project that he was presenting, including a planned €300 billion investment plan.

Full article on European Voice (subscription required)

Financial Times: Incoming EU jobs and growth chief defends stance on austerity

The former Finnish prime minister tasked with restoring growth and employment to the EU sought on Tuesday to convince the European parliament he did not deserve his reputation as an arch advocate of austerity, insisting he backed new public spending to stimulate the bloc’s sluggish economy.

Jyrki Katainen, who has been nominated a vice-president for jobs and growth in the new European Commission, walked a fine line at his confirmation hearing, defending his advocacy of strict budget discipline during the eurozone crisis but arguing the EU’s most pressing challenge now was a lack of investment.

“I do not recognise the way I have sometimes been portrayed,” said Mr Katainen. “Finland is not the Wild West.”

The other prominent incoming EU economic commissioner, French Socialist Pierre Moscovici, faced criticism from centre-right MEPs at his confirmation hearing last week for allegedly backing fiscal laxity. The barbs aimed at the centre-right Mr Katainen came from the centre-left, in a sign the partisan fight on EU economic policy continues unabated.

© European Voice