Government forecasts SEK 50bn for post-election reforms

Sweden's Government says the next administration could spend SEK 50 billion on reforms without matching tax rises or cuts.

The Government forecast, published on Thursday, covers the next four-year term and excludes new defence spending and support for Ukraine. It is an estimate of room for unfunded reforms, not money assigned to any policy.

Finance Minister Elisabeth Svantesson said stronger household consumption and business investment were driving the recovery. The Government expects unemployment to fall gradually and inflation to settle around the Riksbank's target during 2027.

Sveriges Radio reported that gross domestic product is forecast to grow 2.5% next year. The Government also identified higher energy prices linked to the Middle East conflict and European heatwaves as risks to inflation and growth.

The opposition challenged the estimate. Center Party finance spokesman Martin Ådahl questioned its reliability, while the Left Party's Ida Gabrielsson said the Moderates were promising reforms they could not finance, according to Sveriges Radio. Neither response set out a competing figure.

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