Content about economic policy
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LGBTIQ and Russia on European Council agenda
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.
Economic recovery and foreign affairs at EU Summit
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.
Rapid economic recovery
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.
Sweden’s recovery plan within the EU Recovery and Resilience Facility
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 (2018 prices) in loans and grants to Member States. The main part of this will be channelled through the Recovery and Resilience Facility (RRF). On 28 May 2021, Sweden submitted its recovery plan to the EU.
Government parties, Centre Party and Liberal Party agree on supporting SAS to access liquidity
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.
Government loan to travel operators extended
The situation for the travel industry remains serious. Earlier in the pandemic, travellers sometimes accepted replacement holidays instead of a refund when package tours were cancelled due to the outbreak. Many of these replacement holidays are now also being cancelled. The Government is therefore working on a proposal that will give package tour operators the option of taking government loans to refund money to travellers. The proposal is based on an agreement between the government parties, the Centre Party and the Liberal Party.
Sweden’s Convergence Programme 2021
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.
The Government presents the 2021 Spring Fiscal Policy Bill
Today the Government presents the guidelines for economic policy and the Spring Amending Budget with further measures to limit the spread of the virus and alleviate the consequences of the pandemic for the economy and also to work Sweden out of the crisis. The proposals presented in connection with the Spring Fiscal Policy Bill total almost SEK 45 billion. The proposals are based on an agreement between the government parties, the Centre Party and the Liberal Party.
Upswing for resilient Swedish economy in 2021
Resilience in the Swedish economy is strong and the recovery will gather strength in the second half of 2021. As activity increases, the labour market will also gain strength. Despite this, the situation remains serious, especially for those whose position in the labour market is weak. This is clear from the Ministry of Finance’s most recent forecast, presented today by Minister for Finance Magdalena Andersson.