Minister of Finance Magdalena Andersson (S) promises a 74 billion "vitamin injection" in the coming budget, which together with consumption-happy households provides strong growth in the economy. But she does not want to say about the risk of a government crisis or not. "It is a complicated parliamentary situation," she said.
Published: 26 August 2022, 17:28Minister of Finance Magdalena Andersson announces at its press conference in Harpsund about reforms of SEK 74 billion in the coming budget. "After two doses of vaccine, I think this will be a vitamin injection in the economy," she says. The National Institute of Economic Research wants to see room for reform of SEK 40 billion, but as I said, the government is almost doubling down. The reason is that one should not slow down too early, according to the Minister of Finance, which she believes happened during the financial crisis. "I do not want to make that mistake again," she says. At the same time, large parts of the economy go like the train. GDP is expected to grow by 4.4 per cent this year, followed by 3.5 per cent next year, and the recovery phase is the word for the day when the Minister of Finance will describe the situation. "Sweden's economy is back to the level we had before the crisis," says Magdalena Andersson. The Minister of Finance tracks one a very strong rise in household consumption by six tenths compared with the June forecast to 4.9 per cent next year. And she does not rule out the possibility that the shopping craze will be even stronger: Economically strong households with a pent-up desire to spend are listed as one of the so-called "risks on the upside" in the forecast. “You come out in a happy consumption acid. It can strengthen economic growth more, ”says Magdalena Andersson. Despite this, the view of unemployment is virtually unchanged – 8.8 per cent this year and 7.7 per cent next year. Central government debt as a share of GDP continues to fall, according to the forecast, and the negative structural deficit peaks at minus 1.2 per cent this year and then returns to zero. In the balance with so-called "downward risks" lies the advance of the delta virus, extreme weather events, bottlenecks, for example in the form of semiconductor shortages, she points out. How big a risk do you see for a government crisis this autumn or political turbulence?
"It is a complicated parliamentary situation in Sweden and it has been after the election. That has not changed since this summer's government crisis. I will not place a bet on one or the other ", she says to Di. Do you think it is appropriate for the next Prime Minister to back down from the demand to resign if the budget falls?
"How a new prime minister or prime ministerial candidate from S chooses to act in terms of the budget, that person must answer when that person is appointed," she says. Intensive work on the budget is currently underway. In order for the government's budget to pass the Riksdag, support from both the Center Party and the Left Party in the Riksdag is required. The work is complicated by the fact that the Center Party no longer has a budget cooperation with the government, nor does it tolerate the government negotiating with the Left Party. "We are now working on the basis of the conditions the Center Party has created, which means that the Center Party has a responsibility to make this process work," says Magdalena Andersson. At the same time, the Left Party, together with reforms of 25 billion, has published demands that if you reduce taxes, you must raise other taxes just as much. "There is no doubt that this is in contrast to the Center Party's desire to reduce taxes," says Magdalena Andersson. Linda Öhrn