Financial markets

The Government has received another application for state aid to build new nuclear power reactors in Sweden. The application was submitted by Nordic Baseload Power for a project at Barsebäck in Kävlinge outside Malmö. This is the fourth such application received by the Government.

The Swedish capital market is increasingly seen as the most developed in the EU and somewhat of a role model. This memo seeks to summarise its key features. At the end, a simple checklist for evaluating capital markets-enhancing reform proposals is provided building on Sweden’s experiences.

A short summary of how Sweden's pension system works.

A new application for state aid to build nuclear power reactors has been submitted to the Government. The application was submitted by Studsvik, which is seeking to establish reactors in the municipalities of Nyköping and Valdermarsvik. This is the third application for state aid received by the Government.

The Government has appointed new Chairs of the AP2, AP3 and AP7 funds and a new vice chairman of AP7.

The Government has received another application for state aid to build new nuclear power in Sweden. The application was submitted by Blykalla, a company seeking to establish a new nuclear power plant in Norrsundet, outside Gävle. This is the second application for state aid received by the Government.

New nuclear power is a long-term undertaking for society. It requires investments from both the private sector and the state. In the Spring Amending Budget for 2026, the Government proposes state majority ownership of Videberg Kraft AB and that the state assumes a role in the financing of the future system for radioactive waste management and spent nuclear fuel by reducing risk for those who make the initial investments. Those who produce the waste should also continue to be responsible for their share of the costs.

On 17 May, Prime Minister Ulf Kristersson received Prime Minister of India Narendra Modi in Gothenburg. During the visit, the leaders held bilateral meetings and participated in discussions with European business leaders on innovation, climate and trade. HRH Crown Princess Victoria, Minister for Foreign Affairs Maria Malmer Stenergard, and India’s Minister for External Affairs Subrahmanyam Jaishankar also participated in the programme.

On 17 May, Prime Minister Ulf Kristersson will receive Prime Minister of India Narendra Modi in Gothenburg. During the visit, the leaders will hold bilateral meetings and participate in discussions with European business leaders on innovation and trade. Mr Kristersson and Mr Modi will also hold joint press statements, together with President of the European Commission Ursula von der Leyen. HRH The Crown Princess will also participate in the programme.

Prime Minister Ulf Kristersson received President of the European Parliament Roberta Metsola on Friday, 27 March. Together, the leaders visited Stockholm’s stock exchange, Nasdaq Stockholm, and discussed ways to strengthen the EU’s capital markets and competitiveness.

The Government has received the first application for state aid to build new nuclear power in Sweden. Videberg Kraft AB has applied for support to build new reactors on the Värö Peninsula at Ringhals. The company is backed by Vattenfall AB and several large Swedish industrial corporations under Industrikraft i Sverige AB.

The Government has adopted guidelines for the Swedish National Debt Office’s central government debt management in 2026. The decision does not involve any changes to the central government debt composition or term to maturity. However, the guidelines for next year clarify how the management of central government debt should be evaluated.

Expanding nuclear power will play a crucial role in enabling Sweden to reduce its domestic climate emissions and achieve the goal of net zero emissions. The Government proposes amendments to the Swedish Environmental Code that will permit new nuclear power plants on more coastal sites. Under the proposals, protection of natural and cultural heritage will be maintained. The proposed legislative amendments are now the subject of a consultation.

Sweden needs new nuclear power to cover energy needs, provide a secure supply of electricity to the national grid and carry out the energy transition. As of 1 August 2025, companies seeking to build reactors will be able to apply for state aid. The Government has now approved a new ordinance regulating the application process.

Sweden faces considerable problems with volatile electricity prices for households and businesses and imbalances in the electricity system. To deal with this, the fossil-free base load needs to be expanded. In March 2025, the Government adopted the Financing and risk sharing in new nuclear power Government Bill, which included proposals for state aid to companies that want to invest in nuclear reactors. The Riksdag has now decided to adopt the Government’s proposal.

In a government bill submitted to the Riksdag last week, a new Act is proposed concerning state aid for companies looking to invest in new nuclear power reactors. A memorandum that will be referred for consultation today proposes supplementary provisions on how companies’ applications for aid should be structured.

Integrating and further developing the European capital market is a priority for the European Union and for Sweden, as it could provide households with better returns on their savings and businesses with a more diversified set of sources for funding. Sweden has what is seen by many as a well-functioning and deep capital market. That was not always the case, and this article seeks to provide an assessment of the Swedish journey with the purpose of contributing to the ongoing European discussion. While there is no claim to portray the full story and all relevant aspects, the article seeks to outline some of the components that have been of great importance in bringing the Swedish capital market to the point where it is today.

Sweden is going to purchase hybrid bonds from the International Bank for Reconstruction and Development (IBRD) valued at approximately SEK 100 million. This investment is part of the Government’s strategy to modernise and streamline development assistance and promote sustainable economic development in partner countries.