On Sunday night, the Euro countries revealed they would follow the British model and pump capital into crisis-hit banks. Some banks will be partly nationalised and loans between banks will be guaranteed by the government.
The Swedish Prime Minister welcomed the proposal but had warned that it should be up to each country to decide which measures they take so that one country’s tax payers don’t end up paying other countries’ bills.
The new Swedish legislation announced at a press conference today goes even further, says Reinfeldt. It makes each country responsible for issuing state guarantees to their own banks up until the end of next year.
A recent poll published over the weekend found confidence in the Bank of Sweden to be high at 65 per cent
In response to the financial rescue plans, the Stockholm stock exchange went up by 7.5 per cent after just a few hours trade this morning. It is the highest rise in ten years.