Sweden open to Greek aid renegotiation

Economy | 2012-05-24
It may be time to renegotiate parts of the aid program to Greece, according to Swedish Finance Minister Anders Borg. But the Swedish government do not want any Eurobonds.

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"I think we're in a situation where Greece has not really been able to fulfill the agreements as they has pledged to do. Then it's always time for a review,” Anders Borg told reporters in the Riksdag today, according to news agency TT.

“We can conclude that it is probably more likely that they now has a substantially larger deficit than we previously thought,” he adds.

Yesterday Borg attended a meeting in Brussels with other representatives from the Conservative parliamentary party EPP, in the shadow of the EU summit.

The best thing for all parties would be if Greece could remain in the euro zone, Borg says. If there nevertheless would be an exit from the Euro, he believes that it primarily would hurt Greece. There would be a sharp drop in consumption, since imported goods will rise very sharply in price. Something that naturally would be hardest on those on low incomes since they could not compensate on the income side.

A clear Swedish no to Euro Bonds

The EU summit ended last night with no obvious results. But France's new president Francois Hollande was afterwards pleased to have brought up the Eurobonds on the agenda.

But EU leaders are very far from a common position.

“Some want them now or in the future, or as some pointed out, including myself, that we should not have them at all,” Sweden's Prime Minister Fredrik Reinfeldt concluded.

He, however, does not find it odd that there are calls for new, simple method of funding after several years of tough action.

“It's putting a strain on the population, it's putting a strain on decision makers, and whether there is any more energy available is put into question. It's natural, then, that there are discussions on whether you can find an instrument that gives our already troubled budgets expanding opportunities for investment,” Reinfeldt told TT.


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