These are tough and trying times for Europe and its citizens. Following an unprecedented financial crisis, the global economy has deteriorated sharply, leading to rising unemployment, increased protectionist tendencies and growing economic uncertainty. Under the leadership of the French and Czech European Union presidencies, the EU has acted decisively to avert a financial meltdown. But given the scope of the challenges we face, much remains to be done.

When Sweden takes over the EU presidency next month, the economic and financial affairs of Europe will be among our priorities. Our first economic objective will be to manage the EU’s efforts to combat the downturn. Our starting point will be the current agenda for growth, competition and employment. Two challenges stand out: restoring the functioning of, and confidence in, financial markets, and countering the negative impact on employment and growth. To address the first of these issues, we need to continue working on the design and implementation of schemes to restore credit supply. This is imperative if the EU is to return to sustainable growth in the short-term.