Bloomberg News

Swedish Government Sees No Need for Broad Crisis Measures

April 13, 2012

The Swedish government sees no need for “broad crisis measures” to support the export-dependent Nordic nation’s slowing economy.

The minority-government will prioritize measures to cut youth unemployment and joblessness among immigrants, as well as improve education and health care in next year’s budget, the leaders of the four coalition parties said in an opinion piece published today in Dagens Nyheter. It wants to raise the competitiveness of Swedish companies by cutting corporate taxes, which it last month signaled may be lowered by about 2 percentage points from 26.3 percent next year.

“The economic situation seems to be such that there is no need for broad crisis measures,” Prime Minister Fredrik Reinfeldt and the three other party leaders in the coalition said. “It’s now about devoting the limited room for new reforms to measures that prevent unemployment from remaining high, to secure a stable and broad recovery and to reforms that produce a lasting, increased employment, an improved economic standard for vulnerable groups and a stronger welfare.”

The government will publish its spring budget on April 16. The supplemental proposal offers broad policy outlines and provides updated economic forecasts. Most major initiatives are published in the main budget bill issued in the second half of the year.

Finance Minister Anders Borg in February said economic growth may slow to about 0.5 percent this year from 3.9 percent in 2011, while Danske Bank A/S last week predicted a 0.5 percent contraction. Sweden’s economy is struggling with slowing export demand. About 70 percent of its sales abroad go to Europe, which is suffering from a public debt crisis.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman in Stockholm at jbergman@bloomberg.net


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