In Tuesday's ruling, the judges strike down two of the provisions in the controversial new minimum wage rules that were pushed through in the EU in 2022.
"We are cautiously positive about today's announcement, which shows that there are limits to how the EU can interfere with the Swedish model. But the best thing would have been for the entire directive to be declared invalid," comments Minister of Labor Johan Britz (L) via text message to TT.
The directive is intended to ensure that minimum wages are not set too low, but has met with protests from the Nordic countries where wages are traditionally set after negotiations between unions and business, rather than through legislation.
“Putting your foot down”
The Confederation of Swedish Enterprise had also hoped that the court would have declared the entire directive invalid. Deputy CEO Mattias Dahl is nevertheless satisfied.
"It sends a clear and good signal to the EU as a legislator to stay within its mandate. Now the issue has been legally investigated," says Deputy CEO Mattias Dahl.
Member of the European Parliament and former Deputy Minister of Labor Johan Danielsson (S) is on the same track.
"It's good that the court is so clearly putting its foot down, here but no further. It is important in the long term for us to be able to preserve our labor market model," he writes in a comment via text message.
Alone against
Sweden and Denmark were the only countries to vote against the legislation when it was introduced. Although the countries were granted exemptions from introducing statutory minimum wages, they still chose to take the issue to the European Court of Justice.
The court now chose to only strike down two parts of the directive.
On the one hand, it is considered wrong to list a number of criteria that must be taken into account by countries that have statutory minimum wages. On the other hand, a rule that prevents reductions in minimum wages is criticized.
Wiktor Nummelin/TT
Facts: EU on minimum wages
TT
The EU's new directive on minimum wages in the EU was pushed through in 2022 and has two main lines.
One concerns the minimum wages themselves, where countries that have systems where wages are set by law are urged to have clear criteria for how wages are calculated and updated. The other concerns increased support for the system of wage setting through collective bargaining between the social partners.
The first paragraph of the proposal already emphasizes that it is not about forcing a system of statutory minimum wages on countries.
Denmark and Sweden have nevertheless taken the issue to the EU Court of Justice to clarify how the EU has the right to decide in this area.
