Reinfeldt "No" to Eurobonds

Sweden's Prime Minister Fredrik Reinfeldt has dismissed the issue of eurobonds as a bad idea ahead of this afternoon's meeting of EU leaders to discuss the financial crisis triggered by the turmoil in Greece.

Sweden is not a eurozone member but Frederik Reinfeldt's opposition to introducing eurobonds will make it easier for Germany's Angela Merkel to bat away the proposal from France's new president Francois Hollande.

The Swedish prime minister told a parliamentary committee in Stockholm this morning that Sweden opposes any idea of collective borrowing as a bad idea, basically saying that it would play havoc with the debt markets.

"We are very sceptical to this and think that it is unclear what they shall be used for. It is a fact that in Europe we have well functioning financial markets which can enable loans in a variety of ways. Here the risk is that one tries to pledge states or other bodies to share the risk in a way which we do not think is adequately presented," Reinfeldt said.

Experts predict that no concrete solution will come out of tonight's meeting other than a few ideas on how to boost growth.

On the subject of growth, Sweden's prime minister said;

" We believe that the growth question in Europe is more about how we should open up the market, how we have more free trade agreements with the rest of the world and we should have better trade inside Europe. This means more growth."

Growth as opposed to austerity has divided member states, particular France and Germany, with Angela Merkel pro-austerity while France champions growth stimulation measures.

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