Economic policy

The Stability and Growth Pact is a set of rules for coordinating fiscal policy between EU Member States. The purpose of these rules is to ensure sound public finances. Every April, Member States are to submit stability and convergence programmes. Sweden and other Member States that have not adopted the euro submit convergence programmes, whereas Member States that have adopted the euro submit stability programmes. The programmes are used by the Commission and the Council in their assessment of Member States’ fiscal policies and situations.

Today, the Government is presenting the 2022 Spring Fiscal Policy Bill and the Spring Amending Budget for 2022. In light of the deteriorating security situation, the Government is presenting a budget to strengthen Sweden that includes both immediate investment and long-term measures to address societal challenges, at a total of SEK 35.4 billion.

Today, the Government is presenting the 2022 Spring Fiscal Policy Bill and the Spring Amending Budget for 2022. In light of the deteriorating security situation, the Government is presenting a budget to strengthen Sweden that includes both immediate investment and long-term measures to address societal challenges.

Today, Minister for Finance Mikael Damberg presents the Ministry of Finance’s latest economic forecast. The Swedish economy is expected to grow by 3.1 per cent this year, a downward revision of 0.3 percentage points compared with the previous forecast. This is because Russia’s invasion of Ukraine impacts economic growth.

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 main part of this will be channelled through the Recovery and Resilience Facility (RRF).

The European Council meeting of 24–25 March, one month after Russia began its aggression against Ukraine, focused on the conflict and consequences for the EU. The US President attended the meeting for talks on Thursday evening. On Friday the focus was on Europe’s strategic dependence on Russian fossil fuels, the high energy prices in the EU and the green transition.

Russia’s illegal, unprovoked and unjustifiable invasion of Ukraine has led to a deterioration in the security situation in Sweden’s neighbourhood and contributed to exceptionally high electricity prices. The Government’s response is based on three important principles: support to Ukraine, sanctions against Russia and strengthening Sweden. Therefore, the Government today adopted a fifth additional amending budget to strengthen Sweden by providing more funding to Sweden’s military defence and temporary financial compensatory payments to households for high electricity prices. These measures have been presented previously.

Russia’s invasion of Ukraine has led to rising fuel and electricity prices. To strengthen Sweden in this extraordinary situation, the Government is presenting a package of measures with both short- and long-term investments. The package includes reduced fuel taxes, a new compensatory payment for fuel costs for private individuals who own cars, increased housing allowance for families with children and a new travel deduction system. Minister for Finance Mikael Damberg presented this package at a press conference today

Heads of state and government from the EU and the African Union (AU) will meet in Brussels on 17–18 February. It is the seventh time the EU and AU leaders will meet. The aim is to establish foundations for a renewed and deepened partnership between the two unions. The leaders are expected to adopt a joint declaration on closer cooperation in a range of areas. Prime Minister Magdalena Andersson will represent Sweden.

Today, Minister for Finance Mikael Damberg presents the Ministry of Finance’s latest forecast for the economic situation. The Swedish economy is expected to grow by 4.9 per cent this year, an upward revision of 0.5 percentage points compared with the previous forecast. Sweden’s GDP is back at the levels forecast before the crisis.

Since the infection started to spread, the Government and the Riksdag have taken a large number of measures to safeguard people’s lives, health and livelihoods. At the same time a powerful green restart of the Swedish economy is being implemented. In all, the economic measures taken are worth almost SEK 400 billion for 2020 and 2021. This corresponds to around SEK 40 000 per inhabitant. In addition, around SEK 1 000 billion has been made available in various forms of loans and guarantees.

The Government is presenting the Budget Bill for 2022 to the Riksdag today. In it, the Government proposes measures to accelerate the climate transition, get more people into work, strengthen the welfare system and make Sweden a safe country for all. In total, reforms worth approximately SEK 74 billion are involved.

The Government on instructed the Swedish Tax Agency and Tillväxtverket (the Swedish Agency for Economic and Regional Growth) to make preparations so that as of 1 April 2022, the Tax Agency can be the managing authority for Tillväxtverket’s currently responsibilities under the Act on aid in the event of short-time work.

Today, Minister for Finance Magdalena Andersson presents the Ministry of Finance’s latest economic forecast and the direction of the central government budget for next year. The Ministry of Finance forecasts growth of 4.4 per cent this year and 3.5 per cent next year.

Discussions on the situation in Russia and how the EU should manage it, along with LGBTIQ issues, dominated the EU summit on 24–25 June. Prime Minister Stefan Löfven and other EU leaders also addressed the COVID-19 situation and the economic recovery.

When the EU’s heads of state and government meet in Brussels on 24–25 June, they will discuss the economic situation in the EU, migration and a number of foreign policy issues. They will also look at activities related to COVID-19. Prime Minister Stefan Löfven and his colleagues will kick off the summit with a working lunch with UN Secretary-General Antonio Guterres.

The Swedish economy is recovering rapidly after the deep downturn last year. The Ministry of Finance’s latest forecast calls for GDP to grow by 4.7 per cent this year, which is 1.5 percentage points higher than in the forecast presented in connection with the Spring Budget in April. Public finances are also expected to be stronger than in the previous forecast.

The government parties, the Centre Party and the Liberal Party have agreed on supporting SAS to access liquidity equivalent to SEK 1.5 billion. This support from the Swedish State is subject to the European Commission’s approval of the measures and corresponding support from the Danish State.