Sweden will not commit any money to the Greek bail out: Finance minister


Wednesday, 22 June 2011
The Swedish Finance Minister, Anders Borg, has made it clear that Sweden will not be paying towards the Greek bailout just before he went to the budget debate in parliament on Wednesday:

“It is good that we got a clear result of the confidence vote, so that the Greek government will proceed with the necessary measures. This illustrates how difficult the situation may have developed. There is a narrow majority in Greece and it would obviously be a huge benefit if we could get a broader political support for the reform package,” said Borg.

According t the finance minister, there are reasons to maintain reservation of why the opposition in Greece would not back the government with the necessary measures. While it is important to add that there simply is no room to renegotiate this package.

What could possibly be added in the coming years is that it adds further remediation; it is more in that direction as it may require some extra safety margins. It is still not appropriate to put in some Swedish money in the Greek bailout engines.


“The Greek packet differs from the others, in the sense that it is bilateral commitments from the euro countries and Sweden is not a euro country. So there is no question that the Swedish money will be used in this context,” said Finance Minister Anders Borg.
He continued:
“These packages are good and essential, powerful on the tax side with increases and clear with reduced spending. But the fact remains that one has a very high debt and very substantial deficit. Our own experience would suggest that it would strengthen these packages to provide additional safety margins.”

The Greek government has had a difficult time, with problems that had developed over decades and the current ruling party has a major responsibility for it. At the same time, they took over when the crisis was already in full bloom and the package which is negotiated is both responsible and necessary.

The finance minister marked the Greek opposition politicians down even if they had their own views which they thought were better.
“They are very irresponsible. It is a very real irresponsibility that characterizes them,” he said.
European Commission President Jose Manuel Barroso will propose to the EU leaders who meet for the summit in Brussels on Thursday and Friday, €1 billion of EU structural funds to be earmarked to Greece.

It's not about new money, but to ensure that the resources can be quickly made available. The president said the money will be used in projects that can boost Greek growth and create jobs.
“We need to discuss what we can do to help Greece after the most acute phase,” says Barroso.
“The Greeks also need to feel some hope.”

By Team

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