• Sweden edition
 
'Euro crisis will worsen before improving': Borg

'Euro crisis will worsen before improving': Borg

Published: 09 Sep 2012 09:30 GMT+02:00
Updated: 09 Sep 2012 09:30 GMT+02:00

"I don't think we've seen the worst yet in countries like Spain and Greece. They have such serious problems that Europe is going to be in a very difficult position during the next six to 12 months," Borg told public broadcaster Swedish Radio.

The Swedish finance minister, whose country is not a member of the eurozone, said he would not be surprised if Athens had to leave the 17-member euro bloc in the foreseeable future.

He stressed that while there was "much support" for the country in Europe, "we can't rule out the possibility that Greece will end up in a situation where it in practice leaves the euro in six, nine or 12 months."

Borg said he wasn't "sure how much we should dramatise" such a scenario.

"Banks in Europe are prepared for problems with Greece," he said, all the while acknowledging that "it could get a lot messier in Europe."

He said Athens had to ensure that its reforms were implemented and noted that political will was not the problem. Instead, reforms passed by parliament were not trickling down to authorities and being implemented as they should.

Borg was also of the opinion that Spain may need a bailout, saying there was "great uncertainty about how its regions are managing their public finances."

"I don't think you can rule out that ways will have to be found to help Spain," he said of the eurozone's fourth largest economy.

AFP/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

14:23 September 9, 2012 by ubulord
The Euro Crisis Explained To Grannies: For a very simple (and funny) explanation for the euro crisis, just write on your search engine: wordpress blog The euro crisis explained to grannies
16:45 September 9, 2012 by Abe L
It's in everyone's interest to get this over with as fast as possible. Remove Greece instantly from the Euro and if the situation worsens in Spain to, do not hesitate and get rid of them to. The longer you wait, the further down they will drag everyone along with them.

These countries could make a very good re-start as cheap vacation destinations. They will benefit from the additional tourism and it would provide a means to rebuild. Europe has over the course of time slowly ran out of such places and everyone can benefit from this.
21:42 September 9, 2012 by B Slick
Greece leaving the euro zone would be a big plus for the other euro zone countries and the euro money. And if Spain does not get its act together fast they should also leave the euro zone. Smoke and mirrors economies just wont work any more!
09:35 September 10, 2012 by captainkanga
doesnt anyone know what going on?

greece has more oil gas and natural resources in rare materials than most of its EU members..there is so much oil and gas in there waters than almost norway they say. why do u think the "cyprus-turkey" crisis is ongoing? when the USA supported the greek invasion "kissinger" the then US president found out these aegean water had an abundance of oil..now RUSSIA a greek ALLIE will build the gas and oil pipes to greece..the GERMANS want greece to take on DEBT so large that they cannot replay the LOAN..so what happens when this occurs ?? They reposses your most valueble assets...wink wink..(natural resources)..its the biggest corruption since 9/11..but this has been going on for 30yrs or so..
13:12 September 12, 2012 by Marc the Texan
The Euro is going to fail. It's no secret. If Greece leaves, then the weak Euro players will be under even greater pressure and capital flight will continue to increase. I can't believe this charade has gone on this long. Southern Europe's finances have been entirely hollowed out, and the situation continues to degrade. The longer this goes on, the worse the eventual break up will be. There is no saving the Euro, just do your best to keep clear.
Today's headlines
Elections 2014
'Sweden Democrats hold the key to elections'
Jimmie Åkesson. Photo: Bertil Ericson/TT

'Sweden Democrats hold the key to elections'

With national elections around the corner, political scientist Stig-Björn Ljunggren says there's a hive of activity behind the scenes, and that the right-wing nationalist party could end up being the key player. READ  

Swedish artist jailed for 'race hate' pictures
Police arrested Dan Park (pictured) and confiscated his art works at an exhibition opening on July 5th. Photo: Drago Prvulovic/TT

Swedish artist jailed for 'race hate' pictures

A Malmö court has sentenced Swedish street artist Dan Park to six months in jail for incitement to racial agitation and defamation. READ  

Sweden Floods
Flooding closes roads in central Sweden
Photo: TT

Flooding closes roads in central Sweden

UPDATED: Sections of the highway in Värmland have been closed off due to flooding, and several trains are standing still. Authorities say the situation will get worse before it gets better. READ  

Elections 2014
Sweden elections: How do they work?
Casting a vote. Photo: Shutterstock

Sweden elections: How do they work?

