State takeover of municipal debts

The state is to take over a large part of the municipalities' debts, so that the municipalities can make long-term investments without raising taxes. This is proposed by one of the Social Democrats' working groups for new policy.

» Published: July 30 2024

State takeover of municipal debts
Photo: Nicklas Thegerström/TT

The party believes that a local societal lift is needed, but does not think that the state is helping enough for the municipalities to be able to handle new large establishments.

We want the state to take over a significant part of the municipal debt, says the party's business policy spokesperson Fredrik Olovsson at a press conference.

The municipalities' debts have increased sharply over the past decades, according to the party. It is estimated to be around 200 billion kronor that the state should take over in debt.

This would result in a better distribution between the municipality and the state. It would mean approximately 20,000 kronor per inhabitant in all municipalities in the country.

Lower interest rates

One argument for this is that the state pays lower interest rates over time than the municipalities. The state's borrowing would take place via the National Debt Office, and Olovsson's assessment is that it would take a few years to transfer the municipalities' loans.

The working group also proposes targeted support to certain municipalities that are facing major investments. In addition, a state-owned housing company that will build on establishment sites, a national establishment team that will help with major establishments, and a strategic "infrastructure pot" to strengthen, among other things, the railway.

Does not see wastefulness

Olovsson does not believe that the municipalities' growing debts are due to wastefulness.

This is an argument that is sometimes claimed, that there are a lot of wasteful municipalities. That is, those that have built schools and elderly care. That (wastefulness, editor's note) is an extremely small part of the debt that exists here.

The party set up eleven internal working groups after the election loss in 2022. Which proposals will become Social Democratic policy will be decided at the party's congress in 2025.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Blast Damages Malmö Apartment Gate;
1 MIN READ

Blast Damages Malmö Apartment Gate; Bomb Squad Investigates

Four Hospitalized After Serious Car
1 MIN READ

Four Hospitalized After Serious Car Rollover in Ydre, Sweden

Suspicious Object in Malmö Deemed
1 MIN READ

Suspicious Object in Malmö Deemed Harmless by Police

Lena Nyberg Takes Helm of
1 MIN READ

Lena Nyberg Takes Helm of Sami Truth Commission

Tony's Chocolonely Recalls Chocolate Over
1 MIN READ

Tony's Chocolonely Recalls Chocolate Over Stone Contamination Risk

Sweden Expands Conscription Eligibility with
1 MIN READ

Sweden Expands Conscription Eligibility with Streamlined Process

Suspect Detained in Uddevalla Mosque
1 MIN READ

Suspect Detained in Uddevalla Mosque Fire Investigation

Critics Urge Sweden to Scrap
2 MIN READ

Critics Urge Sweden to Scrap Proposal on Lifestyle-Based Permit Revocation

Swedes Enjoy Longer Lives but
2 MIN READ

Swedes Enjoy Longer Lives but Face Growing Health Inequality

Stockholm Region's Journalist Register Sparks
2 MIN READ

Stockholm Region's Journalist Register Sparks Privacy Concerns

Woman Hospitalized After Attempted Murder
1 MIN READ

Woman Hospitalized After Attempted Murder in Örsundsbro, Suspect Arrested

Journalist Joakim Medin Declares from
2 MIN READ

Journalist Joakim Medin Declares from Turkish Prison: Journalism Is Not a Crime

Fredrick Federley Eyes Return to
1 MIN READ

Fredrick Federley Eyes Return to Center Party Politics in Sweden

Kristersson: Swedish Efforts Intensify for
1 MIN READ

Kristersson: Swedish Efforts Intensify for Journalist's Release in Turkey

Nina Larsson Steps In as
2 MIN READ

Nina Larsson Steps In as Sweden's New Gender Equality Minister

75-Year-Old Woman Arrested in Ale
1 MIN READ

75-Year-Old Woman Arrested in Ale for Suspected Murder of Elderly Man

New Blood Marker Tracks Alzheimer's
2 MIN READ

New Blood Marker Tracks Alzheimer's Progression, Aiding Drug Approval

Stefan Löfven Leaves Facebook Citing
1 MIN READ

Stefan Löfven Leaves Facebook Citing Concerns Over Democracy

Sweden to Announce New Minister
1 MIN READ

Sweden to Announce New Minister for Gender Equality and Labor Market

Region Skåne to Pay 80
1 MIN READ

Region Skåne to Pay 80 Million Kronor in Ambulance Dispute Settlement

Greta Thunberg Removed by Police
1 MIN READ

Greta Thunberg Removed by Police During Stockholm Climate Protest

Man in His 50s Killed
1 MIN READ

Man in His 50s Killed by Falling Beam in Mölndal Workplace Accident

Swedish Teen Sentenced to 8
1 MIN READ

Swedish Teen Sentenced to 8 Years in Denmark for Attempted Murder

Sweden Considers Deportation for Misbehavior
3 MIN READ

Sweden Considers Deportation for Misbehavior Under New Proposal

Man Arrested in Norrköping Murder
1 MIN READ

Man Arrested in Norrköping Murder Investigation

Death in Fjärås Ruled Non-Criminal
1 MIN READ

Death in Fjärås Ruled Non-Criminal After Investigation

Swedish Armed Forces Ordered to
1 MIN READ

Swedish Armed Forces Ordered to Pay for PFAS Cleanup in Uppsala

Swedish Man Charged in Copenhagen
1 MIN READ

Swedish Man Charged in Copenhagen Murder Disguised as Courier

Gender Gap in Sick Leave:
3 MIN READ

Gender Gap in Sick Leave: Women Face Double Workload Challenges

Sweden's April Fools' Day: Elk
2 MIN READ

Sweden's April Fools' Day: Elk Cavalry and Studio Swap Pranks

Sweden Ends Spruce Bark Beetle
2 MIN READ

Sweden Ends Spruce Bark Beetle Control as Threat Diminishes

Drought Shifts Earth's Axis and
3 MIN READ

Drought Shifts Earth's Axis and Raises Sea Levels, Study Finds

Örebro Doctor Sentenced to 7
1 MIN READ

Örebro Doctor Sentenced to 7 Years for Sexual Assaults on Patients

Swedish Journalist's Detention in Turkey
1 MIN READ

Swedish Journalist's Detention in Turkey Raises Legal Concerns

Woman Hospitalized After Villa Fire
1 MIN READ

Woman Hospitalized After Villa Fire Near Älvsbyn

Sölvesborg Man in Custody for
1 MIN READ

Sölvesborg Man in Custody for Alleged Online Child Sex Crimes

Report Highlights High Rates of
1 MIN READ

Report Highlights High Rates of Relationship Violence Among Young Girls

Hedgehogs Reveal High Lead and
1 MIN READ

Hedgehogs Reveal High Lead and Pollutant Levels in Swedish Study

Skåne Region Ends Krys Contract,
1 MIN READ

Skåne Region Ends Krys Contract, Seeks 19 Million Kronor Refund

Summer House Buyers Urged to
3 MIN READ

Summer House Buyers Urged to Consider Climate Risks in Sweden