• Sweden edition
 
Top Swedish execs less keen on the euro
Nordea CEO Christian Clausen

Top Swedish execs less keen on the euro

Published: 27 Dec 2010 16:00 GMT+01:00
Updated: 27 Dec 2010 16:00 GMT+01:00

The euro faced its toughest challenges yet in 2010 with debt-ridden members Greece and Ireland forcing other euro and EU countries to come to the rescue with a massive loan package, newspaper Svenska Dagbladet reported on Monday.

"It is maybe more important for large countries like England to take a position and join so that it becomes a more stable area. It is not good with an unstable currency area," Ericsson Chairman Michael Treschow told the newspaper on Monday.

Treschow underlined however that in the longer term he still believed that Sweden would gain from having a currency that followed "more stable" rules.

As the 16-member currency prepares to welcome its newest member, Estonia, on January 1st, the debt crisis in the eurozone this year has deterred many who were previously positive to Sweden joining the euro.

Many economists believe that the crisis has proved that monetary union is not optimal and predict that poor countries may be forced to leave, the report said.

At the same time, the Swedish economy has rocketed past eurozone growth rates. While Finance Minister Anders Borg has insisted that Sweden would have done well even with the euro as currency, he has not been as proactive as Liberal Party leader Jan Björklund in pushing for a new euro referendum, SvD reported.

Sweden voted against 56.1 percent a 2003 referendum that would have determined accession on January 1st, 2006.

Swedish business leaders do not have a Swedish euro accession on their minds at the moment, with Nordea CEO Christian Clausen stating that Swedish support does not seem to be of immediate importance.

"A new referendum would probably result in a very clear answer from the people," Clausen, a native of Denmark, told SvD.

He added that there is no clear answer as to whether Sweden would be better off in joining the eurozone.

"If one joins the eurozone, there might be a little more leeway - for example, having a slightly larger deficit. However, the problem is that some countries gave themselves too much space," cautioned Clausen.

SEB CEO Annika Falkengren agreed.

"The crises this year show that one must have a tight fiscal policy given that one does not have the interest rate weapon the same way countries outside the euro do. Sweden has shown that it has fared very well on its own merits on the outside," she said earlier this year.

However, Swedish business leaders remain confident that the euro will survive in the long term.

"Some countries may possibly be forced to leave, but on the whole, it will stay together. I am European and I believe in the project. We live in an open democracy and it takes a bit longer to implement things," Atlas Copco CEO Ronnie Leten, a native of Belgium, told SvD.

"The euro and the dollar are the world's two reserve currencies and there is no doubt that the euro will survive. The question is how long it will take to solve these acute problems," added Clausen.

The Local/vt (news@thelocal.se)

Your comments about this article

20:39 December 27, 2010 by lux.veritas
Madame La Guillotine for the thirteen banking families. Those behind the private banks, central banks, for their debt based worthless currencies. Printed out of thin air at no loss to the banks + interest a debt based tax robbery that assures poverty, suffering and wealth transfer to these evil criminals. For if nothing is done by owned politicians and corporations; they will take the very roofs from over our heads and food out of the mouths of our children. youtube search Zeitgeist Addendum: Find out how the top people behind the banksters and their puppets in state and corporation act with their economic terrorism, assasinations, corruption.
00:18 December 28, 2010 by Thebinary1
I think its time to fire Annika Falkengren and Christian Clausen for their incompetence!

"The crises this year show that one must have a tight fiscal policy given that one does not have the interest rate weapon the same way countries outside the euro do." .... so it is Annika's view that in the long-term, interest rates are a redundant monetory weapon for individual Euro countries since that country surrenders its economic fate to the Brussels!

"The question is how long it will take to solve these acute problems." .... well Clausen .... here's the thing. In the immediate future, the Eurozone will fracture into a two-speed zone. We will have Germany powering away prompting the need for higher interest rates as inflation brought on by a growth spurt, rises. In stark contrast we have Spain, Greece and Ireland with massive debt, unemployment , and a deflating economy prompting the need for lower interest rates to stimulate growth.

So unless the Germans feel all charitable and gives money away to Ireland, Greece and Spain, or unless the Germans start buying actual chunks of Irish and Spanish territory ... there is no long term solution. Note that the former seem more likely as the bailouts given to Ireland, Greece and Spain being written off is Germany being charitable. The assumption ofcourse is that Ireland, Greece and Spain use the money wisely .... which does NOT seem likely and hence why the ECB attaches conditions on the bailouts they have given to Ireland and Greece so far.

That's the long-term outlook for the Eurozone.

