The Swedish Government Wants To Out Of The Corona Crisis With Record Aid

The Swedish Government Wants To Out Of The Corona Crisis With Record Aid

The Swedish government wants to lead the domestic economy out of the corona crisis with record aid. For the coming year, an economic program worth 105 billion crowns (around 10.1 billion euros) is to be put together, government announced. It provides for tax cuts, but also for additional government spending. In the current year, the government expects a decline in gross domestic product of 4.6 percent, which means that Sweden will come through the crisis better than many other countries. For comparison: the federal government expects a minus of 5.8 percent for Germany. However, everything is by no means in line. The unemployment rate is currently 9.4 percent, well above the EU average of 7.2 percent. It is particularly high among young people and immigrants. Nevertheless, the government in Stockholm believes that a record level of impetus is necessary to cope with the consequences of the pandemic. "Together we will work on Sweden's way out of the crisis and build a more sustainable society," said a statement by the minority coalition of Social Democrats and Greens. The focus will be on job creation, social affairs and supporting the transition to a carbon-free future. In the end, the package should help create 75,000 new jobs and promote a more climate-friendly economy. "Economic policy is entering a new phase," said Treasury Secretary Magdalena Andersson. It is about a record-breaking budget to stimulate the Swedish economy again. The measures were coordinated with two small center-right parties. With parliamentary elections coming up this year, the longer-term policy remains unclear.