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During the spring, it was surprising how the parties in the Riksdag cooperated to quickly implement various measures to deal with the crisis in the crown.
But that unit is just a memory today.
On Monday, the government presented the fall budget, historically in scope, with up to SEK 105 billion in investments to revive the Swedish economy and save jobs.
Finance Minister Magdalena Andersson (S) was pleased when she presented the budget. And, of course, the Social Democrats have exceeded most of their priorities. Large financial contributions to well-being, increased pensions, and continually increasing unemployment insurance are perhaps the most important parts.
S is forced to pass several tax cuts
But to appeal to the Center Party and liberals, the Social Democrats have also been forced to let go of the tax cuts that they had previously fiercely opposed. One of these measures is the reduction of employer contributions for young people, which has been promoted by the Center Party, and another is a new variant of the deduction of the employment tax, which the liberals have promoted in budget negotiations.
The Green Party can also boast about climate investments, including a new deduction for green investments. Unsurprisingly, spokesman Per Bolund calls the budget a “game changer” for the climate.
Therefore, all parties involved in the negotiations appear to be extremely pleased on this day. And of course. Never before have four parties had such a rewarding task as being able to set aside SEK 105 billion in a single budget. Therefore, there has been room for everyone to overcome their heart problems, preferably with reference to the pandemic.
“An attempt to cheer up the January holidays”
Therefore, this budget should also be seen as an attempt to keep the January holidays themselves in a good mood. For Prime Minister Stefan Löfven, it is an important ingredient in the ambition of trying to connect with the two bourgeois center parties in the long term. By keeping them in a good mood, Löfven hopes he can deepen his January cooperation and, in the long run, keep right-wing parties in Swedish politics out of power.
It will also be hard to find direct losers in this budget, where a historic $ 1 billion churn means a plus for most of the people involved, companies, employees and retirees alike.
But the verdict of history may still be harsh. If economic development is worse than the government predicts, the budget runs the risk of paving the way for long-term deficits in the Swedish economy. The path back to balance and surplus in the government budget rests on the fact that there will be no further crises in the near future, that the world economy is accelerating, and that the corona pandemic is essentially a closed chapter.
Historical loan amounts
This year’s budget bill may also be the end of the long period of strict economic budget policy that followed the crisis of the 1990s. With reference to the corona pandemic, historic sums are now being borrowed to implement government measures. For those who have ever violated the strict requirements of budget discipline, it can be tempting to continue down the road.
The opposition in the Riksdag was also tough in its criticism of the government budget during Monday’s debate. The Left Party criticized the government for borrowing money instead of raising taxes for the rich. The moderates, on the other hand, accused the government of putting the Swedish people into debt without solving the problems of crime and unemployment. A recurring theme in criticism is that the budget is certainly historical in scope, but that it is diverse in terms of both content and focus.
So while the parties agreed a lot this spring when the acute crisis was fought, the disagreement today is significant about which path Sweden should take to revive the economy, contain unemployment and fight crime.
