Sánchez is on a tour of Europe ahead of Friday's and Saturday's summit in Brussels.

On the way to Stockholm, he made a stop at the Dutch Prime Minister Mark Rutte, informal leader of the four gangs, or frugal four. The four - the Netherlands, Sweden, Denmark and Austria - disagree on how the proposed € 750 billion in the recovery fund should be distributed and on what terms. The sum corresponds to around SEK 8,000 billion.

Four demands that the draft long-term budget of close to EUR 1,100 billion be reduced.

Compromise with loans

The compromise proposal of the President of the European Council, Charles Michel, is that 500 billion will be spent on grants to the Member States and 250 billion will be offered in the form of loans.

The four gangs, including Sweden, want everything to be distributed as a loan and repaid. Spain, Italy and several other countries in southern Europe believe that they can not borrow more money.

- We need a recovery fund, but it must be in the form of a loan, not a grant, Löfven says at the press conference.

It is the EU that will borrow the money. Sweden and the other three warn that it could have major effects on its own membership fee in the future, if interest rates rise and some of the member countries cannot participate and pay. The loans will only start to be paid off from 2028, in thirty years.

Negotiate on the size

Löfven says that the size of the long-term budget must be negotiated down to the summit.

Although Sweden and Spain have different views on several issues, the two countries agree that the solution must be a common, European one.

Löfven says he does not know if it is possible to reach an agreement on the long-term budget and the recovery package at the summit.

- But we have to work for it, says Löfven.

Pedro Sánchez is also pushing hard for an agreement to be reached.

- It is an important signal to the citizens and the financial markets, says Sánchez.