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SWEDEN ELECTS

Sweden Elects: New finance minister under fire after first long interview

In our weekly Sweden Elects newsletter, The Local's editor Emma Löfgren explains the key events to keep an eye on in Swedish politics this week.

Sweden Elects: New finance minister under fire after first long interview
Finance Minister Elisabeth Svantesson with her first government budget. Photo: Pontus Lundahl/TT

Hej,

Elisabeth Svantesson has given her first long interview as finance minister, speaking to the Svenska Dagbladet daily just days after she presented her first budget on behalf of Sweden’s new, right-wing government.

The government has already faced accusations of deprioritising the climate crisis, and Svantesson conceded in the interview that its planned investment in nuclear power (which is a low-emission source of energy, but takes time to develop, so it pays off only in the long run) would also make it difficult to reach Sweden’s climate targets within the next decade.

Asked what will happen if Sweden does not meet its Agenda 2030 target, the sustainable development targets agreed by the United Nations, by that year, she said: “It would mean that we don’t meet the targets. If we don’t we don’t, but our ambition is to steer towards that goal.”

That quote, which was perceived as far more laissez-faire than the situation warrants, was met with criticism from the opposition.

“I’m astounded at how you sign agreements and vote for legislation in parliament only to ignore it when you feel like it,” said Green Party leader Per Bolund.

The Social Democrats’ former finance minister Mikael Damberg gave a diplomatic-or-patronising answer (a school of conflict avoidance that can be perfected only by a party that’s more used to being in power than not being in power) and guessed that Svantesson had perhaps not meant it like that. “Svantesson has had a lot to do this week, maybe she’s tired.”

Speaking of interviews, one Swedish newsroom has not yet been getting them, at least not with senior ministers. One of public broadcaster SVT’s top political interviewers, Anders Holmberg, points out that all four right-wing party leaders and several ministers have declined to appear on his “30 minuter”, a show famous for putting hard-hitting questions to politicians and senior decision-makers. It’s of course not mandatory to say yes to all interviews even as a politician, but it’s an unusual move.

It’s interesting that Bolund tried to attack Svantesson specifically on not following through on commitments. This has been a recurring piece of criticism since the new government was elected two months ago.

The budget was more conservative (in this particular case I mean conservative as in cautious rather than as in right-wing) than you might have expected based on the government’s election pledges, and it’s not the only campaign promise that they’ve been forced to backtrack on.

“The central thing is that they’re breaking most of their major election promises at the same time as as they’re not really managing to take care of the big social problems Sweden faces today,” Damberg told SVT.

To be fair, you would kind of expect him to say this (when has a political opposition party ever praised the government’s budget?), but significantly, the criticism hasn’t only come from the left-wing opposition.

Moderate Party politicians in the powerful Skåne region earlier this month slammed their party for failing to deliver the promised support to those suffering sky high power bills in the southern Swedish county.

“There are effectively no reforms, and they’re not putting in place the policies they campaigned for in the election,” the head of the liberal think tank Timbro told the Aftonbladet newspaper about the budget.

It will be interesting to see whether the label as “promise breakers” sticks, and whether that will affect the right-wing parties in the next election.

Did you know?

Parties make more and more pledges during election campaigns. Ahead of the 2014 election, a whopping 1,848 vallöften (election promises) were made, according to research by Gothenburg University, up from 326 in 1994.

You may not believe this, because the stereotypical image of the dishonest politician perhaps unfairly endures, but research shows that most politicians keep most of their election promises most of the time.

Swedish parties in a single-party government and coalition governments with a joint manifesto tend to deliver on between 80 and 90 percent of their vallöften, according to political scientist Elin Naurin. For coalition governments without a joint manifesto, it ranges from 50 to 70 percent.

In other news

the deputy mayor of the town of Norrtälje, who got 15 seconds – technically 26 seconds – of fame after he was left speechless when a reporter asked him to defend hefty pay rises for top councillors has resigned, saying he wants to take responsibility for what happened.

He also told SVT about his long and very awkward silence on camera that his brain had simply blacked out after having worked for 13 hours straight and gone nine hours without food in the post-election frenzy.

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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