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SWEDEN ELECTS

Sweden Elects: Liberals face questions over Sweden Democrat links

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

Sweden Elects: Liberals face questions over Sweden Democrat links
Liberal leader Johan Pehrson and Sweden Democrat leader Jimmie Åkesson at a debate on broadcaster SR before the election. Photo: Christine Olsson/TT

Hej,

Here’s this week’s Sweden Elects, with the latest political talking points.

It’s starting to seem like the Swedish Liberals may have underestimated the strength of their international liberal colleagues’ reaction to the centre-right party’s decision to co-sign a bunch of governmental policies worked out together with the far-right Sweden Democrats.

There’s now talk of potentially expelling them from Renew Europe. The organisation tweeted that its president would “for the time being” not invite their leadership to its events, and that they welcomed the liberal Alde Party’s “fact-finding mission to Stockholm (…) to assess the relationship of the parties supporting the government”.

For any readers who want a crash course on European politics: the Alde Party is a transnational European political party made up of liberal parties from across Europe. Its members are part of the Renew Europe group in the European parliament.

Liberal party leader Johan Pehrson told Swedish media that he was “trying to explain” to his European colleagues that the policies also include “meaningful liberal reforms”.

When The Local spoke with the legal director of human rights group Civil Rights Defenders, he said that the government’s policies take Sweden in an illiberal direction.

“It’s not aimed at strengthening the protection of our human rights. It’s not meant to strengthen the rule of law. It’s not meant to strengthen democracy either,” he told The Local of the political programme agreed by the three government parties and the Sweden Democrats. Read the full interview, for members of The Local, here.

At The Local, we will continue to keep an extra close eye on how government policies and any new legislative proposals affect international residents living in Sweden – and we’ve had quite a few questions from readers about this. This article explains what we know so far about who will be affected by Sweden’s new immigration policy.

(I just want to say a quick thank you here to you as a member of The Local – your support lets us strengthen our coverage of these issues. If you enjoy this newsletter or The Local in general, please feel free to help us spread the word about membership)

Sweden Democrat in hot water over Anne Frank comments

In other news, Rebecka Fallenkvist, a high-profile Sweden Democrat and a presenter on the far-right party’s Riks web television channel, grabbed global headlines last week for making degrading remarks about the Jewish teenage diarist and Holocaust victim Anne Frank.

The party’s press chief called the comments “insensitive and inappropriate”, and told Swedish media that Fallenkvist would be suspended pending an internal probe.

She was instead forced to leave her role as a Riks presenter and was moved to an administrative role, working for the party’s finance department in parliament, reported Aftonbladet. The party confirmed she would help plan its “conference activities”.

Fallenkvist, if you remember, also caused a scandal on election night by declaring “helg seger” – which means “weekend victory” but sounds like and is often used in place of the Nazi salute “Hell seger” (Sieg Heil) – in an interview with pro-SD newssite Samnytt.

Power shifts in Stockholm

While Sweden as a whole handed over power from the left to the right, in the Stockholm region, the winds are turning in the other direction.

A centre-left coalition of the Social Democrats, Green Party and Centre Party is set to take over the reins of Stockholm’s regional government, with the support of the Left Party.

It’s easy to draw the conclusion that the urban areas of Sweden are turning leftwards and the rural areas rightwards (the left wing won Stockholm City too), but that may be too shallow an analysis in this particular case. Discontent had been brewing for several years.

In short: the Swedish capital region had been run by centre-right coalitions, headed by the Moderates, for 16 years, but the leadership had been facing growing criticism.

A scandal over cost overruns and operational problems at what was supposed to be Stockholm’s flagship hospital, several structural errors laid bare by the Covid crisis, and accusations of avoiding questioning by the media all led to the shift of power.

The new government of Sweden

Last but not least, the most significant political event since my last Sweden Elects newsletter is Prime Minister Ulf Kristersson’s new government being installed.

Here are the key points about everything you need to know about the new government. On the latest Sweden in Focus podcast, the Local’s team speaks more about the controversial decision to merge the Ministry for the Environment with the Ministry for Business, creating a new ministry headed by Christian Democrat leader Ebba Busch, with Liberal Romina Pourmokhtari working underneath her as Climate Minister.

Here’s a quick rundown of Sweden’s new government ministers, who represent three parties in total: the conservative Moderates and Christian Democrats and the we-promise-we’re-still-the-liberal-conscience-of-the-government Liberals. Thanks for reading and speak again next week.

Best wishes,
Emma

Sweden Elects is a weekly column by Editor Emma Löfgren looking at the big talking points and issues after the Swedish election. 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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