Sweden is still in a low-conjuncture, which will be somewhat more prolonged than what the government has counted on as a result of the customs war.
Sweden is in a low-conjuncture, there is a waiting attitude. It is obvious that we will need to strengthen households in the future. We need to do what is required to get more people into work, says Svantesson at the press briefing.
Focus on households and support them and get more into the labor market. It is not time for tax increases, on the contrary, it will not contribute to higher growth, she continues.
Household consumption is still waiting. There may be a concern for one's own economy, or for losing one's job, means Svantesson.
Growth is hindered
The concern may increase if the uncertainty and unpredictability surrounding Donald Trump's - the US President - customs war and customs policy persists, according to the Minister of Finance.
It was a strongly contributing reason for the government to significantly reduce expectations for Swedish growth to 0.9 percent for this year, from a previous assumption of 2.1 percent, in its latest forecast, less than a month ago. There is a risk that the government may need to lower its figure for growth further in the forecast in about a month, towards the end of August.
The focus for the budget, which will begin to be negotiated in two weeks, is to strengthen families and ensure that more people get into work. In response to a question about how large the reform space is in next year's budget, Svantesson replies:
What I can state is that part of the reform space, unlike before, is mortgaged in the sense that we have placed a high priority on defense and the judicial system. It pushes aside some other things. But we will have a reform space.
Does not rule out
Strengthening families can be about reducing tax on work or electricity. There are many different ways and the government will return to the issue, she says.
Can it become relevant to raise child allowance?
I do not rule out anything. Exactly where we will end up, we will know when we have negotiated.
