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'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)

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.
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