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POLITICS

ANALYSIS: Is the Nordic swing to the left nothing but an illusion?

For the first time in decades, left-wing parties are set to be in power in all five Nordic countries after Norway's general election. But what does the left's success actually mean?

ANALYSIS: Is the Nordic swing to the left nothing but an illusion?
Swedish Prime Minister Stefan Löfven of the Social Democrats. Photo: Claudio Bresciani/TT

The last time Denmark, Finland, Norway and Sweden all had social democratic prime ministers was back in 2001. And if you throw in Iceland, it has not happened since the 1950s.

The resurgence of left-wing parties elsewhere – particularly Germany – has led some to believe social democrat parties are finally making their way out of the doldrums.

“At the very least it crushes the notion some people have that social democratic parties are in splinters,” Norway’s probable next prime minister, Labour leader Jonas Gahr Støre, said on Tuesday.

According to him, his victory is a sign of the return of social democracy “as a leading political force”, in a “somewhat renewed” form that has struck a delicate balance between industry, employment and climate issues.

Norway’s Labour Party may have benefited from the current desire for a stronger state and fewer inequalities inspired by the pandemic, suggested Elisabeth Ivarsflaten of the University of Bergen.

But they were also better at containing the far-right populists, which have lost momentum in both Norway and Denmark.

“They thought very carefully about how to handle the populists, both in terms of rhetoric and strategy, and about the kinds of policies they need to adopt,” Ivarsflaten said.

In Denmark, the Social Democrats led by Prime Minister Mette Frederiksen have stolen the far-right’s thunder by adopting one of Europe’s most hardline anti-immigration policies.

Scandinavia, a bastion of social democracy in the post-war period, saw the right come to power during the crisis years in the 1970s and 1980s.

That paved the way for more regular power shifts over the years, as social democrats saw their election scores fall from between 40 and 50 percent, to 30 or even 20 percent.

No ‘harbinger of renewal’

Despite coming back to power, their popularity at the ballot box has hardly rebounded – they have benefited instead from increasing fragmentation on the right.

Norway’s Labour became the biggest party after Monday’s election despite garnering just 26.3 percent of the vote, their second-lowest score since 1924.

Once able to rule alone or with the support of a single smaller party, social democratic parties now find themselves having to build coalitions with two or even three partners, forcing them to make compromises and concessions.

In Sweden, they were able to retain power in a 2018 vote but posted their lowest score in a century and had to build a minority coalition with the Greens supported by two centre-right parties.

At the end of the day, “it’s a weakened social democracy”, concluded political scientist Jonas Hinnfors of the University of Gothenburg.

He attributed social democracy’s recent election successes to divisions on the right and the centre, rather than a real revival on the left. Yohann Aucante, a Nordics expert at the EHESS social sciences university in Paris, agreed.

The current “five for five” is actually “very fragile … it’s not a harbinger of a renewal of the left in Scandinavia”, he said.

“The paradox is that all of these parties have problems and dilemmas.”

“In Norway … it’s oil, with the social democratic youth wing forcing the party to backtrack on oil exploration, whereas if they had listened to the union factions the choices would’ve been very different,” he said.

Meanwhile, the Nordic grand slam could be short-lived.

Iceland goes to the polls on September 25th, when the right-wing Independence Party, currently a member of the left-led government, hopes to reclaim the post of prime minister.

And in Sweden, which holds its legislative elections a year from now, opinion polls suggest the right-wing could come to power, possibly with the support of the far-right for the first time.

Article by AFP’s Marc Préel, with Pierre-Henry Deshayes in Oslo

Member comments

  1. The Swedish social democrats have not been a left wing party in several decades. They are centrist party with very high neoliberal tendencies.

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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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