‘It is southern Europe’s problem’: Reinfeldt

Prime Minister Fredrik Reinfeldt said on Monday that Sweden is relatively safe from the Spanish crisis as the country mainly trades with countries like Germany, Britain and Norway.

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“It isn’t Europe that is in trouble. The situation affecting southern Europe is not the case in northern Europe,” Reinfeldt said to news agency TT.

“But of course it is true that the problems experienced in the Eurozone will affect us too," he said.

Therefore, Reinfeldt thinks it is important that the Eurozone not just solve their problem, but that they do it in the right way and see what’s at the core by looking to improving the continent's competitiveness,” he said.

Ultimately it is about dealing with financial problems and mounting debt in countries where resources are limited. Reinfeldt also called for demand to be stimulated both through domestic consumption and through exports.

“All this has to be achieved and these are solutions on a national level.” Reinfeldt said.

Reinfeldt hopes that it will be possible to avoid negative effects in Sweden, on interest rates and the labour market.

“We don’t want a market evaluation of us in Europe where we are not judged on our own merits,” said Reinfeldt.

Reinfeldt also called for the Spanish banks' shareholders and creditors to face up to their responsibilities.

Only once shareholders and creditors have acted would it be appropriate for state support to be made available, he said.

“And not until the third stage should it come down to stabilization mechanisms and then states can apply to be considered. A fourth possibility is that the banks themselves can apply” he told TT.

TT/The Local/rm
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