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POLITICS

‘The Sweden that was hit by Covid-19 was not perfect’

Swedish Prime Minister Stefan Löfven vowed to rebuild a stronger and better Sweden in the wake of the coronavirus pandemic, as he addressed the opening of parliament on Tuesday.

'The Sweden that was hit by Covid-19 was not perfect'
Prime Minister Stefan Löfven. Photo: Jonas Ekströmer/TT

Löfven spoke at an unusual opening session of the Riksdag, with only half of his cabinet ministers and 190 of Sweden's 349 members of parliament present due to coronavirus health and safety measures, as well as King Carl XVI Gustaf, Queen Silvia, and a limited number of guests.

The prime minister's speech is meant to set out the broad themes of the government's policy for the year ahead, and unsurprisingly much of it touched on the pandemic.

In his speech, the Social Democrat leader said Sweden and its welfare state was “a country to be proud of”, but he also addressed some of the flaws laid bare by the coronavirus, which fatally swept though many Swedish elderly care homes at an alarmingly fast rate earlier this year.

“The Sweden that was hit by Covid-19 was not perfect, with deficiencies in care for older people, ongoing climate change that impacts our children's future, and cracks in the welfare system that is meant to guarantee people's security,” said Löfven, pledging to invest more in those areas.

“That's why we will not go back to how Sweden was before the crisis. We will build back even better.”


A slimmed-down version of the Swedish parliament met on Tuesday. Photo: Jonas Ekströmer/TT

Löfven also spoke of foreign policy, reiterating the Swedish government's support for “the Belarusian people's quest for democracy” as well as for “Ukraine's sovereignty and territorial integrity” and “the 'One Country, Two Systems' principle to preserve Hong Kong's autonomy”.

Violent crime has been a hot topic in Sweden in recent years, and Löfven spoke of reinforcing the police and tougher punishments aimed at cracking down on organised crime. “When gangs spread fear and violence, those affected are often hard-working people living in vulnerable areas,” he said.

“But to succeed, it is vital that we stop recruitment into crime. No teenager should ever see a life of crime as their future. The engagement of all members of society is essential to achieve this.”


King Carl XVI Gustaf and Queen Silvia. Photo: Jonas Ekströmer/TT

The prime minister also mentioned Sweden's parliamentary inquiry into overhauling current migration law. The inquiry is set to present its final report, after which negotiations to tighten laws will get under way.

“Anyone coming to Sweden who is not entitled to stay must return. But every person who flees to Sweden and is entitled to stay must receive all the help they need to become part of this society.”

You can read the full English translation of the speech here.

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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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