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POLITICS

Sweden resumes talks to find a new prime minister

Sweden's party leaders will meet with the parliamentary speaker for a second round of talks on Tuesday, with the aim of finding a candidate for prime minister who can lead a workable government.

Sweden resumes talks to find a new prime minister
Parliamentary speaker Andreas Norlén meeting with Social Democrats leader Stefan Löfven last week. Photo: Henrik Montgomery / TT

After the September 9th election left the two main blocs separated by just one seat, arriving at a compromise could be difficult, and the first round of talks last week didn't break the deadlock.

It is the job of newly-elected speaker Andreas Norlén to put forward a proposal for who should become prime minister, but this is only done after talks with the different leaders. On Friday, representatives from the parties appeared to call on Norlén to give one of the eight party leaders the go-ahead to start negotiations on forming a new government.

Both the centre-left bloc and the centre-right Alliance (Moderate Party, Christian Democrats, Centre Party and Liberal Party) believe they should be the one to lead Sweden's next government. If they can't find any common ground, the far-right Sweden Democrats, who are the third largest group, will be influential.

One possible result of Tuesday's talks is that Moderate Party leader Ulf Kristersson could be asked to try to form a new government, which would force Social Democrat leader Stefan Löfven to talk with the centre-right Alliance.

The Social Democrats' spokesperson has said the right person to lead negotiations is Löfven — who was ousted from his job after losing a confidence vote last week, but continues to lead a caretaker administration.

Another possibility is that the Moderates and Christian Democrats might try to form a government with the support of the far-right Sweden Democrats (SD) but without the Alliance's other two parties, the Centre and the Liberals, which have said they will not work with the SD.

Norlén has four attempts to get parliament to agree to a new prime minister, or at least convince enough MPs to abstain and not actively vote against the candidate.

If they fail to agree on any of the four proposals, a new election must be held within three months. However, this has never happened in Swedish history.

READ ALSO: What's next for Sweden after confidence vote?

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POLITICS

Full steam ahead for Swedish economy in new three-part budget bill

Sweden has won the fight against inflation and expects GDP to grow next year, Finance Minister Elisabeth Svantesson proudly proclaimed as she presented the government's budget bill for 2025.

Full steam ahead for Swedish economy in new three-part budget bill

“Going forward, the task will be to ensure that high inflation does not return, and at the same time to implement reforms and investments that build a more prosperous, safer and more secure Sweden for generations to come,” said Svantesson in a statement on Thursday morning.

The government predicts that Swedish GDP will grow 2.5 percent next year followed by 3.2 percent 2026.

Unemployment, however, is expected to remain unchanged at 8.3 percent in 2025, only beginning to drop in 2026 (7.9 percent, according to the government’s predictions, followed by 7.6 percent in 2027).

Svantesson told a press conference that a strong focus on economic growth would create jobs.

The 2025 budget, worked out in collaboration between the right-wing government coalition and far-right Sweden Democrats, is far more expansionary than the restrained budget Svantesson presented last year when Sweden was still fighting high inflation: 60 billion kronor towards new reforms rather than 39 billion kronor for 2024. Almost half, 27 billion kronor, will go towards funding lower taxes.

ANALYSIS:

Svantesson highlighted three areas in which new reforms are prioritised:

  • Strengthening household purchasing power after several years of the high cost of living putting a strain on household budgets, with reforms set to push the tax burden to its lowest level since 1980, according to the government.
  • Reinstating the “work first” principle, meaning that people should work rather than live on benefits. Some of the measures include language training for parents born abroad and increasing the number of places in vocational adult education.
  • Increasing growth, focusing on investments in research, infrastructure and electricity supply.

In the debate in parliament on Thursday, the centre-left opposition is expected to criticise the government for lowering taxes for high earners and not investing enough in welfare. 

Investments in healthcare, social care and education are significantly reduced in this budget compared to last year: down from 16 billion kronor to 7.5 billion kronor. 

Meanwhile, the hike of the employment tax credit (jobbskatteavdraget) – a tax reduction given to people who pay tax on their job income – is expected to lead to a 3,671 kronor tax cut for people on the median salary of 462,000 kronor per year.

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