The precautionary recapitalization approved by the European Commission on 4 July avoided the very serious consequences of a resolution procedure; it permits an € billion recapitalization, of which € billion injected by the State and € billion resulting from the conversion into shares of capital instruments subject to burden sharing.
The telecom industry, which is important for Finland's economy, experienced a strong boom-bust cycle around the turn of the century, and the exchange rate of the euro vis-à-vis the dollar, which is important for Finland's exports, first depreciated nearly 30% and then appreciated 50%. Moreover, the price of oil has multiplied during the existence of the euro.