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Borg: Greek budget plan could 'fall off the rails'

Borg: Greek budget plan could 'fall off the rails'

Published: 04 Oct 2011 10:48 GMT+02:00
Updated: 04 Oct 2011 10:48 GMT+02:00

Sweden's finance minister Anders Borg warned on Tuesday that Greece is at risk of missing budget targets demanded by international lenders in return for bailout funds.

"It is quite clear that there is an evident risk that the Greek programme is off track," Anders Borg told reporters as he arrived for a meeting of European Union finance ministers.

The Greek debt crisis tops the agenda at the meeting of the Economic and Financial Affairs Council (Ecofin) meeting of EU finance ministers.

"With a debt level of 160-170 of GDP there is a significant risk that it falls off the rails," Borg said of Greece's latest budget forecasts for 2011-2012.

Borg called for action to ensure that the situation is managed effectively.

"We have to rethink how we can move faster forward towards backstops and firewalls to handle the situation," he said amid fears Greece is heading towards a default that could devastate the eurozone.

He said banks may have to be recapitalised to cope with the crisis and underlined the importance of having funds available if a move of this kind would become necessary.

The day before, eurozone finance ministers put off a decision on releasing the next installment of bailout funds to Greece, saying Athens can wait until November.

TT/AFP/The Local (news@thelocal.se)

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Your comments about this article

11:32 October 4, 2011 by Nemesis
A suggestion for Borg. Stop your banks playing games in Sweden and then use that example to get other countries to stop playing games.

Then tell the Greek people to actually pay tax. I know the concept of paying tax instead of getting money from other Europeans is totally alien to Greeks, but i am sure you could explain it to them.
11:42 October 4, 2011 by just a question
Hej Borg,

In this country you are doing the same, speculating with houses and playing monopoli, privatizing everything and welcoming multinationals. And still telling people what to do?

One thing is true, Greek people is paying a lot of taxes now, maybe too many. In a crisis, always poor people pay.

Do you know the European country where citizens pay more taxes in Europe? Surprise, it's Spain.
11:54 October 4, 2011 by Mib
@just a question - Sweden's property market is different from the "buy to let" speculators in Spain, UK and Ireland etc. Rental rules, hosuing association rules etc make it very difficult for anyone to speculate in the Swedish market. The housing market is of course outside these rules, but most people in Sweden live in apartments. And if you have read the press recently, property prices in general are going down, while a 15% minimum deposit rule was brought in.

This Government has not privatised much yet! They made the sensible decision to not sell while markets are so volatile and reduce getting the best price. In any event, the money generated by thee sales are to be used to reduce employers tax that they pay for each employee....which in turn means they can afford to employ more people.

The Greek Government lied to the EU and the EU did not perform due diligence on countries joining the group. Their incompetence hs now put everyone at risk. Greece's only way out previously was to devalue their currency, which is no longer availabel to them....now their people are paying the price for accepting a corrupt system....was anyone complaining when things appeared good in Greece? Not many I presume!

You say Sweden has been specualting......but its the German an French banks that have speculated on Greece and will lose heavily as a result.
12:09 October 4, 2011 by just a question
Like if the rest of European governments and banks didn't know from the beginning that they were lending money to corrupted countries. The problem is that then everybody was making business, everybody ignored corruption. How many formal complains of citizens about town plannings are acumulated in the courts of Brussels? But that was not interesting, banks were busy making money from politicians of corrupted countries and from debt. So who pay now? not the politicians or banks of course, but the citizens.
12:20 October 4, 2011 by skumdum
@Mib

Most people in Sweden do not live in apartments. That's not true. A majority of the people live in houses.
14:47 October 4, 2011 by Great Scott
@skumdum

"Most people in Sweden do not live in apartments."

Then that must = most people live in houses!

"That's not true."

Then that must = most people live in apartments.

So how do the majority of the people live in houses?
18:14 October 4, 2011 by just a question
The EU was impossed by the governments in some countries without votations whatsoever. Why should we pay for the stupidity of our politicians?

I'm talking about taxes and indirect taxes. If you count that, you will have a surprise. And I'm not taking my data from any Al-Obam, I'm Catholic.
19:16 October 4, 2011 by ?????
I hope that most of you know that the money that Greece gets is a LOAN and not a free gift, meaning that Greece will have to pay them back with interest! that said, I don't think that there's someone so naive to believe that goverments and banks that were lending money to Greece didn't have an idea of the corruption there. Secret services even know who's gonna be the president of Greece in 10 years from now. They just used this corruption to sell their technology, defence systems or whatever they could. Now that Greece is gonna be bankrupt let's see what the banks will say about Ireland, Spain, Italy, etc who will be next.
22:02 October 4, 2011 by Imperor
Marilyn: The maximum tax, which is only paid on the portion of the wage exceeding the limit, not the entire wage, says nothing about the total taxes. On top of that you have to account for sales taxes and so on.

The main problem is that they are trying to solve a crisis by doing more of the things that brought it on in the first place! Saving has NEVER strengthened an economy, spending is always what it comes down to!
14:00 October 5, 2011 by Marc the Texan
MARILYNVOSSAVANT, your comments read like they were posted by THE Marilyn vos Savant.
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