In this paper solar coronal loops are regarded as regions of localized current flows. The main purpose is to investigate the consequences of current confinement rather than to produce a model. The physical and observational basis for this assumption are presented as well as the connection with previous studies on loop structure. A proper choice of the current profile allows us to treat quantitatively the equilibrium structure of the loops and their MHD and resistive stability properties. Regions of absolute stability against ideal kink modes are found. Explicit growth rates for the tearing-mode instability are computed. The possible relevance of other resistive effects is also discussed and the crucial importance of the small-scale geometry of the magnetic field outlined.