– There is great uncertainty about the economic developments in Europe. Several countries are in deep debt because they have borrowed beyond their means and failed to implement essential reforms. Now, when government debt crisis is a fact, it is gratifying to see the European solidarity and political will have challenges to find a solution for the debt crisis, said Solberg.
She also argued the crisis is not created by the EU, and there are huge differences in EU countries. Conservative leader especially targeted Greece and Italy and claimed these countries have taken advantage of other euro countries' credit to live well on cheap loans.
Norwegian Economy
Erna Solberg also appraised Norwegian economy, which has not been affected by the financial crisis. However, she critized the government by suggesting they do not take uncertainty in Europe into consideration in the budget, while Norwegian competitive industry experiences it more seriously.
-They face this crisis with a heavier backpack than their competitors. Labour costs in Norway has increased to about 50% higher than our trading partners, productivity growth is weaker in Norway and we have less innovation, stated she.
