Economic policy

On Midsummer’s Eve, Prime Minister Stefan Löfven took part in a video conference of EU heads of state and government. The main topic was the long-term EU budget for 2021–2027 and the proposed recovery package.

On Midsummer’s Eve, Prime Minister Stefan Löfven will take part in a video conference with his fellow EU heads of state and government. The discussion will mainly focus on the EU long-term budget for 2021–2027, but Brexit will also be brought up.

The COVID-19 pandemic has had a serious impact on economic growth, both in Sweden and the rest of the world. GDP growth has been revised downwards compared with the assessment made in the Spring Fiscal Policy Bill. However, recently there have been some signs of recovery, albeit from a very low level and with great uncertainty. This is clear from the Ministry of Finance’s most recent economic forecast, presented today by Minister for Finance Magdalena Andersson.

The Government proposes that the Riksdag authorise the Government to take part on behalf of the State in a recapitalisation of SAS AB (SAS) with an amount totalling SEK 5 billion at most. SAS is important to meeting society’s fundamental needs in terms of accessibility by air travel in Sweden, Denmark and Norway. This authorisation means that the Swedish State will be given a mandate to take the measures necessary to enable the State’s participation in a recapitalisation of SAS. If the Swedish State is to take part in a recapitalisation, the Government will work to ensure that SAS sets new ambitious goals to reduce emissions. Participation of the Swedish State also requires approval by the European Commission.

The Government proposes a capital injection of SEK 3 150 million to Swedavia AB in the amending budget to be presented to the Riksdag today. This capital injection will enable the Government to guarantee a state aviation network with good accessibility throughout the country.

The Government proposes a capital injection of SEK 150 million to Lernia AB in the amending budget to be presented to the Riksdag today. This capital injection will give Lernia the conditions to strengthen its financial standing to be able to continue its activities in the area of adult education and staffing.

To mitigate the economic effects on society of the COVID-19 outbreak, several measures have been taken. The measures are intended to provide greater security for those affected by the pandemic by limiting the spread of the virus, combating the effects on businesses and jobs and providing financial security and transition opportunities for those who become unemployed. They are also intended to create the conditions for recovery after the crisis.

Together with the Centre Party and the Liberal Party, the Government is proposing an additional SEK 400 million for Almi Invest. The additional funding is aimed at bridging the crisis in small innovative businesses and avoiding the loss of structural capital and intangible assets in the life science sector and others.

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.

As a consequence of the COVID-19 pandemic, the Government, the Centre Party and the Liberal Party are today presenting new measures. A boost for care of the elderly is being implemented that means that employees in care of the elderly will be offered paid education and training during working hours. This will lead to more permanent positions.