The parties are pouring billions into the election campaign to support voters' wallets. But many economists are critical. There is a downside to all the promises, says Madelén Falkenhäll, economist at Swedbank.
Swedish politicsThe election campaign is in full swing and politicians are luring voters with lower taxes and fuller wallets. But economists say that is the wrong focus and that households are doing well enough. It has become a competition over different kinds of candy that I honestly think voters are tired of, says economist John Hassler.
BusinessThe government's new tax cut on gasoline and diesel is pure "gasoline populism," according to the Green Party. But the Social Democrats support the cut, despite the 7.7 billion price tag.
BusinessNordea, SBAB, Swedbank, Danske Bank - a series of major mortgage lenders - have raised fixed mortgage rates in recent days. Experts describe this as a result of the war premium that banks have to pay on their mortgage bonds after the US and Israel attacked Iran on February 28.
BusinessSweden should join the euro, some leading economists believe in a report, financed by Timbro, which will be presented on Monday.
BusinessNATO countries are in agreement. The requirement of 2 percent of GDP is increased to 5 percent. Sweden's parliament is unanimous, 300 billion will be borrowed to upgrade the defense. It is to impose a burden on future generations. They will have to pay both their own high defense expenditures but also a part of ours, says economics professor Lars Calmfors.
Swedish politicsThe Government's spring budget is cautious and does not take into account Donald Trump's tariff shock, leading economists believe. The ROT deduction may not be what one should focus on first, believes Lars Calmfors, professor emeritus, regarding the largest investment of 4 billion kronor.
BusinessIncreased taxes, deficit targets or a Swedish equivalent to Elon Musk's downsizing institute Doge? Tough choices and priorities are to be expected when Sweden needs to invest even more in defense. This is what some of the country's leading economists think.
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