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Swedish finance minister punishes Sweden into the Euro pact


   political-economy




Friday, 22 April 2011
Swedish finance minister, Anders Borg believes that Sweden should join the euro pact after an EU decision in the week to modify some controversial aspects of the pact.
In an upcoming interview to be broadcast over radio Sweden over the Easter Saturday, the finance minister would say that Sweden will be part of the pact.

So far, Sweden has placed itself outside the pact because, among other things, the EU can intervene in member countries' wages system, something the Swedish political and lobbying establishment had seriously frowned at. But now the EU Parliament has adopted a decision which could mean that it would not more pock its nose into other country's wage systems and bargaining power

The decision of the European Parliament on Wednesday now assures Anders Borg that each country can determines their own wage structure without looking over their shoulders whether big brother Europe is watching. Therefore the Swedish parliament can support their membership for the pact.

The Euro-Plus Pact, also initially called the Competitiveness Pact or later the Pact for the Euro, is a 2011 plan in which the member states of the European Union make concrete commitments to a list of political reforms which are intended to improve the fiscal strength of their country.

The plan is advocated by the French and German governments for more widespread adoption by other Eurozone countries. As such it is designed as a more stringent successor to the Stability and Growth Pact, which has not been implemented consistently. The pact has been controversial not only because of the closed way in which has been developed but also for the goals that it postulates.

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Anders Borg has so far taken a cold-hearted stance to a Swedish membership on the grounds that the pact would allow the EU to interfere in member countries' wages system and bargaining model. The Swedish trade unions and the Swedish opposition parties have been even stronger opponent of the membership.

But within the week the European Parliament's economy committee decision on a legislative package that is linked to the euro pact. At several points, the laws were tightened further, but the committee also decided that the countries' own pay and contract systems must be respected.

Anders Borg, now expects the EU finance ministers will endorse the amendment.
“Yes absolutely, it is the information we receive when we had the question up in the Ecofin Council,” he’ll say.
By Scancomark.se Team



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