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POLITICS

Swedish foreign minister Tobias Billström to step down and leave politics

Sweden's foreign minister Tobias Billström has announced that he is resigning his position and leaving politics.

Swedish foreign minister Tobias Billström to step down and leave politics
Sweden's foreign minister, Tobias Billström, speaking at an EU meeting in Brussels in August. Photo: Wiktor Nummelin/TT

Billström, who oversaw Sweden’s accession to Nato and the fraught negotiations leading up to it, said in a post on X that he would step down formally from his position next week. 

“It is with a mixture of sadness and pride that I have today informed the Prime Minister that in connection with the opening of the Riksdag on Tuesday, I am leaving my post as foreign minister,” he said. 

Billström gave no reason for his decision and no indication of what he planned to do next, saying only that the decision “had not been simple” and had been something he had “considered and processed for a long time”. 

He said that he had been active in politics for 25 years, ten of which he had spent as a minister, first as Migration Minister in the government led by Fredrik Reinfeldt and most recently as Foreign Minister. 

“I am going to leave politics completely.  That means that I am also leaving my seat in parliament,” he said. “But I am only 50 years old and look forward to working hard and contributing in another role where my engagement can bear results.” 

He said he was “happy and extremely proud” over what had been achieved, mentioning Sweden’s accession to the Nato security alliance. 

“Ths significance of this for the security of Sweden and our Nordic and Baltic neighbours is almost impossible to overeestimate,” he said.

Shortly after his statement Prime Minister Ulf Kristersson posted a statement on Instagram thanking Billström for the effort he has put in during his time in politics.  

“Tobias has done his national service with flying colours,” he said, adding that the two last years as Foreign Minister have “perhaps been the most wearing of all.” 

“On a personal level, Tobias shines with calm and competence,” he added. “He cares about the opinions of others without diverting from our common direction.” 

Kristersson hinted that Billström may already have another job lined up. 

“I have a strong belief in the importance of moving between politics, administration and business, so that you get experience from more than one place,” he said. “So don’t be surprised if we see Tobias Billström in another new official role, either in Sweden or overseas.” 

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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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