Swedish Spring Fiscal Policy Bill 2013: Taking responsibility for jobs and stability

15 April 2013

In its 2013 Spring Fiscal Policy Bill, the Swedish Government proposes additional measures in education, work experience, infrastructure and regional development.

"There is a strong headwind from the global economy which is holding back the recovery in Sweden. Our strong position and the confidence in Sweden's public finances are making it possible to proceed with more measures to mitigate the impact of the international crisis on the labour market and support a gradual recovery", says Minister for Finance Anders Borg.

Growth in the Swedish economy slowed last year and is expected to be subdued in 2013. This has resulted in a weak labour market with rising unemployment. But the forecast is highly uncertain, not least because of the uncertainty surrounding the ability of the euro area to overcome its problems.

To avoid high unemployment becoming persistent, the Government is now proposing and announcing further initiatives:

• the number of vocational adult education places will increase by 7,000 in 2013 and 7,000 in 2014;
• the number of work experience and employment training places will increase by 8,000 during 2013 and 2014;
• the number of places on engineering and nursing programmes will increase by 1,400 in 2013 and 1,400 in 2014;
• measures for regional growth will be reinforced and redistributed so that SEK 40 million will be invested in 2013 and SEK 40 million in 2014; and
• funds will be redistributed in the area of infrastructure, which will provide an additional SEK 700 million for railway operations and maintenance in 2013.

Although a final assessment cannot be made before the Budget Bill in the autumn, the Government considers that there will also be some room to propose additional measures in the Budget Bill for 2014.

"The Government's goal is to strengthen the public finances as the economy recovers so as to achieve the surplus target. We will not deviate from this objective", says Mr Borg.

The Government's efforts will focus on:

• getting more people into work by tackling long-term unemployment, increasing the incentives to work and facilitating entry into the labour market for groups that are currently far from it;
• strengthening competitiveness by improving the education system, entrepreneurship and the business climate, as well as the mechanisms of the housing market;
• ensuring a stable financial system and improving the position of consumers in the financial market;
• working towards sustainable energy and climate systems; and
• creating cohesion in society and high-quality welfare through efforts to ensure effective health and social care and an efficient justice system.

Full press release

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