The first way could - if it didn´t succeed - end in a big crash, and the second could create a vicious circle, also leading to a crash. It is likely that the countries involved will try to combine both methods. Boost areas that are important for growth, while other areas have to suffer major cut-backs.

The whole Euro zone is affected
The issue doesn´t only concern Greece, but the whole Euro zone is affected - partly because several countries have the same problems as Greece, and partly because the single currency prevents national currency adjustments, rocking the whole Euro area to its foundations. This means it is important to stand up for the weakest link so that the chain does not break. The Euro symbolizes the biggest step in building Europe in which Germany and other countries have left their own currency and ceded monetary policy to a single European central bank authority. For this reason strong action is being taken to resolve the crisis and to bolster confidence in the Euro as a world currency.  In particular since Japan, the UK and the USA have a similar situation with large imbalances in the economy, there is a major risk that the public cut-backs could suppress the economic upturn that has just begun.

Tense situations in many parts of the world
North Korea´s torpedoing of a South Korean naval vessel is increasing the tension in that part of the world, and fears over what this may lead to in the future are increasing. Escalation on both sides and a potential nuclear threat from North Korea are worrying. Israel´s handling of ship convoy to Gaza is increasing tension in the Middle East.

Oil spill
The giant oil spill in the Gulf of Mexico caused by BP´s oil production will have long-term consequences for more than the surrounding natural environment. The safety requirements for deep sea oil drilling will be tightened and the opposition to opening new oil fields in sensitive areas such as Lofoten, Antarctica, Alaska and other locations will increase. The easily accessible oil is in Russia and the Middle East and it is managed by national oil companies that are under political influence. The major international oil companies have their biggest oil fields in the sea at great depths. The consequences are that oil prices will increase and that the political risk connected with the supply of oil will continue to be great. In addition, as consumption in the world is increasing the pressure to develop alternatives will become even stronger.

Large increase in growth in Sweden
Sweden can take satisfaction from an unexpectedly large increase in growth during the first quarter. The expectation was for below 1 % and the result was 3.0 %, and it is the strongest in Europe. Expansionary policies without risking government finances, increased exports and optimism have produced this result. There is a risk that the Euro crisis and pessimism will suppress the growth of our economy in the coming quarter.

Better times favor the automotive industry
The automotive industry worldwide is benefiting from the better times that are now with us and car sales are increasing. AB Volvo, Scania and Volvo Cars have produced surprises with positive figures. Saab is facing a moment of truth with the impending world launch of the Saab 9-5. GM is reporting profit for the first quarter of the year and Toyota has reported surprisingly positive figures, with increasing market share in the USA.

There are many positive signs, but the second quarter of 2010 has also shown the sensitivity of the economic upturn. The major threats are the public cut-backs which are suppressing growth as well as the Euro´s precarious situation, both of which will seriously test the cooperation between the EU countries - it´s a case of “one for all and all for one" - or European integration will start to creak. As a small export dependent country Sweden will be affected heavily by international developments.