Economic policy
Economic policy is about ensuring the efficient functioning of the Swedish economy, moderating the ups and downs in the economy and redistributing economic resources between individuals and over time.
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News about economic policy
Stronger recovery in Swedish economy than expected
The Swedish economy is showing a stronger recovery than expected during the autumn. The labour market situation has also developed more positively compared with previous assessments. The employment rate is expected to be somewhat higher this year and next year compared with the assessment in the Budget Bill for 2021, while unemployment is expected to be lower. However, in the future, activity is expected to be hampered as a consequence of an increased spread of the COVID-19 virus and restrictions. This is clear from the Ministry of Finance’s most recent economic forecast, presented today by Minister for Finance Magdalena Andersson.
Budget Bill for 2021: Working Sweden out of the crisis – together
Photo: Ninni Andersson/Government Offices of Sweden The Government is presenting the Budget Bill for 2021 to the Riksdag today. The Government proposes a powerful, green restart package for the Swedish economy, but also long-term reforms that will help solve societal problems.
The Swedish fiscal policy framework
The fiscal policy framework is an instrument to ensure that fiscal policy is sustainable and transparent in the long term. Certain principles are regulated by law, while others are based on the practice that has gradually developed since the 1990s. In June 2016, a cross-party agreement was concluded on changes to the fiscal policy framework. In April 2018, the Government presented a written communication to the Riksdag containing a cohesive description of the framework.
Content about economic policy
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Magdalena Andersson takes over as Chair of the primary advisory body of the IMF
Today, Minister for Finance Magdalena Andersson takes over as Chair of the International Monetary and Financial Committee (IMFC), the primary advisory body of the International Monetary Fund (IMF). At a press conference with Managing Director of the IMF Kristalina Georgieva, Magdalena Andersson presented the direction of the IMFC’s work under her leadership as Chair.
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Digital press conference with Magdalena Andersson and Kristalina Georgieva, Managing Director of the IMF
On Monday, January 18, Minister for Finance Magdalena Andersson and Managing Director of the IMF Kristalina Georgieva will hold a joint digital press conference. The press conference will be held on Monday when Magdalena Andersson begins her tenure as chair of the International Monetary and Financial Committee (IMFC), the International Monetary Fund's primary advisory body.
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Enhanced turnover-based support for sole traders and turnover-based support for trading partnerships
As the Government previously announced, turnover-based support for sole traders – which currently applies for the period March to July 2020 – will be extended to include the period August 2020 to February 2021. The Government also previously announced the introduction of a specific turnover-based support targeting trading partnerships, including limited partnerships in which at least one partner is a natural person. This support will cover the same period, that is March 2020 to February 2021. Today, the Government can announce that the level of support for November 2020–February 2021 will be raised from 75 to 90 per cent. The Government’s proposal is based on an agreement between the government parties, the Centre Party and the Liberal Party.
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EU Recovery and Resilience Facility (RRF)
In July 2020, EU heads of state and government agreed on a recovery package to mitigate the effects of the crisis. The package, called NextGenerationEU, comprises EUR 750 billion in loans and grants to the Member States. The bulk of this will be channelled via the Recovery and Resilience Facility (RRF), but all the technical details are not yet fully negotiated.
· Article from Ministry of Finance
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Turnover-based support for sole traders and turn-over based support for trading partnerships extended for the period January and February 2021
The Government has announced further restrictions to reduce the spread of the COVID-19 virus. In order to save jobs and businesses, turn-over based support for sole traders is being extended for the period January and February 2021. The announced support intended for trading partnerships – including limited partnerships – where at least one partner is a natural person is being extended in a corresponding manner. The Government’s proposals are based on an agreement between the government parties, the Centre Party and the Liberal Party.
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Stronger recovery in Swedish economy than expected
The Swedish economy is showing a stronger recovery than expected during the autumn. The labour market situation has also developed more positively compared with previous assessments. The employment rate is expected to be somewhat higher this year and next year compared with the assessment in the Budget Bill for 2021, while unemployment is expected to be lower. However, in the future, activity is expected to be hampered as a consequence of an increased spread of the COVID-19 virus and restrictions. This is clear from the Ministry of Finance’s most recent economic forecast, presented today by Minister for Finance Magdalena Andersson.
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Climate, COVID-19 and the long-term budget at the European Council
The climate, COVID-19 and the long-term EU budget were among the issues in focus when Prime Minister Stefan Löfven met with his head of state and government colleagues at the European Council in Brussels on 10–11 December. The EU leaders also considered a number of foreign policy issues and the EU’s future relationship with the UK.
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COVID-19 and the climate at EU Summit
Prime Minister Stefan Löfven will meet his head of state and government colleagues at the European Council in Brussels on 10-11 December. The EU leaders’ agenda includes climate targets, coordination of the COVID-19 response and foreign policy issues. They will also discuss the EU’s long-term budget and the EU’s future relations with the UK.
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Additional crisis measures for businesses
Several measures taken to support Swedish jobs and businesses through the crisis will be extended. These include short-term lay-offs, deferral of tax payments, reorientation support and turnover-based support to sole traders. The proposals are based on an agreement between the government parties, the Centre Party and the Liberal Party.
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Turnover-based support to be introduced for sole traders
In light of the severe financial impact of COVID-19 on many sole traders, the Government today decided on turnover-based support for sole traders. The support enters into force on 9 November and builds on an agreement between the government parties, the Centre Party and the Liberal Party.