National, regional, and local elections are taking place in Sweden on September 14th. Whether you're a first-time voter or a fresh armchair observer, The Local's beginners' guide will answer the key questions you were too afraid to ask. READ  

Sweden orders textbook on Roma discrimination
A Romani language class in Malmö. Photo: Drago Prvulovic/TT

Sweden orders textbook on Roma discrimination

The Swedish government has asked a new commission to create school materials based on a white paper documenting Swedish discrimination of Roma. READ  

Day-care rapist
Day-care rape suspect 'was mentally ill'
Photo: TT

Day-care rape suspect 'was mentally ill'

Social services have ruled that a day-care intern charged with molesting 14 children in southern Sweden was "seriously mentally disturbed". READ  

What's On in Sweden

What's On in Sweden

Autumn has arrived in Sweden, which means grey skies are approaching. But summer goes out with a skip, hop, and a bang - the annual Color Run is taking place in Stockholm this weekend. READ  

Surströmmingspremiär
Swedes celebrate first day of smelly fish season
Photo: Hasse Holmberg/TT

Swedes celebrate first day of smelly fish season

On the third Thursday of each August, Swedes celebrate the start of the fermented herring season. The Local finds out more about the worst-smelling food on earth, and collects some of the best reaction videos. READ  

Spotify founders win 'Expats of the Year'
Crown Princess Victoria and Spotify co-founder Martin Lorentzon Photo: Fredrik Sandberg/TT

Spotify founders win 'Expats of the Year'

Spotify founders Martin Lorentzon and Daniel Ek won the International Swede of the Year award (Årets svensk i världen) on Wednesday for their work in making the world's music accessible to the world. READ  

Top ministers count cost of 'less secure world'
Photo: Maja Suslin/TT

Top ministers count cost of 'less secure world'

Foreign and Finance Ministers Carl Bildt and Anders Borg held a press conference on Wednesday to discuss how Sweden was being affected by a "less secure" world, and how it would foot the bill for a growing influx of refugees. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Politics
"Iraq reminds me of the Yugoslav wars. It's the same story."
Society
Swedes slam Danes for 'racist' art
National
Majority of Swedes favour more or just as many refugees
Blog updates

17 August

Sea Fever (Around Sweden in a kayak) »

"I’m going to keep this post short and sweet as its not something I take any pleasure in writing. After much deliberation I have made the heartbreaking decision to abandon my trip after 1200km due to reoccurring injury. It is not a decision I have made lightly and it is one that has been truly devastating..." READ »

 

17 August

St. Louis strong (Blogweiser) »

"It’s typically a bad sign when my hometown makes news in Sweden. St. Louis was in the headlines here a few years ago when a tornado struck the airport. The city also caught attention after a politician talked about ‘legitimate rape’. Now, shooting and riots this week in Ferguson, a part of St. Louis, are..." READ »

 
 
 
Society
Lock your bathrooms: Swedish toilet invader on the the loose
Politics
'Assange will not leave until safe'
Gallery
See more images from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Society
Serial chicken smuggler caught at Norway border. Again.
Society
This gold coin may be the key to solving a Swedish massacre
Shutterstock
Lifestyle
The Swedish mentor (and why you may need one)
National
Food agency warns girls: 'Don't eat stinky fish'
Politics
Reinfeldt calls for tolerance to refugees
Gallery
People-watching August 16-17
National
Sweden celebrates 200 years of peace
Society
Top ten literal Swedish words
Politics
'Terror training should be illegal': Liberal Party
Gallery
Swedes talk about 200 years of national peace
Politics
Islamic extremist shakes Sweden with TV threat
National
Teacher fined for 'Hitler salute' in German class
National
Swede asks for epidural and gets disinfectant
Features
Kiruna residents talk life in a town on the move
National
Swedish dad takes kids to Israel to learn about war
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
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

697
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