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Borg: time to 'pressure' Italy and Greece

AFP/The Local · 8 Sep 2011, 08:14

Published: 08 Sep 2011 08:14 GMT+02:00

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"There has to be sizeable international pressure on Greece and Italy" to push through reforms to get their economies in order, he told Swedish news agency TT.

He also expressed concern about doubts surrounding the solidity of French and German banks.

He said that heavy amounts of sovereign debt carried by Europe's banks were creating uncertainty and the only way to resolve the issue was for Greece and Italy to restore confidence in their economies.

Sweden has previously expressed concerns that mounting doubts about economies such as those of Greece, Portugal, Italy and Spain will affect its small export-reliant economy.

After recovering from the global financial crisis in 2008 and 2009, Sweden has seen its economy grow to become one of the most robust in Europe.

Story continues below…

But the Swedish central bank said earlier on Wednesday that it saw the Swedish economy weakening as a result of the world's deepening financial crisis, and held its key interest rate at 2.0 percent.

While forecasting Swedish economic growth of 4.4 percent for this year, the bank revised downwards its growth forecast for 2012 from 2.2 percent to 1.7

AFP/The Local (news@thelocal.se)

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Your comments about this article

10:20 September 8, 2011 by Vstrommer71
As a Greek resident I can't say I disagree with Sweden's finance minister opinions.BUT there are some points that have to be cleared.First of all we all know that Greek economy is a holly hell.We are a country full of corrupted politicians and tax avoiders and we almost product nothing.Our economy depends on tourism despite the fact that Greece is rich in nature resources(sun,wind and water)

I understand that Mr Borg is anxious about the effects on Sweden's exporting economy and this is also the German's financial minister concern.But Mr Borg(and Mr Schäuble) please don't put your finger in Greece because you are also responsible for the situtation.Aren't German Banks making profits all of this time speculating on Greek's collapse?Do you think that by lending more money(at an insane interest) to a potentially bankrupt country will help it to survive?I'd also like to find which enlighted mind(in the IMF-EU combo) decided that you can save an economy only by cutting the salaries,increasing all the taxes and by leaving thousands of people(both from public and private sector) without job.OK we will guarantee our lenders that we will sell at a bargain price Parthenon,Ancient Olympia and some islands to pay them back...

From my point of view it would be honest from the EU part to send a new government in Greece comprising of European experts to handle the situation.I do prefer this option because this would be fair for the whole European Union to admit that there is a collective responsibility,and by pointing the black sheep is not the solution for the problem
12:09 September 8, 2011 by RobinHood
Back in 1981 I decided I didn't want to work anymore, it made me tired, so I worked half time instead. This put a dent in my economy, so I stopped paying my taxes. That gave me enough to live on, but I wanted more. I wanted what my friends with jobs had. I wanted a BMW, I wanted a plasma TV, I wanted a smart house. So I borrowed money off my rich hard working friends; lots of money. Of course they asked how I was going to pay it back, so I lied and told them I was working full time as a stock broker and owned lots of property they could have as security for the loans. I didn't really own anything. They actually believed me. I was having such a great time spending their money, in 2004 I threw my friends a hugely expensive party using the money I borrowed from them. They all had a great time and left firmly believing that anyone who could organise such an expensive party must have lots of money. I did, theirs. Of course I had to pay some of the money back, but I just borrowed more and more and used the money I borrowed from one friend to repay another. Finally I had borrowed so much, I couldn't even repay the interest and my friends became meaner and wouldn't lend me as much as before, and charged me higher interest. And then they realised what I had been doing. They were very angry and told me they would only lend me money if got a proper job, sell my BMW and plasma TV and spend less money. I told them I would do these things, but I didn't really. They gave me the money anyway. Now they are really angry and say they won't lend me any more money at all. I am very disappointed with my friends. They were foolish enough to believe my lies, so it's their fault as much as mine. Anyway, I have always been a good friend to them, and I have ten children who will grow up just like me, so they have to see me OK; right! I often get very angry with them when I am out driving my BMW or watching my plasma TV or walking my black sheep. I still don't pay any taxes.
13:13 September 8, 2011 by Vstrommer71
Νice story ,and a comfortable one for some people

It's quite relaxing for some minds to consider that if you are a careless person,living-that's what the majority thinks,but it's not entirely true-above your standards by borrowing money,hey you're the only responsible for this.And the poor,innocent people who lent you money(very gentle people indeed by lending you money at a 6% interest) are just suckers.Even if your lenders were making profits speculating your bankruptcy.

I guess you also agree that there is a mutual responsibility.It's my fought in case I am spending carelessly my borrowed money but,in the other hand,lenders also have to consider if their tactics are the right ones

Don't forget the term ''risk'' .When you risk,you might fall
14:49 September 8, 2011 by Twiceshy
For every irresponsible loan, there are two guilty parties: the borrower and the creditor.

If Swedish and especially German banks irresponsibly lent money to Greece etc., they too should suffer the consequences.
15:25 September 8, 2011 by godnatt
Dissolve the EU already. It's a joke.

Why tie your economic fate in with the bums of Southern Europe?

Or hand your sovereignty over to the professional pinko bureaucrats in Brussels?

It's insanity.
16:41 September 8, 2011 by Svensksmith
Anyone want to switch to the Euro now?
10:03 September 9, 2011 by Nemesis
@ godnatt

Your belief that Europeans should not be allowed to travel freely across Europe, your opposition to cross border trade and you need to bring Europe back to the 1800's in which war was common, lets me know your mindset.

If you don't like living in the EU, leave. You can move ot bastions of thinking as you do in countries such as Somalia, Afgnaistan or the USA.

The EU has improved millions of lives all over Europe.

@ Svensksmith

Estonia entered the Euro in January. Slovenia came into the Euro in 2009 and Slovakia in 2007. Czech Republic and Poland are slated to join about 2014-2015. The Danish currency has been fixed to the Euro for years.
02:18 September 11, 2011 by godnatt
@ nemesis

Free trade is easily accomplished without handing over sovereignty or economic security to the apparatchiks in Brussels.

Ever heard of trade agreements? Immigration agreements?

The EU has been around since the 1800's? That's news to the rest of us.

Pretty sad response. As usual.
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