Economic policy

On 8 april the Government adopted an ordinance on rent rebates for certain vulnerable sectors for the period 1 January–31 March 2021. The adopted ordinance means that the rebate scheme enters into force and can be applied for as of 3 May. The decision follows directly from the approval of the rebate scheme by the European Commission last week and is based on an agreement between the governing parties, the Centre Party and the Liberal Party.

The Government today decided to introduce turnover-based support for trading partnerships in which at least one partner is a natural person. This support covers the period March 2020–February 2021 and can be applied for as of 29 March. Turnover-based support for trading partnerships is based on an agreement between the government parties, the Centre Party and the Liberal Party.

To mitigate the economic impact of the increasing number of COVID-19 cases, the Government has proposed that the State aid in support of certain commercial tenants receiving a rent rebate – introduced in spring 2020 – be reintroduced for a three-month period, January–March 2021. Today, the Government notified the support to the European Commission for approval. The Government intends to adopt the legal framework as soon as the support is approved by the Commission.

The Government previously announced that turnover-based support for sole traders would be extended until the end of April 2021. Today, the Government can announce that in connection with the extension of the turnover-based support for sole traders, a possibility will be introduced for sole traders who have received unemployment benefit during the support period in their application and sole traders who have taken parental leave or sick leave during the reference period to also access the extended turnover-based support.

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).

To mitigate the economic impacts of the increasing spread of the virus, the Government proposes that the State aid measure in support of certain commercial tenants receiving a rent rebate – introduced in spring 2020 – be reintroduced for January–March 2021, i.e. for a further three months. This measure is temporary and designed for companies in certain vulnerable customer-facing sectors that have been hit hard financially by the pandemic. The proposal for reintroducing this State aid measure is based on an agreement between the government parties, the Centre Party and the Liberal Party.

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.

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.

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.

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.