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Centre-right Alliance and Green Party to lead Stockholm council

The Green Party has agreed to work with the centre-right Alliance parties in Stockholm's city council, meaning a power shift in the Swedish capital.

Centre-right Alliance and Green Party to lead Stockholm council
The group leaders of the Centre Party, Liberals, Christian Democrats, Moderates, and Green Party in Stockholm city council. Photo:

“We have chosen to enter into a green-blue cooperation,” said Anna König Jerlmyr, group leader for the Moderate Party in Stockholm. She said the decision was taken after “productive and intensive negotiations with the goal of finding a stable and long-term majority.”

The capital was previously run by a red-green-pink bloc, made up of the Social Democrats, Green Party, and Feminist Initiative, which lost its majority in the September 9th election.

September 9th saw Swedish citizens vote for their representatives at three levels of government: national, regional, and municipal. At the national level and at the local level in many areas, no bloc won a majority, leading to a period of negotiations made complicated by the high number of parties in Swedish politics (eight represented in parliament, with others active at the local level).

Two policies agreed on by the parties were that plans for a new flagship Apple store in the city centre will be stopped, and that Stockholm will not host the 2026 Winter Olympics, Dagens Nyheter reported.

“The discussion means that we will be able to carry out much of our election manifesto, and ensure that the Sweden Democrats are not given leverage in Stockholm,” said Green Party group leader Daniel Helldén at the press conference.

As in the parliamentary elections, the Stockholm city council elections left the two main blocs — the Alliance and the red-green-pink grouping — without a majority, with the anti-immigration Sweden Democrats the third largest group.

At the national level, deadlock continues. Moderates leader Ulf Kristersson has been asked by the speaker of parliament to try to form a government, but whether or not he will be successful and, if he is, which parties he will get support from, remains to be seen.

ANALYSIS: Who will govern Sweden? Eight possible coalition scenarios

 

 

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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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