After the election, how your wallet could be affected by the red-green promises

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After the election, how your wallet could be affected by the red-green promises
Photo: Jessica Gow/TT

Those with higher incomes and larger savings will be able to keep less of their money, says Länsförsäkringar's private economist Stefan Westerberg.

The opposition won the election with 176 seats against the Tidö parties' 173, and Social Democrat leader Magdalena Andersson has invited the red-green party leaders to a meeting.

Some financial issues, such as the abolition of the job tax deduction, are up in the air. But others look more certain - such as an increase in child support.

I take that for granted. V, MP and S have all made proposals for it, says Westerberg.

The Left Party also wants to introduce a "baby allowance" of 15,000 kronor for first-time parents.

Electric cars and bus cards

The red-green parties went to the polls on a "broader electric car premium".

For example, the Center Party wants to introduce an electric car bonus of SEK 50,000 that can be used by up to 100,000 households.

"There are significantly more people than are covered by the government's current, narrowly designed support," the party writes .

According to the Swedish Environmental Protection Agency's statistics, which span from the introduction in March to September 6, 9,061 applications for electric car subsidies have been granted so far.

"I think it will become more expensive to own a petrol car, while electric cars can be rewarded. So there could definitely be an electric car boom," says Westerberg.

Public transport could become cheaper. The Swedish People's Party and the Green Party want to introduce a ticket that is valid on municipal and regional public transport throughout the country. The monthly cost for an adult should be under 500 kronor, according to the parties.

The government's temporary subsidy for public transport expires in December.

Possible bank tax

The election promises of the Tidö parties regarding tax cuts are not being fulfilled. For example, the Moderates and the Liberals want to introduce tax-free ISK savings of up to half a million kronor.

The Social Democrats instead want to introduce a tax on what the party calls “banks’ excess profits.” This would cost Swedes’ wallets, according to major bank SEB.

"If you tax something, you get less of it. There will be less profit from doing it and it will be more expensive for the consumer to consume," the bank's CEO Johan Torgeby told TT this summer, regarding a possible bank tax in the event of a change of government.

The question now is how the Social Democrats will get the Center Party on board.

"I don't dare to say whether it will happen or not. But since it is a fee imposed on banks, all else being equal, that cost will be passed on to the end consumer," says Stefan Westerberg.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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