The Finnish export industry is keeping a close eye on the Swedish euro debate. The Finnish industrial sector would benefit if Swedes voted yes to the euro in the forthcoming referendum, as this would eliminate exchange rate risks arising from the fluctuation of the krona.
However, Finnish industry is not indifferent towards the rate at which the krona would be fixed to the euro. Over the past three years, one euro has bought around 8-10 SEK, and at the moment, the exchange rate is at SEK 9.2 to the euro.
The value of the euro has a direct effect on the relative competitiveness of Finnish and Swedish companies. With a weak krona, Swedish exporters can offer lower euro prices, and still be able to afford their normal level of krona-denominated expenses.
