"We as a country are not in a major economic crisis right now. But we are in a very prolonged recession," she says at a press conference.
Elisabeth Svantesson will present the additional amending budget that the government is presenting on Wednesday because of the war in the Middle East. In principle, all measures are already known and have been presented by the government at various press conferences.
In total, the crisis package includes SEK 17.5 billion, of which the largest part goes to further reduced fuel taxes. There is also support for public transport, the aviation industry and agriculture.
Heavy criticism
The government has pointed out that households have been affected by high fuel prices and are concerned about the future. Although Sweden is in a better position than many other countries, this concern could affect the willingness to consume and thereby further dampen the recovery in the Swedish economy.
But the support measures are financed with loans, and the Swedish Fiscal Policy Council, among others, has been critical, calling this type of intervention "bad economic policy." According to the council, the risk is that a new norm will be established where politics steps in and compensates households every time prices rise.
Svantesson calls the criticism "lazy" and says the council does not take into account the reality we now face.
"It is for times like these that we should use the strength of the economy," she says.
The Minister of Finance believes that the measures come at the right time and she also points out that they are temporary and targeted.
"Not everyone may recognize that there is an energy crisis in the world. It is also the case that we have partially succeeded in what we have been saying all along: building protective walls to make things as easy as possible for the Swedish people."
“Not enough”
The idea is that the crisis package will be hammered out before the Riksdag's summer recess.
However, the Social Democrats believe that Sweden needs "long-term and responsible" economic reforms instead.
"Throughout the entire term of office, the government and the SD have pursued a failed economic policy that has not given ordinary people the support they needed in economically tough times. Against this background, it is not enough, just a few months before the election, to present unfunded proposals that are introduced shortly before the election and expire shortly afterwards," says Mikael Damberg (S).
The government's additional amending budget totals SEK 17.5 billion.
SEK 7.7 billion will go towards reduced taxes on gasoline and diesel for five months, from July through November.
SEK 6.5 billion will go to public transport and is intended to halve the prices of monthly passes during the second half of this year.
SEK 1.6 billion will go to agricultural companies. In addition, commercial fishing and aquaculture will receive SEK 29 million.
SEK 500 million goes to the aviation industry.
SEK 1 billion is being spent to cover the costs of the previously announced electricity subsidy, which has become more expensive than estimated.
All measures are temporary.
