The financial crisis is high on the agenda when Nicolas Sarkozy today visits Stockholm for talks with Prime Minister Fredrik Reinfeldt.
Yesterday, Mats Odell, the Swedish minister responsible for the financial sector, told the Financial Times that Sweden would be careful with new regulations on private equity. There is heavy lobbying against the Commission proposal on “alternative investment funds”, such as hegde funds.
After meeting Gordon Brown last Monday, Fredrik Reinfeldt sent similar signals about the percieved risk to overregulate the financial sector.
However, Nicolas Sarkozy could find some comfort in a report on the financial sector adopted by Reinfeldt´s Moderate Party before the European elections.
The report, written to a large extent by Finance Minister Anders Borg, contains harsh criticism of the financial sector and proposes tougher regulation, also on hegde-funds and similar instruments. It is much closer to the Sarkozy-Merkel position than to Mats Odell´s statements in the Financial Times.
Now, it seems that Reinfeldt has forgotten what his party has promised voters. My editorial in Aftonbladet today describes the situation in more detail, for those of you reading Swedish.