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SWEDEN ELECTS

Sweden Elects: What happens if the right wing fails to form a government?

The Local's editor Emma Löfgren explains the key events to keep an eye on in Swedish politics this week.

Sweden Elects: What happens if the right wing fails to form a government?
Will the Moderates' party leader Ulf Kristersson manage to cobble together a government? Photo: Jonas Ekströmer/TT

Hej,

It’s been a month since his right-wing bloc beat the left bloc by three seats, and Sweden’s presumptive next prime minister is conspicuously quiet.

Ulf Kristersson’s Wednesday deadline for producing a viable potential government in his next meeting with the speaker of parliament (who will then put that to a vote in parliament) is looming closer and closer.

But so far, there’s been little sign of a breakthrough in negotiations between the right-wing parties (which of course doesn’t mean that it isn’t forthcoming; the party leaders could just be uncharacteristically quiet).

Kristersson wrote on Facebook last Wednesday that “negotiations between the Moderates, Sweden Democrats, Christian Democrats and Liberals remain constructive and are progressing according to plan – but also, nothing is done until it’s all done”. One might however wonder if the slower-than-expected talks do not indicate a slight snag in the plan.

He’s still within deadline for now and won’t have to show his cards until Wednesday, but Swedish media report that the four parties are finding it difficult to retrieve the common ground on which they campaigned.

Sweden’s public radio broadcaster’s news programme Ekot reports that the Liberals are insistent on getting ministerial portfolios in a Moderate-Christian Democrat-Liberal government, but the Sweden Democrats are equally insistent on not allowing their liberal nemesis-or-partners-it’s-not-really-clear to be in government. We can’t have it, so you can’t either.

Why is Kristersson digging his heels in for the Liberals, the smallest party in parliament? Well, since the margins are so tight, even the Liberals’ 16 seats are important. The party is split on whether or not it’s happy to be part of the same bloc as the Sweden Democrats, and being elevated to government status will make it easier to keep their members in line. The last thing Kristersson needs is for rebelling Liberals to vote against him.

The Dagens Nyheter newspaper reports that another point of contention that has emerged is the question of whether the Sweden Democrats should be allowed to have some of their party officials based in the government building rather than the parliament building.

The benefit for the Sweden Democrats would be shorter routes to liaising with the government; those who oppose it would argue that working from the government offices is traditionally reserved for, well, the government.

So what happens if Kristersson does not manage to bring these four parties together in time for his next meeting with the speaker this week?

The speaker then has three choices. He could extend the deadline, or pick a new person to try to cobble together a government (I wouldn’t want the job, but you’d better believe the outgoing Social Democrat Prime Minister Magdalena Andersson is waiting in the wings), or put Kristersson to a vote in parliament to at least give him a fair shot at success or humiliation.

Those of you who were around for Sweden’s record-long government formation in 2018 (which took 134 days, so there’s an argument that I should stop complaining and give Kristersson a break) may remember this, but the speaker has four shots at putting a prime ministerial candidate to a vote in parliament.

If no one is successful, a snap election must be held within three months. Hey, at least I would get to keep writing this newsletter, and we’re all having a lot of fun together, aren’t we!

A candidate passes a prime ministerial vote by having no more than 175 votes against them, so abstentions effectively count as votes in favour.

Even if Kristersson fails and the baton gets passed to Andersson, would she be able to form a left-wing coalition with enough support from parliament? As Swedes would say, nja. Her current allies in the Left, Centre and Green parties don’t hold enough seats, so the only way she’d win majority support is if the Liberals shuffle awkwardly back across the aisle to join the left, and that’s a dance they may have done too many times.

What about Jimmie Åkesson, whose Sweden Democrats are the largest party on the right? Good luck.

Anyway. The other interpretation of the silence from the right-wing bloc is that talks are in fact progressing well, which I base on the reasoning that there would be a lot more backstabbing in the media if they weren’t.

We’ll know in two days, if not sooner.

Best wishes,

Emma

Sweden Elects is a weekly column by Editor Emma Löfgren looking at the big talking points and issues in the Swedish election race. Members of The Local Sweden can sign up to receive the column as a newsletter in their email inbox each week. Just click on this “newsletters” option or visit the menu bar.

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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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