• Sweden edition
Borg warns of 'likely' Greece default

Borg warns of 'likely' Greece default

Published: 05 Jul 2012 16:07 GMT+02:00
Updated: 05 Jul 2012 16:07 GMT+02:00

"The most probable outcome is that you end up with some kind of default in Greece," Borg said in an interview with Sveriges Radio (SR).

"Considering the way the situation has been handled so far, one cannot rule out that (Greece) will fall into bankruptcy in the end," he added.

Greek Prime Minister Antonis Samaras, who leads a new three-party coalition government, was meeting Thursday with auditors from the European Union, the International Monetary Fund and the European Central Bank in a bid to renegotiate his country's second bailout.

The Greek government is expected to promise creditors that it will redouble privatization efforts to show that it remains on a recovery path that will enable it to rejoin the world economy.

Borg stressed that even if the new Greek government manages to get an extension of payment deadlines and meets all its pledges, its target of a debt to gross domestic product ratio of 120 percent by 2020 remains too high.

"A 120 percent debt level is rarely sustainable, particularly not in a country with very weak growth prospects," Borg said.

The Swedish finance minister, whose country is not a member of the eurozone, meanwhile said it remained unclear if a default would necessarily push Greece out of the common currency bloc.

"Obviously, they only have harsh alternatives," he said.

"They could either do this by building up better prospects for the future inside the euro, or at the end of the day, they might choose to leave," he added.

AFP/The Local

Follow The Local on Twitter

Don't miss...X
Left Right

Your comments about this article

18:05 July 5, 2012 by Mb 65
Amazing how quick these politicians are.
23:06 July 5, 2012 by tixximmi
It will be Germany that leaves the Euro. Greece is doomed because they won't be able to cut spending. It's only a matter of time. The European Union can not spend their way to prosperity. www.survivalbasictraining.com has some other good articles on this topic. Other European countries will slowly pull back from the Euro.
23:27 July 5, 2012 by dizzy09
Thank you Borg for telling us something we already knew from listening to the BBC and the rest of them.If you are such a genius why not tell us how the current economic crisis in Europe can fixed.
08:42 July 6, 2012 by towns
@ Mb 65 & dizzy09

You'd think Borg is slow on the uptake, but he still admits more than Eurocrats like van Rompuy, Juncker, Merkel or Barros who'd like to pretend there isn't a problem with the eurozone if they could (they can't anymore).
14:58 July 9, 2012 by Marc the Texan
The Euro is finished. There is no saving it. Long past the point of no return as I've been saying for a long time. The longer the day of reckoning is put off the worse it will get, until it can be put off no longer.
Today's headlines
'The concept of race is a slippery slope': Ullenhag
Integration Minister Erik Ullenhag. Photo: Pontus Lundahl/TT

'The concept of race is a slippery slope': Ullenhag

Integration Minister Erik Ullenhag tells The Local why he plans to remove the term "race" from all Swedish law, how he responds to his critics, and why Sweden must steer clear of xenophobia. READ  

Sweden's tourism figures on the rise for 2014

Sweden's tourism figures on the rise for 2014

Tourism in Sweden is on the rise, with the first half of 2014 seeing a boom in visiting figures for both domestic and foreign tourists. READ  

Northern Dispatches
How I tackled northern Sweden's savage insects

How I tackled northern Sweden's savage insects

Ex-Londoner Paul Connolly has just survived a northern Sweden heat wave. But it wasn't the high temperatures that were the real problem, he recounts. READ  

What's On in Sweden - Pride Parade

What's On in Sweden - Pride Parade

Saturday marks the Stockholm Pride Parade, the biggest event of Pride Week (and the biggest Pride Parade in Scandinavia). Here's what to see and where to be, as well as plenty of other activities in Sweden's three biggest cities for the weekend. READ  

Railway fatalaties on the rise in Sweden
File photo: Carl Dougge/Flickr

Railway fatalaties on the rise in Sweden

Even though Sweden's Traffic Agency has drastic plans to reduce the number of people killed by trains in Sweden, a new report shows that figures are on the rise. READ  

Woman finds Ikea bags stuffed with 80 skeletons

Woman finds Ikea bags stuffed with 80 skeletons

UPDATED: A woman in southern Sweden is furious after stumbling upon scores of skulls and human bones inside Ikea bags in a church. The man who dug up the bones, however, says it's not as bad as it looks. READ  

Swedish Wikipedia jumps to second biggest

Swedish Wikipedia jumps to second biggest

There are now more Swedish Wikipedia entries than any other language in the world, besides English. And there's one Swede who's largely responsible. READ  

Assault with iron pipe 'no hate crime': police
The aftermath of the attack in Seved, Malmö on July 6th 2014. Drago Prvulovic / TT

Assault with iron pipe 'no hate crime': police

Police in southern Sweden have concluded that a man who was beaten with an iron pipe for hanging an Israeli flag in his window was not a victim of a hate crime. READ  

AstraZeneca hikes earnings outlook
Photo: Claus Gertsen/TT

AstraZeneca hikes earnings outlook

After fighting off a fierce takeover bid from Pfizer, Swedish-British drugmaker AstraZeneca raised its 2014 earnings outlook and posted rising second quarter sales on Thursday. READ  

Race to be scrapped from Swedish legislation
Integration Minister Erik Ullenhag meets children in Husby, Stockholm. Photo: Jonas Ekströmer/TT

Race to be scrapped from Swedish legislation

The Swedish government announced that it plans to remove all mentions of race from Swedish legislation, saying that race is a social construct which should not be encouraged in law. READ  

Stockholm demonstration against Israel
Stockholm Pride bars Sweden Democrats
Gender neutral pronoun 'hen' enters dictionary
Top ten cafes in Stockholm
People-watching - Stockholm Pride
Blog updates

31 July

Calling a speedo a speedo (Blogweiser) »

"There are a lot of speedos on Europe’s beaches. Some European males are evidently more comfortable sporting small, stretchy suits on public beaches than I would be. I accept it may be nice to have swimwear that’s not long and cumbersome. A speedo is maybe also good for tanning. But strolling around town in a..." READ »


27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

Photo: Henrik Trygg/Imagebank Sweden
Sweden worst in EU at getting foreigners jobs
Stockholm Pride kicks off
The top six ways the US and Sweden differ
Swedish youth suicides hit 25-year high
Politician reported for selling 'negro ball'
Police turn blind eye to Swedish 'slave trade'
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Sponsored Article
Introducing... ID cards and permits in Stockholm
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Top ten Swedish taboos
Seven-year-old Swede cycles to Berlin
'Gaza conflict needs help, not empty rhetoric'
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
Swedish organic sales enjoy 'amazing' growth
People-watching July 23
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
People-watching Båstad
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
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

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:
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.
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: