• Sweden edition
 
Swedish bank predicts Greek eurozone exit

Swedish bank predicts Greek eurozone exit

Published: 15 Jun 2012 15:33 GMT+02:00
Updated: 15 Jun 2012 15:33 GMT+02:00

Swedish bank SEB wrote in a newsletter on Friday morning that everything points to Greece leaving the eurozone ”within the immediate future” regardless of the results in Sunday’s general election.

The bank also said it would not be surprised if there will be new rules issued to stem uncontrolled capital flows.

Despite these predictions the bank also said that the focus on Greece is somewhat exaggerated. Governments, central banks and other agents are, according to SEB, ready to handle a controlled Greek exit.

However, Swedish minister for finance, Anders Borg, expressed his continuing concerned about Sunday’s election in Greece and what consequences the outcome will have.

"In a best case scenario we will have a very serious situation come Monday," said Borg to news agency TT.

He was unwilling to answer what the worst case scenario would entail. However, he said that the situation is unlikely to be settled by Monday.

”This is a process which will drag out for months. If this results in Greece being out of funds or if they choose to make decisions regarding their relationship to the euro, remains to be seen,” Borg said.

The repercussions of the Greek crisis on other European economies are hard to predict, according to Borg.

“We will, together with the Riksbank, the National Debt Office (Riksgäldskontoret) and the Financial Supervisory Authority (Finansinspektionen), follow these developments very closely. But we don’t judge it will necessarily have serious consequences for the entire European economy, for the world economy or for Sweden,” said Borg to TT.

TT/The Local/rm

twitter.com/thelocalsweden

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

16:57 June 15, 2012 by Abe L
The sooner they exit the better. Any efforts to keep them within the Eurozone would just be postponing the inevitable and would just keep harming the EU over a longer period of time. Kick them out, suck up the blow and move on and be much more critical next time someone applies for Euro membership.
23:51 June 15, 2012 by HelmiVainikka
It's better to make a painful break than draw out the agony.
10:50 June 16, 2012 by Marc the Texan
It's too late now. Everyone will be exiting the Euro.
13:03 June 16, 2012 by riose
@Marc the Texan

Or they will start pinting notes, like UK did, devaluating their currency a 30% in one year.

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=Linear&chdeh=0&chfdeh=0&chdet=1339844467213&chddm=3063058&q=CURRENCY:GBPEUR&ntsp=0
21:46 June 16, 2012 by B Slick
The exit of Greece from the eurozone would be a boost for the euro money and that just what the euro needs right now at this time. The eurozone should only be for countries that can control their finances, its just that simple. The eurozone and the euro money should be about quality NOT quantity!
18:48 June 17, 2012 by towns
Even if SYRIZA becomes the largest party in the Greek parliament tonight, they'll fall short of a majority, meaning they have to form a coalition. No other major party supports the "leave the Euro" platform, therefore if they want to form a successful coalition they'll have to compromise. The only way they can do this is to stay in the eurozone and attempt to "renegotiate" the conditions of their bailout with the other eurozone nations. I can guarantee that Finland and very likely Germany won't agree to "renegotiate" so the Greeks are going to be back to where they started all over again. This is all going to be "all blow and no show" and will just keep the Greek economy in recession (more like depression by this point) for another few years, unfortunately, as I see no long term solution coming on the table right now.
Today's headlines
Three rescued after cruise ship sinks boat
Rickard Rundgren Björk of the coastguard services speaks to the media after the rescue operation on April 19th 2014. Photo: Maja Suslin /TT

Three rescued after cruise ship sinks boat

Three Saturday morning sailors had a lucky escape after their small boat collided and sank after it crashed into a cruise ship whilst sailing in the Stockholm archipelago. READ () »

Missing Swede found alive and well in UK
Sofie Marie Jansson. Photo: Metropolitan Police

Missing Swede found alive and well in UK

British police have found the missing Swedish girl Sofie Jansson in London, exactly a week after she was last seen, with authorities saying she is doing well. READ () »

Social Democrats make tax pledge to elderly

Social Democrats make tax pledge to elderly

Sweden's opposition party have stepped up its efforts to secure the pensioner vote by pledging to lower taxes for the elderly and make higher earners pay more. READ () »

Malmö Nazi attack victim on the mend
Showan Shattak pictured in Malmö before his attack. Photo: Facebook

Malmö Nazi attack victim on the mend

The 25-year-old man, whose stabbing by neo-Nazis sparked mass demonstrations across Sweden, has made a strong recovery in hospital and took to social media to thank supporters for campaigning against fascism. READ () »

Police seeking missing Swede in London

British police have issued a plea for tips in the search to find Swedish national Sofie Marie Jansson who hasn't been seen for almost a week. READ () »

University applications rocket to record high

University applications rocket to record high

Swedish universities continue to draw vast amounts of applicants with the number of prospective students seeking a third level education increasing for the seventh year in a row. READ () »

Man jailed in US over Lars Vilks murder plot
Swedish artist Lars Vilks pictured in New York in 2012. Photo: Linus Sundahl-Djerf/TT

Man jailed in US over Lars Vilks murder plot

American authorities have sentenced a 20-year-old accomplice of 'Jihad Jane' to five years in prison for an attempted terror plot to kill Swedish artist Lars Vilks, after getting involved with the murder plans when he was a teenager. READ () »

Sweden scraps 'new start zones' after EU input
Integration Minister Erik Ullenhag visits a school in Tensta, one of the neighbourhoods mentioned when he and his colleagues first floated the new start zone proposal. File: TT

Sweden scraps 'new start zones' after EU input

Sweden has abandoned a plan to ease taxes for small companies in blighted areas after the European Commission challenged its legality. READ () »

'Easter eggs an invitation to spread germs'
A typical Swedish Easter egg. Photo: Jessica Gow/TT

'Easter eggs an invitation to spread germs'

A Swedish microbiologist has warned that traditional Swedish Easter eggs laden with candy are an open invitation to the spread of bacteria and viruses. "Is this really a good idea?" he asked. READ () »

Jammed truck snarls Stockholm rush hour
Photo: Anders Wiklund/TT

Jammed truck snarls Stockholm rush hour

PICTURES: A truck got wedged inside a tunnel in central Stockholm on Thursday, with authorities concerned the accident may have damaged cables in the tunnel's ceiling. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Swedish supermarket Ica pulls contested Easter commercial off air
Kungahuset
Society
Swedish royals set baptism date for princess
finest.se
Gallery
People-watching April 16
Politics
Who's the prime minister's heir?
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Advertisement:
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
TT
Politics
Swedes to give six-hour workday a go
TT
Society
Aussie choir member wows Abba in Sweden
YouTube
Society
Stockholm magic a surprise YouTube hit
Fastighetsbyrån
Society
Gallery: The Local's Property of the Week
Private
Society
Swedes find 200-year-old gravestone in living room
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Deepti Vashisht
Features
Deepti Vashisht dissects the magic of Sweden's personal ID number
Shutterstock
Society
Ten signs you've been in Sweden too long
Society
Jimi Fritze heard every word when doctors discussed taking his organs
Society
A Swedish farmer explains why the new bestiality ban is 'pointless'
ESL
Sponsored Article
Learning Swedish the easy way
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 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

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

744
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