Anders Borg was responsible for Sweden’s economy during the financial crisis in 2008. In a new interview in Politikbyrån he says that it is far too early to start talking about the fact that it is about to inflate into crisis, despite inflation and rising petrol and food prices.
Despite that, he has a couple of pieces of advice for Mikael Damberg, who today has the same job.
– To begin with, I would already now recommend that people prepare strongly, even if I am not sure that there will be a crisis. Should Mikael Damberg now enter an economic crisis as Minister of Finance, then I think he himself understands that there will be a lot of work for a long period, there is no alternative. It is very demanding with crises for everyone who is in decision-making situations, says Anders Borg in Politikbyrån and continues:
– It is also important to focus on what is necessary in the long term. If there is any sympathy to be given to Damberg, it is well that it would be good if there is a structural focus on politics.
The advice from Stefan Ingves
Anders Borg talks about an advice he once received from the Governor of the Riksbank, Stefan Ingves.
– During a crisis, you have to settle for a few hours of sleep per night because there are so many processes going on all the time. To sleep – as ordinary people perceive “to sleep” – you do not really do that.
Unexpected tribute
Anders Borg believes that Sweden is a more robust country today, and that we will be a better platform for a possible financial crisis. He also pays tribute to both his own work – and the duo Stefan Löfven / Magdalena Andersson.
– Significant structural reforms were made, not least by Reinfeldt’s government but then also by Magdalena Andersson and Stefan Löfven.
However, there are some clouds of unrest in the sky, according to Anders Borg:
– And that is, of course, household indebtedness. It has continued to increase during these years. At the same time, however, it should be pointed out that the banking system is much stronger than in 2008. We have forced the banks to increase their capital adequacy and we have changed the regulations so that we have pushed them away from the most risky business. In the past, it was short-term gains that governed everything.