Finnish Government won't buy Nokia stock to help the company

Finnish Government won't buy Nokia stock to help the company
Finnish Nokia once accounted for 4% of its home nation’s GDP and kept Finnish national pride high, but with these troubled transitional times the company’s entered, a public debate started in the small Nordic country whether the Finnish government should give a helping hand and buy Nokia shares.

Those hopes however were quickly dashed when Prime Minister Jyrki Katainen said the government is not considering buying Nokia shares.

"This is not our business. We are developing Finland into a country where companies can do well, but this is not the way of support along which the government will go," Katainen explained on a visit in Salo, Finland. The city is home to a large Nokia manufacturing plant that the company plans to close.

The debate about the Finnish government and Nokia was also fueled by the fact that the country already holds shares in some companies it considers important for the national interest like air carrier Finnair and energy company Fortum.

Nokia’s declining exports however are hurting not only the company, but the state as well. Right now it makes up less than one 1% of Finland’s GDP, but Finland still remains one of the few triple-A rated countries in Europe.

source: Reuters

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16 Comments

1. JSern

Posts: 282; Member since: May 22, 2011

Victor H. wrote this? lol moving on

2. groupsacc

Posts: 232; Member since: Feb 28, 2012

What's your problem?

3. RoundBallmer

Posts: 43; Member since: Jun 19, 2012

Victor's a typical anti Nokia/MS guy.

4. homeedition88

Posts: 10; Member since: Jun 16, 2012

Right decision. At the end it is nokia's own mistake. M.s almost rules the company and they are using a Nokia maps infrastructure (and marketing strategy blabla) and they did not give a penny. They just install a Trojan in to the Nokia :)))

8. cepcamba

Posts: 717; Member since: Feb 27, 2012

MS is giving Nokia more than a billion per year.

10. kindlefireowner

Posts: 504; Member since: Dec 05, 2011

Dude. You have no clue of what you are talking about.

11. homeedition88

Posts: 10; Member since: Jun 16, 2012

That billion is goes for marketing and devices which are give away for free.

5. Veigald

Posts: 290; Member since: Jan 13, 2012

Of course a government shouldn't bail out a company, unless it's a big bank with overpaid, greedy, ruthless bankers that need money to maintain their life styles. But seriously, this is not the Finnish government's responsbility. Also, Nokia didn't ask for this, which is important to point out.

6. smartphone

Posts: 160; Member since: Oct 21, 2011

Ok don't buy the stocks but sure they can help in many ways. They can provide low interest loan, increase some subsidy etc after all once Nokia puts Finland on many people maps.

7. mercorp

Posts: 1045; Member since: Jan 28, 2012

because they love iphones and androids. (Not trying to be biased)

9. Johnnokia

Posts: 1158; Member since: May 27, 2012

Nokia = Finland's flagship. The Finnish government should support Nokia like what the US government did with General Motors.

12. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

Hmm, what the hell? No good news for Nokia, is this company imploding on itself? Soon it will be selling off it's assets. Then the vultures will start circling the carcass, how in the hell did the worlds largest phone maker lose it's way in such a short time? This is like some celebrity who hits the substance and lose it all in 5 years. Poor Nokia.

13. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

F*** STEVEN ELOP BIG TIME WHEN IS THE BOARD WAKE UP AND REALISE THAT STEVEN ELOP NEEDS TO LEAVE SYMBIAN AND MEEGO NEED TO COME BACK IN PRODUCTION ALONG SIDE WITH WP8

14. RoundBallmer

Posts: 43; Member since: Jun 19, 2012

LOOLOLOL TRROLL

15. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

looks like Microsoft will have to loan Nokia billions to stay afloat or buy it out right they will have see which is cheaper for them to do and what will be the long run effects on Microsoft and it's OEM partners and the smart phone Market

16. Sangeet

Posts: 232; Member since: Apr 21, 2012

With the new Windows Phone 8 Nokia is surely gonna win with flying colors as now Windows Phone 8 looks like somewhat a mature OS

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