Governments need to balance growth between the private and public sectors, says Peer Hull Kristensen, professor at Copenhagen Business School.

"States that were able to search for new ways of creating growth and development regimes for the future stopped searching and tried to save money. [They] went into austerity policies, tried to roll back the public sector... not realizing that the public sector is needed for advanced firms to advance themselves," Kristensen says.

Meanwhile, Scandinavian countries are uniquely positioned to adopt a balanced growth policy. Together, Kristensen says, they could start "a search for a new way of developing business in association with welfare state institutions to create new types of economies, which could show the way for the rest of the world."

Kristensen made the comments at the conference "The Euro-crisis: repercussions from the financial crisis", which was organized by professor Eli Moen at the Department of Communication and Culture of BI Norwegian Business School.

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