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ENERGY

Top Moderates accuse government of ‘breaking promise’ on power prices

Leading Moderate Party politicians in Skåne have attacked the new government for failing to deliver the promised support to those suffering sky high power bills in the southern Swedish county.

Top Moderates accuse government of 'breaking promise' on power prices
Carl Johan Sonesson, the Moderate who leads the regional government in Skåne, said the government had broken its promise to voters. Photo: Johan Nilsson/TT

“This is not the high-cost protection we were promised and which we promised our voters,” Carl Johan Sonesson, the Moderate head of Skåne’s regional government wrote in the Expressen newspaper, together with Carina Wutzler, mayor of Vellinge, Christian Sonesson, mayor of Staffanstorp, and Anna Jähnke, the councillor in charge of regional development. 

The four politicians, some of the most powerful Moderates in the region, said that when Energy and Business minister Ebba Busch announced the government’s plans to support those facing power high power prices, they had been astonished.

“There were many of us among the Moderates in Skåne who both raised our eyebrows and needed to listen again before we understood that what was being presented was something completely different from what we had been promised,” they wrote. 

“Instead of high-cost protection for the coming winter, what was presented was a system of repayments for the year which has already passed.” 

They wrote that the system announced last week would mainly benefit those on fixed contracts, even though it was people with variable contracts who were facing the biggest problem with prices. In addition, they wrote, the model presented would do nothing to protect businesses in Skåne from the high electricity prices this winter, which they warned risk leading to bankruptcies and unemployment. 

READ ALSO: What do we know about Sweden’s electricity price subsidy? 

“We, together with many other Moderates in Skåne promised people in Skåne that a vote for the Moderates would mean that a system for high cost protection would already be in place this winter,” they conclude. “We expect that our new prime minister and government keep that promise.” 

Ulf Kristersson, Sweden’s prime minister, who himself represents the Moderate Party, said that in his opinion the system announced (which had in fact been ordered by the Social Democrats ahead of the election) was “close enough” to what his party had promised. 

“I think it’s pretty close [to what we promised],” he said, saying that the government had had to alter their plans out of expediency. “It was because we were keen to get something done quickly, which it was possible to do.” 

“I think it’s important that we could keep our promise to, before November 1st, say how we planned to handle retroactively the extremely high prices there have already been.”  

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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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