Swedes want more welfare: Prime Minister

Swedes would like more substantial welfare benefits, said Fredrik Reinfeldt, the Prime Minister of Sweden — a country which already has one of the best-funded benefits systems in the world.

"What do Swedes want? Well, they want more welfare and better living conditions," Reinfeldt told CNBC on Thursday at the World Economic Forum in Davos, Switzerland.

He added: "To be honest, most of them (the Swedes) have already seen that coming into place in the last few years. Many European countries have been in recession… That has not been true for Sweden."

(Read more: Southern Europe risks a 'lost generation': World Bank)

Swedish economic growth fluctuated around the zero mark in the second and third quarters of 2013, with reasonably strong domestic demand counteracted by weak industrial production and sluggish demand from abroad — Sweden is export-dependent and Europe is an important market.

"Lot of the structural reforms are still needed in Europe... We are facing a tremendous global competition which is affecting Europe," Reinfeldt said.

Reinfeldt has led the country since 2006 and heads the Moderate Party.

—By CNBC's Katy Barnato. Follow her on Twitter: @KatyBarnato

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