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What is it that makes Magdalena Andersson so happy?
Although it presents proposals that the party has spent two election campaigns crocheting, it has managed to reshape and complement them in such a way that the budget now benefits low and middle income groups. Therefore, it is not a policy that primarily benefits people with high incomes. Then, of course, she is glad that the budget negotiations have gone to fruition and the January cooperation continues, there have been difficult disagreements between the parties.
Does this mean that the Social Democrats are now giving up their opposition to tax cuts?
No. The Social Democrats scolded the entire 2014 election campaign for the reduction in employer contributions for young people that the Reinfeldt government implemented. According to S, it was an ineffective stimulus that did not provide many new jobs, and therefore the tax money was misused. Now Magdalena Andersson is doing the same. At today’s press conference, she declined to answer the question of how many jobs you can think the reduced employer contribution will create this time.
During the last election campaign, the Social Democrats said that welfare is more important than tax cuts. SEK 30 billion is now being used for tax cuts, which, of course, could have been used for even bigger social investments. Some tax cuts are temporary, but most will stick and reduce the scope for reform in the future.
What have the Center Party and the Liberals had to give up?
Both have advocated for a line of work with lower unemployment insurance and health insurance. Increase people’s motivation to look for work, with your point of view. The government is now spending approximately SEK 5 billion per year for the next two years on higher compensation for the unemployed compared to before the crisis. The deduction from the waived qualification period for the first day of illness will also continue for some time.
The defense negotiations were very difficult. The January parties were not prepared to meet with the moderates and Christian Democrats so that Sweden can make a new broad-based defense decision.
The Public Ministry, the Economic Crimes Authority and the Swedish Courts do not receive initiatives similar to those received by the police, which is particularly controversial when the fight against crime is at the center of the political debate.
Now the state budget runs a large deficit and almost all the money for new spending is borrowed. How long will it continue?
The government and its coalition parties plan to continue borrowing for stimulus packages until election year 2022. After that, the state budget will run into surplus again, according to the plan.
The deep economic crisis has caused all Swedish political parties to completely change when it comes to budgetary discipline. No party wants to finance its reforms with savings or tax increases, and so far no party has wanted to be more frugal. There is no opposition to borrowing so much money, the criticism is about how the money is used.
Read more:
This is how budgeting affects your personal finances
Quick Guide: Four Things You Need to Know About Budgeting
Billions of Investment in Jobs and Fall Budget Adjustment
DN Political Reporters Solve Fall Budget
