• 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
Late summer sun set to hit Sweden

Late summer sun set to hit Sweden

Forecasters have predicted sunshine across Sweden this week, with a warm front moving in from Russia and temperatures of up to 25C. READ  

International police hunt
Swedish killer arrested after European hunt
Photo: Police

Swedish killer arrested after European hunt

UPDATED: Police arrested a man on Tuesday afternoon after he went missing from a psychiatric ward in western Sweden at the weekend. The man had been convicted of murdering a five-year-old schoolgirl in 2003. READ  

Music
The five best Swedish songs of the month
Swedish singer Tove Lo. Photot: TT

The five best Swedish songs of the month

The summer may be (almost) over but the music will keep on playing here at The Local. Our resident music guru Paul Connolly will be selecting his top new Swedish tracks for us in a new monthly feature. READ  

Hedgehog pet craze sweeps Sweden

Hedgehog pet craze sweeps Sweden

African pygmy hedgehogs are being bought by growing numbers of Swedes, as a trend for keeping exotic pets sweeps the country, the Department for Animal Welfare and Health tells The Local. READ  

Poisonous mushrooms cause stir in Sweden
The mushroom in this picture is not the same as the one from the story. Photo: Shutterstock

Poisonous mushrooms cause stir in Sweden

A person selling freshly-picked mushrooms in Gothenburg has come under fire after it turned out the delicacies were not only poisonous but also hallucinogenic. READ  

Pirate Bay founder case starts in confusion

Pirate Bay founder case starts in confusion

The largest hacking case in Danish history began in confusion on Tuesday, after lawyers representing Swedish Pirate Bay co-founder Gottfrid Svartholm Warg accused the prosecution of "unreasonable" tactics. READ  

Swedfund joins H&M in Ethiopia expansion

Swedfund joins H&M in Ethiopia expansion

As H&M expands into Ethiopia, Sweden's state venture capital unit Swedfund has announced that it will back the clothing giant, in a move hoped to create more jobs for local women. READ  

Elections 2014
Social Democrats reveal election manifesto
Photo: TT

Social Democrats reveal election manifesto

UPDATED: Sweden's main opposition party the Social Democrats has revealed its election manifesto at a press conference at a high school in Stockholm, with a key focus on education and welfare benefits. READ  

Teen run over by train after 'shoplifting' chase

Teen run over by train after 'shoplifting' chase

A teenage boy is in a critical condition after he was hit by a passing metro train in Stockholm. The accident ground rail traffic to a halt, and has police suspecting attempted murder. READ  

Swimrun
Record win at Sweden's tough island race
Photo: Jakob Edholm/ÖTILLÖ14

Record win at Sweden's tough island race

Two Swedes crushed last year's course record at the Swimrun world championship in Stockholm's archipelago on Monday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
National
Huge clear up underway after Skåne floods
Politics
Sweden's Alliance reveals full manifesto
Tech
Sweden's highest peak to lose title next year
Blog updates

02 September

America night (Blogweiser) »

" There was an event this weekend for the ‘Americans in Sweden’ Facebook group. I’m a member, and I brought my girls to the evening. The gathering was at a Boston-themed sportsbar in a mall. There were loads of screens, a bowling alley, a game room and a jumbotron. It was as good a place as any to..." READ »

 

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 
 
 
Politics
How immigration became a key election issue
Society
Brit's life in Sweden becomes BBC radio show
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Sponsored Article
Find out what gives this Swedish school executive appeal
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

755
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