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Sweden — Government maps out path forward for exit from the crisis

15 April 2010

The Swedish government today publishes its Spring 2010 Fiscal Policy Bill In total, the Government is committing a further SEK 4.9 billion (500 million Euro) during 2010. The aim is to ensure that those who have suffered most from the crisis do not get left behind and to stimulate the demand for labour.

The Government is working to ensure that jobs return early in the recovery and to prevent bottlenecks arising that may prevent employment from growing. A series of labour market policy measures have already been implemented but they are now being further reinforced. Some of the measures proposed in the Spring Fiscal Policy Bill are:

  • a temporary shortening of the qualifying period for new start jobs for older people from 12 to 6 months, which will make it easier for older unemployed people to return to the labour market.
  • a temporary summer initiative for young people in school, in the form of summer jobs and summer school.
  • special action for the Vastra Gotaland region including more places in training schemes.
To further strengthen employment, certain planned infrastructure investments are also being brought forward. In addition, resources will be made available to enable several major infrastructure projects to be carried out over the next 10 years in Stockholm, Gothenburg, Sundsvall and Motala.

The economic recovery appears to be arriving sooner and turning out stronger than the Government estimated in the Budget Bill for 2010. Growth of 2.5% is expected this year, followed by 3.9% next year. Unemployment is expected to begin to decline and employment to increase in the course of this year.

Minister for Finance Anders Borg says "There are various indications that Sweden has coped with the crisis better than many other countries, thanks to responsible financial policies. But the economy is still fragile and certain groups have been hit hard by the crisis. Moreover, it is important to ensure that a high rate of unemployment does not become persistent. Consequently, in connection with this Spring Fiscal Policy Bill too, we are proposing a number of measures to continue to lessen the impact of the crisis and nurture economic recovery."
 
To read a Summary of the 2010 Spring Fiscal Policy Bill in English language please click here

 

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