Stoltenberg fear new financial crisis

Prime Minister Jens Stoltenberg is worried about a new downturn in the global economy. Photo: Aas, Erlend / Scanpix

Prime Minister Jens Stoltenberg fear another backlash that could break the world economy.

The reason is debt problems in Greece and the fear that the big economic problems will spread to other debt-ridden countries, which in turn has pushed down stock markets worldwide the past week.

Sunday will finance ministers meet to discuss measures to stabilize the economy in the euro countries.

Stoltenberg said the situation is serious and that there is an increasing danger of a new downturn in the global economy:

“We have gone from a financial crisis, with falling share prices to a job crisis with rising unemployment, and now a debt crisis, with unmanageable debt in many countries,” he told NRK.

Second wave broke the economy

According to Stoltenberg, a new setback to serious consequences, because we now have a worse position than in 2008.

“In the 1930’s we saw that it was just the second wave that broke the world economy. The scary part is if we are facing something similar now,” said Stoltenberg.

Could affect ordinary people

Stoltenberg said that ordinary people can be affected if the crisis develops.

“The welfare model we have known in Europe for several decades, is under pressure because many countries are unable to pay for it. More serious is that the countries had large deficits in a period where they really should have had big surpluses, so they could be prepared for the sharp rise in expenditure comes to the elderly, to pensions and health in years to come.  What we now see is serious,” Stoltenberg said.

Source: NRK