Latest news with #Svantesson
Euractiv
10-07-2025
- Business
- Euractiv
Sweden rejects EU plan to fund budget with tobacco tax
Swedish Finance Minister Elisabeth Svantesson has strongly opposed an EU proposal to use revenue from higher tobacco taxes to help fund the bloc's next long-term budget, calling it "completely unacceptable". The proposal, referenced in a document from Germany's International Affairs Liaison Office in Brussels and submitted to the German parliament, suggests new EU revenue sources for the 2028–2034 budget could include levies on electronic waste and tobacco. Though not yet officially confirmed by the European Commission, the idea adds to growing pressure from at least 15 EU member states to raise excise duties on tobacco products. As Euractiv reported last month, the European Commission is considering a 139% tax hike on cigarettes, along with steeper levies on alternative products such as e-cigarettes, nicotine pouches, and heated tobacco. Sweden now joins Italy, Greece, Romania, and Bulgaria in opposing the move, primarily to defend snus – a moist tobacco pouch banned in the EU since 1992 but legal in Sweden under an EU accession treaty exemption, which allows domestic sale only if it is not marketed elsewhere in the bloc. In a post on X, Svantesson called the proposal would result in 'a very significant tax increase on white snus,' and that the Commission wants the tax revenue 'to go to the EU and not to Sweden.' She said she had raised the issue with Commissioner for Climate, Net Zero and Clean Growth, Wopke Hoekstra, who is also responsible for EU tax matters and pledged to 'continue to fight for Swedish snus.' Sweden has positioned itself as a model for tobacco harm reduction, citing a smoking rate of just 5% and a decline in smoking-related cancers.
Reuters
24-06-2025
- Business
- Reuters
Sweden cuts 2025 growth forecast again due to global uncertainty
STOCKHOLM, June 24 (Reuters) - The Swedish government lowered its GDP growth forecast for 2025 on Tuesday to 0.9%, while raising the outlook for 2026 to 2.6%. Its latest forecast, given in May, was for growth of 1.8% this year and 2.3% in 2026. "The recovery that began in the second half of 2024 has stalled, and the Swedish economy is in a prolonged downturn, largely due to increased uncertainty in the world," the Finance Ministry said in a statement. "However, rising real wages and lower interest rates suggest that the recovery will gain momentum in the second half of 2025," it added. In May, Svantesson cut the GDP forecast for 2025 from 2.1% blaming U.S. President Donald Trump's on-again, off-again tariffs for increasing geopolitical uncertainty and leading businesses and households to hold off on new spending. The central bank has a forecast for growth this year of 1.2% while leading think-tank NIER's latest outlook sees GDP expanding 0.9%. Earlier this month, the central bank cut its key interest rate to 2.00% from 2.25% and said that, with price pressures weak, it may ease further before the end of the year to boost sluggish growth. Gross domestic product shrank 0.2% in the three months to March 31 on a quarterly basis. In 2024, GDP growth was 1.0%.
Local Sweden
15-04-2025
- Business
- Local Sweden
Sweden was on the road to economic recovery
The government expects Swedish economic recovery to be delayed by at least half a year as a result of high US tariffs and the global trade war, Finance Minister Elisabeth Svantesson told a press conference announcing Sweden's spring amendment budget. Advertisement "We had good conditions for kickstarting the economy, but then this happened, which we've spoken about a lot ‒ the trade war materialised," Svantesson said, while adding that President Donald Trump's actions have damaged trust in the US. "It will take a lot of time to rebuild that trust," she added. She also expressed disappointment in the US' treatment of its allies and trade partners. "If I'm being honest, it's sad that one of our partners, which we hope the US will be for the long-term, is treating other countries, which it should be allied with, and who are important trade partners, in this way," she added. "It doesn't benefit anyone, on the contrary it makes the situation worse for the vast majority." "What we're experiencing now is something we've never seen before." According to Svantesson, the US' decision to raise tariffs has essentially broken the positive trend in the economy which began at the end of last year. "That doesn't mean it won't come at the end of this year," she said, "but there's no doubt that it will inhibit growth." Despite this, Sweden has stable finances, she added. "Sweden is in a fantastic position, the financial framework that was put into place in Göran Persson's era has put us in an unbelievably strong position." Göran Persson, a Social Democrat, was Sweden's finance minister between 1994 and 1996, later becoming prime minister between 1996 and 2006. He created a financial framework with strict rules for the budget process, limits on spending and a surplus target of 1 percent. This means among other things that Sweden has comparatively low government debt compared to similar countries. Advertisement The spring amendment budget (vårändringsbudgeten) is usually mainly used to tweak or add bits and pieces to Sweden's main annual budget, which was presented last autumn. This year's spring budget includes proposals amounting to 11.5 billion kronor. The biggest post is an 4.35 billion kronor increase to the ROT tax reduction which currently allows households to claim back 30 percent of the cost of labour on maintenance work such as repairs, conversions and extensions. Under the new proposal, the ROT reduction will be increased temporarily to 50 percent from May 12th until the end of the year, which the government hopes will boost the economy by encouraging construction and renovation work. This will take up 40 percent of the budget. There are also posts on defence, security, increasing study places on vocational courses in order to get more people into work, increasing the number of spaces in prisons and detention centres and preventing youth crime. "In uncertain and worrying times, Sweden stands strong," Svantesson wrote in a statement. "With world class public finances, the government can submit a spring budget that supports the economy while investing in safety and security. Step by step we are building a stronger and safer Sweden, not only for today but also for our children and grandchildren."
Reuters
15-04-2025
- Business
- Reuters
Swedish spring budget pledges $1.2 bln in extra spending
STOCKHOLM, April 15(Reuters) - Sweden's government said on Tuesday it will raise spending by around 11.5 billion Swedish crowns ($1.18 billion) this year, to support economic recovery under threat from global trade friction. "The US decision on significantly raised tariffs has caused Sweden is on stable economic ground and able to take further action should the need arise," Finance Minister Elisabeth Svantesson said in a statement. Svantesson had already warned that economic growth would be negatively affected by uncertainty surrounding the effects of on-again, off-again tariffs announced by U.S. President Donald Trump.
Reuters
19-03-2025
- Business
- Reuters
Swedish government lifts inflation outlook amid economic uncertainty
STOCKHOLM, March 19 (Reuters) - Sweden's right-wing government on Wednesday hiked its forecast for inflation this year and said it would monitor the development of price pressures as the economy slowly recovered against a backdrop of global uncertainty. The government said in a statement it sees headline inflation at 2.5% this year and 1.9% in 2026, up from its December forecasts of 2.0% and 1.8%, respectively. It also slightly raised its growth forecast for this and next year. here. Finance Minister Elisabeth Svantesson said less than a year ago that the battle to push back inflation had been won after price rises began slowing from double-digit highs hit during the global post-pandemic surge in costs. Data in the early months of this year has cast some doubts on that assertion with inflation coming in higher than expected and well above the central bank's 2% target, undermining expectations the Riksbank might cut rates further this year. Svantesson told a press conference she stuck by her statement on inflation from last year. "But of course we will keep our eyes on the development of inflation in the months ahead." With growth in the Swedish economy yet to fully recover and unemployment running high against a backdrop of global trade tensions, both monetary and fiscal policy makers are left with an uncertain outlook for the months ahead. "The conditions abroad are brutally uncertain," Svantesson said. Earlier on Wednesday, a survey showed a broad measure of inflation expectations one year ahead rose sharply though they saw a more limited rise in the five-year interval. The Riksbank is due to present its latest rate decision on Thursday and is expected to keep its key policy rate unchanged.
