There is a clear risk that economic policy will be pushed far away from the centre if the Left Party and the Green Party gain a stronger position in politics, Anders Borg writes on DN Debatt.
If all proposals for higher benefits and taxes are implemented, the number of hours worked will fall by five per cent and employment will decline by around 130,000 people, according to Borg. In addition, social exclusion will increase by about the same number of people.
Sweden is therefore facing a choice between two economic models, he believes. One in which work, investment and productivity are at the centre, and one in which higher taxes, expanded transfers and shorter working hours are given greater weight.
