The Swedish Finance Minister Anders Borg has announced that the banks of Sweden are threatenend by the euro debt crisis.
In spite of being one the strongest public finances in Europe and one of the most important contributors to the EU after Belgium and Germany, Sweden is worried about the liquidity crisis as well as the rest of the countries of the Eurozone. It's worth reminding that the Swedish are member of the European Union but not of the Eurozone, that means that they are dependent on their own central bank and their krona. Because of this, the Scandinavian country is so vulnerable to the Eurozone crisis, just because they don't have access to the liquidity fee of the European Central Bank; as a short term solution they're planning to establish their own liquidity fee on the Swedish banks.
In my opinion, given the fact that Sweden is one of the major contributors of the European Union and their strenght in Europe is visible, it would be worth listening to the solution report to the EU debt crisis that the Swedish politicians have proposed in order to improve the financial situation of the Eurozone. Assuring Sweden's econimical stability would give the EU fonds some stability as well, as their contributions permits the injection of some liquidity on the European Central Bank.
In spite of being one the strongest public finances in Europe and one of the most important contributors to the EU after Belgium and Germany, Sweden is worried about the liquidity crisis as well as the rest of the countries of the Eurozone. It's worth reminding that the Swedish are member of the European Union but not of the Eurozone, that means that they are dependent on their own central bank and their krona. Because of this, the Scandinavian country is so vulnerable to the Eurozone crisis, just because they don't have access to the liquidity fee of the European Central Bank; as a short term solution they're planning to establish their own liquidity fee on the Swedish banks.
In my opinion, given the fact that Sweden is one of the major contributors of the European Union and their strenght in Europe is visible, it would be worth listening to the solution report to the EU debt crisis that the Swedish politicians have proposed in order to improve the financial situation of the Eurozone. Assuring Sweden's econimical stability would give the EU fonds some stability as well, as their contributions permits the injection of some liquidity on the European Central Bank.
I think you're totally right about that Marina. In my opinion the EU should listen to that report since it comes from a country with experince in economic matters and getting over economic problems that we, as a continent, are still struggling with.
ReplyDeleteI completely agree with both of you Marina and Diana, if Sweden is one of the main contributors to the EU, the governments in the Union should take their ideas into account because it’s not fair for the Swedish that their money is being used in an organization that cannot control properly the way it invests it. On the other hand I kind of understand that if you are not participating in the whole organization (EU plus Euro zone) you cannot have the same privileges that those countries that are completely in have. It is a very controversial situation and it is hard to decide which part of the “conflict” is correct, but the thing is the crisis in Europe is increasing and the most important contributors are not going to continue funding it.
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