Sweden heading for derailing

Infrastructure Sweden’s roads, bridges, and rail network don’t measure up. Inadequate investment in infrastructure hampers growth, raising calls from the Swedish business sector for forceful action. "A reliable rail system is imperative for us to compete internationally," states Helena Sjögren Advisor at Skogsindustrierna, the Swedish Forest Industries Federation.

"We can’t let go on wage development"

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Collective bargaining 2011-2012 A newly published report from the Confederation of Swedish Enterprise describes how Sweden may be heading for a crisis similar to the 1990s. The financial crisis at that time was deepened by run-away wage growth, which caused intractably high unemployment. "I’m concerned that we might return to a situation where we lose our hold on wage development," says Christer Ågren.

The right skills found on other side of globe

Labour migration Auto retailer Din Bil Gruppen in Sweden has long had an acute need to hire auto mechanics, but gave up trying to find the right skills in the country. “Over the last two years, we’ve recruited some 20 auto mechanics from as far away as Russia and Australia, then we teach them Swedish on our own”, commented John Rönnmark, MD at the company.

Tear away trade barriers between the EU and USA

Commentary At the close of 2011, the EU and the USA took an historic step towards eliminating customs duties and other trade barriers between each other. Now, this important agreement must be acted on, agrees the entire European business sector, writes Kenneth Bengtsson, Board Chair for the Confederation of Swedish Enterprise.

Youth unemployment is the most important issue for 2012

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Commentary It’s time to take seriously on Sweden’s greatest societal problem, but it won’t be easy. It will take political courage to realise the idea that Sweden can actually become a better country for coming generations.

"The young must be prepared better for working life"

Commentary Youth unemployment in Sweden is among the highest in Europe. The share of unemployed youth, aged 15 to 24, totalled a remarkably high 28.6 percent in June 2011, according to the national statistics agency, Statistics Sweden. At the same time, companies are crying out for skilled workers. In the current economic crisis and business downturn, youth have been hit particularly hard.

Sweden inspires when England starts ‘free schools’

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Education sector Britain is seeing the establishment of free schools patterned after the Swedish model for non-selective, state-funded independent schools. Generally, the Swedish model involves tax funding of a unit grant to schools for each student attending, regardless whether the school is run by the local government or privately, as long as the school meets teaching and open selection criteria enforced by the Swedish National Agency for Education. Inspired by this model, the British conservative led government has passed a similar legal structure for schools in the UK, which can be an opening for Swedish private school providers to export their know-how.

The Euro-zone drags on Swedish Economy

Business cycle The Swedish central bank forecasts a slowing in the Swedish Economy due to weakness in the euro area. Meanwhile the Swedish Trade Council, also forecasts poor economic development in important trading partners. Not least, the Euro zone is expected to tip into recession, with two consecutive quarters of negative growth. With exports standing for 50 percent of GNP, Sweden will be strongly affected.

Rebound forecasted for business cycle in 2014

ECONOMICCYCLE Stefan Fölster, Chief Economist at the Confederation of Swedish Enterprise, notes that the previous economic forecast produced by the Confederation was the most pessimistic on the market. This time the new Confederation forecast matches most other market assessments, since the others have now chosen to accept the more negative outlook he has predicted.

Changing auditing rules will burden business

COMMENTARY The current EU proposal to change auditing rules has weaknesses. Mandatory rotation, mandatory tendering, and prohibition on non-audit services to audit clients means increase costs for companies.

Market valued at SEK 820 billion

Public sector services National, county and municipal governments in Sweden publically procure huge amounts of both goods and services. But how large this figure really is has never been fully estimated. The generally accepted figure has been some SEK 500 billion annually. But recent findings show it is higher—up to SEK 820 billion, according to publication DagensSamhälle.

Shaky prices with new electric power pricing zones

Commentary Consumers currently pay as much as SEK 0.30 per kWh more (including tax effects) in the southern Skåne region than those in northern Sweden. This significantly exceeds expectations for the four new price ‘bidding areas’ recently implemented in Sweden. Consumers are protesting, writes Maria Sunér Fleming, a Climate and Energy Manager for the Confederation of Swedish Enterprise.

"Individual entrepreneurs are the foundation for welfare"

Photo: Maja Suslin / SCANPIX

EU Our interview series with Swedish MEPs covers Alf Svensson, former leader of the Christian Democrats of Sweden. Damaging taxes, red tape, and the order of termination rules are his highest priorities for helping businesses.

Misleading statistics

Commentary The Swedish national statistical agency, Statistics Sweden (SCB), recently published data showing that all Swedes have seen their economic situation improve over the last 16 years. Despite this steady improvement in living standards, the SCB concludes that the share of Swedes having ‘low economic standards’ has grown. Their definition in the analysis, though, is misleading at best. Using the same definition for living in lower economic standards would find that no North Koreans are ‘poor’ while 15 percent of all Swedes are.

Tax Review is Welcome!

Commentary The Confederation of Swedish Enterprise is positive to tightening controls on companies that transfer profits abroad. But any legislation should preserve a good investment climate. Access to venture capital and the costs of capital determine whether any new investment is made at all, comments Krister Andersson Tax Division Manager at the Confederation of Swedish Enterprise.

Order of termination rules hurt women

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LAS The 2008 financial crisis impacted many companies negatively, especially in the manufacturing sector, forcing many employees into redundancy. But the order of termination rules in the Swedish Employment Act had a greater negative affect on women’s employment compared to men in these redundancies.

Private companies create jobs in health care

Employment growth Total employment in private care providers in Sweden has nearly doubled since 2000. And, privately employed care workers continue to grow in number, despite the general decrease in employment for health care, schools, and child and elderly care. These are findings culled from Statistics Sweden information by the Association of Private Care Providers.

Maria Sunér Fleming: Micro-management is the wrong way to go

Environment Swedish Society for Business and Politics (SNP) held a seminar in Brussels on the EU Commission’s legislative proposal for energy efficiency in Europe. Maria Sunér Fleming, Climate and Energy Manager for the Confederation of Swedish Enterprise, agreed that greater energy efficiency is needed, "but I put greater faith in creating positive, flexible incentives for improving energy efficiency rather than implementing political micro-management that includes setting limits to how much energy is used."

Temporary employment an important springboard

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Labour market A common misunderstanding in Sweden is that more temporary jobs detract from the number of permanent jobs. A new report confirms this is not so.

Photo: Nicklas Mattsson

The 1970s is not back to the future

Commentary I get a strong whiff of 1970s nostalgia when reading and observing the presentation of shadow budgets by the Swedish opposition parties. The public and business sectors are to collaborate together; nationalized risk capital funds are to manage business development; and the world’s highest marginal taxes are to be raised even more.