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The LO Criticizes Agreement on Surplus Target

The agreement on the abolished surplus target in the state's finances is met with criticism from trade union quarters. The Swedish Trade Union Confederation (LO) wants to see a larger scope for government borrowing – and the Building Workers' Youth Union is directing demands for resignation towards the Social Democrats.

» Published: 17 October 2024

The LO Criticizes Agreement on Surplus Target
Photo: Anders Wiklund/TT

Six of the eight parties in the Riksdag have agreed to abolish the so-called surplus target in the state finances, and instead introduce a balance target in 2027.

The new framework is expected to release approximately 25 billion kronor extra for budget investments per year.

Too tight, thinks LO, which had wanted to see extended opportunities for the state to borrow money for, among other things, infrastructure. In the current agreement, the so-called debt anchor is retained, i.e. that the gross debt should be 35 percent of GDP.

Fix the Acute

We think that over time, you can have a certain deficit without it becoming a problem, says Torbjörn Hållö, chief economist at LO.

Initially, you should be able to borrow quite a lot of money to fix what is most acute.

Only the Left Party and the Green Party are reserving themselves against the proposal, which has been prepared in a special committee. The trade union Byggnads youth union, Unga byggare, is directing criticism at the Social Democrats for the agreement with the Tidö parties and the Center Party.

Criticizes S

"Has social democracy agreed on a balance target, then they have screwed over members and Sweden's workers" writes Unga byggare, among other things, on their Instagram page. The union also wants "involved" persons to resign.

It's completely outrageous that they choose to do this, and then the demand for resignation is completely reasonable, says Unga byggare's chairman Cajsa Holmqvist to ETC.

Torbjörn Hållö at LO does not go as far.

I cannot criticize the Social Democrats in that way, he says.

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By TTThis article has been altered and translated by Sweden Herald

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