So yeah, Annika ... Christian ... don't bother to come to work anymore.
09:12 December 28, 2010 by Kevin Harris
"there is no doubt that the euro will survive." Nordea CEO Christian Clausen

There is considerable doubt wheteher the Euro will survive; even amongst its most ardent supporters. If Cristian Clausen has bet the Nordea farm on the Euro being around in the next ten years, Nordea shareholders may be in for a difficult time.
11:19 December 28, 2010 by zircon
The more interesting days of Swedish ambitions to join the Euro or not are over. Over the last decade we have seen no particular new thing coming from the Swedes in power on the subject. Since Anna Lindh has died nothing else happened on this front. She was as great as McNamara.
16:46 December 28, 2010 by Syftfel
Treschow is right! If joining the Euro means that we have to bail out third world sink holes in southern Europe, please save us. These lazy southern rim cesspools need to be taught a lesson and live within their means, and not expect us to bail them out. Don't join the Euro! And while we're at it, take a look at the Schengen Agreement too. This appears to have a destructive impact on Nordic cohesion and uniformity.
01:13 January 3, 2011 by mkvgtired
"It is maybe more important for large countries like England to take a position and join so that it becomes a more stable area. It is not good with an unstable currency area,"

And I'm sure the UK is very happy at the moment it did not join the Euro, despite the fact it has given considerable funds to bail out the troubling nations. The German Mark was by far the most held reserve currency behind the USD before the Euro was introduced. By joining (or one could say forming) the Euro Germany succeeded in diluting its own currency's strength by spreading it to the entire Eurozone. Considering the very favorable position of the German Mark I am very surprised Germany pushed so hard for the creation of the Euro.
17:19 January 4, 2011 by landofthesheeple
How can Sweden be part of the EU, but not have the Euro as currancy?

It would be like getting partial circumcision : ) lol

As to no surprise however, it's just like the typical Swedish relationship. The couple live together and have kids, but never get married (save that one for another topic).

BTW- Wasn't Sweden already bailing out third world countries by relocating their inhabitants here?

No wonder this country is going down the chocolate river with out toilet paper. No one has here has the courage to make rational decisions one way or the other.

Sheesh !
Today's headlines
Sport
Sweden's star striker Zlatan 'recovering well'
Zlatan Ibrahimovic is Sweden's top scorer in history. PHOTO: TT/Maja Suslin

Sweden's star striker Zlatan 'recovering well'

Zlatan Ibrahimovic is recovering well from the nagging heel problem that has stopped him playing for Sweden during its Euro 2016 qualifying campaign. READ  

International
Swedish sisters create viral Syria stir
A shot from the video on YouTube.

Swedish sisters create viral Syria stir

Two sisters from Södertälje near Stockholm are celebrating getting more than 1.3 million hits on YouTube, with a video calling for peace in war-torn Syria. READ  

Pirate Bay
Pirate Bay founder gets three years in prison
A 2013 image of Svartholm Warg. Photo: TT

Pirate Bay founder gets three years in prison

Swedish "hactivist" Gottfrid Svartholm Warg has been sentenced to three-and-a-half years in prison for hacking crimes. READ  

Royal family
Princess Madeleine to make Nobel comeback
Princess Madeleine at a previous Nobel banquet. Photo: TT

Princess Madeleine to make Nobel comeback

Sweden's Princess Madeleine is scheduled to appear at the Nobel Festival in Stockholm in December, after taking time out from her royal duties to focus on looking after her daughter. READ  

Politics
'We knew that Israel would be critical'
Foreign Minister Margot Wallström (left), with Sweden's Prime Minister Stefan Löfven. Photo: TT

'We knew that Israel would be critical'

Sweden's Foreign Minister has told The Local she respects Israel's decision to recall its ambassador after Sweden officially recognized the State of Palestine, and laughed off comments about IKEA furniture made by her Israeli counterpart. READ  

Analysis
'Store up your sunlight hours before winter'
Doctors say we should make the most of the autumn sunshine. Photo: Shutterstock

'Store up your sunlight hours before winter'

Spending time outdoors this autumn will help you survive a cold, dark Swedish winter. Baba Pendse, Head of Psychiatry at Lund University shares his top tips for battling the seasonal blues with The Local. READ  

Sports
Plot for shared Scandi Winter Olympic bid
Skiers hit the slopes in Åre, western Sweden. Photo: TT

Plot for shared Scandi Winter Olympic bid

Norwegian sports officials have said they want to co-host the winter Olympics with Sweden in 2026. But there has so far been no official response from Sweden. READ  

National
Anti-Israel graffiti 'not a race crime': Court
Photo: TT

Anti-Israel graffiti 'not a race crime': Court

A teenage boy who painted anti-Israel slogans and symbols on the Concert Hall in Gothenburg has been convicted for the damages he caused, but he walked free from racial agitation charges. READ  

Entertainment
A closer look at Sweden's rising stars
Swedish actresses Sandra Huldt and Julia Ragnarsson. Julia (right) has been nominated for a Rising Star award. Photo: TT

A closer look at Sweden's rising stars

Like to be ahead of the game when it comes to the next big thing on the silver screen? We find out more about the Swedish nominees for the Rising Star award to be presented at Stockholm's International Film Festival next week. READ  

Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
Stockholm's shocking take on Halloween
Sport
Top ten quotes from Zlatan Ibrahimovic
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
Blog updates

31 October

Editor’s Blog, October 31st (The Local Sweden) »

"Hello readers, Welcome to our latest 60-second round-up of the week’s news. First, Sweden made headlines around the..." READ »

 

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 
 
 
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

982
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN