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We ‘kept out’ right-wing extremism with election outcome: Swedish PM

Prime Minister Stefan Löfven praised January’s cross-aisle government agreement in a speech given at a conference of the Social Democratic party in Örebro.

We 'kept out' right-wing extremism with election outcome: Swedish PM
Prime Minister Stefan Löfven speaks at the Social Dmocrat conference in Örebro. Photo: Filip Erlind/TT

Löfven cited keeping “right-wing extremism”, in the form of the populist Sweden Democrats, away from power as he spoke about the agreement taken with centre-right parties in the January agreement.

“We kept right-wing extremism away from power,” he said.

The PM also said that the Social Democrats would be able to deliver promises made during the election campaign, with the new government now in place.

He promised billions of kronor for healthcare, schools and housing, more spending on the elderly and initiatives for families with children.

But Löfven also framed the eventual election outcome, in which his party and the Green Party entered coalition with the de facto support of the Centre, Liberal and Left parties, as “an important ideological victory”.

“But most important of all is to see this as a basis – the beginning of an ambitious agenda for reform,” he added.

The January agreement between the Social Democratic Party, Greens, Liberals and Centre Party prevented the anti-immigration Sweden Democrats from gaining influence by supporting a potential government led by the liberal conservative Moderate party.

Löfven used his conference speech to warn against right-wing extremists who target dissatisfied voters by directing their frustration towards minorities.

“And they are ready to ally themselves with the part of the right (wing) which represents society’s wealthiest,” he said.

“They have succeeded before. But friends, they should never succeed again,” he continued.

The PM also spent much of his speech focusing on education, which he said could help to even out class differences in society.

He also said he wanted to make Sweden’s school system one of the world’s best in terms of equality and performance.

In 2019's first debate between party leaders in January, Social Democrat leader Löfven stated that far-right nationalist forces are growing stronger across Europe.

“Sweden has chosen another path,” he emphasized.

READ ALSO: What does Sweden's government deal mean for internationals?

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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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