New centre-right Swedish PM takes office

Reuters ^ | Oct 5, 2006 | Reuters

[RogerFGay]

STOCKHOLM (Reuters) - Centre-right opposition leader Fredrik Reinfeldt, who has pledged to cut taxes and trim the welfare state, formally became Sweden's new prime minister on Thursday after winning a vote in parliament.

Reinfeldt got 175 votes in his favor and 169 against in the 349-seat parliament, had been expected after he led a four-party alliance to victory in a September 17 election.

Reinfeldt, who leads the Moderate Party, will on Friday formally lay out his government's plans for the next four years and present his cabinet. He will launch a budget on October 16. The coalition includes the Folk Liberal Party, the Center Party and the Christian Democrats.

[RogerFGay]

ping

[litehaus]

"who has pledged to cut taxes and trim the welfare state"

---

WOW! Wada an idea!

[AIM-54]

It will be interesting to see what comes of this. It was a coalition of four parties that ousted the Social Democrats. Now that they have achieved their objective, it will be interesting to see if they can stay unified. With the common 'enemy' defeated for the time being, it may prove to be a challenge.

Personally, I expect to see very little come of this. Let's see what the institutional and public reactions are when someone actually tries to constrain or rollback social welfare. Expect a lot of resistance to any substantial change.

[johnthebaptistmoore]

Much of the rest of the world is turning right politically while the U.S. is at risk at turning left politically. It's a strange world.

[RogerFGay]

The past has seen the Social Democrats ousted a few times; mostly because people get sick of them or have some reason to punish them. The right moves in for a term; then people ask -- so what did that accomplish? -- and put the Social Democrats back in power.

There are some who say that's not a fair test. It can take time to make changes in things that have been built over decades and to see the effects of those changes.

The left has promised to fight proposed changes as hard as they can, and has exaggerated the changes; describing them as something like a complete dismantling of socialism in Sweden.

I don't know myself how things are going to go. One thing they have to their advantage is that we seem to have pulled out of the world-wide recession. Companies are hiring again, etc. There should be a drop in unemployment and welfare dependence even without policy change.

I'd like to see a lot of positive change related to start up and operation of small businesses; more toward the U.S. model where it's not so hard -- not too heavy on bureacratic overhead and paperwork. I'd also like to see the markets opened up enough to have a positive effect on consumers. One might think of lowering or dropping taxes on essentials like food and rent, etc.

[RogerFGay]

Much of the rest of the world is turning right politically while the U.S. is at risk at turning left politically. It's a strange world.

You've noticed that too? I would have thought after defeating naziism and communism, the U.S. wouldn't have the will to become more like them.

[The Great RJ]

Cutting taxes and trimming the welfare state is a good start, but what Sweden and the other socialist states of Europe need is someone like Margaret Thatcher who will get rid of government owned and run industries ....freeing the so-called commanding heights of the economy.

[RogerFGay]

Some of Sweden's government owned business have been sold off, completely or in part. Sweden has been a member of the EU for years now, and also allows competition against it's old monopolies. (Although I've mentioned elsewhere that there are still problems with the transition -- too little competition in supply chains.)

The center-right coalition has promised more sell-offs, and I believe they will do it faster than the Social Democrats would have.

[johnthebaptistmoore]

You can thank political correctness, the mainstream media, and all of the political left's other allies for the U.S. possible shift to the left. I would prefer to see all of them squirm and have all kinds of hissy fits if the Republicans succeed in maintaining their political majorities after this November elections.

[RogerFGay]

You can thank political correctness, the ...

And plain old-fashioned corruption. More government power and less constitutional framework and tools to contain it provides the groundwork for ... what we could call Freedom of Government Corruption. Follow the money ... billions and billions seeping out all over the place in programs that would have been unconstitutional two decades ago.

Somebody recently mentioned that you could see what unrestricted government power did in the Soviet Union. Once the walls came tumbling down, everybody got a good look at the real infrastructure ... a bunch of organized crime syndicates running everything in the country.

[Mentat]

What is really funny is that the former Prime Minister Göran Persson praised Margarat Thatcher recently. He didn't know it himself at the time of course, or he would never have said it - Mrs Thatcher is like "public enemy no 1" in the socialists eyes.

Anyway, it was at a EU leader's summit meeting where they were discussing the rebate that the UK has in financing the EU. Mr Persson claimed that it was no longer needed as "the UK has developed into a vital, dynamic economy over the past decades".

Ah yes, how true. Let's see now: Whos policy made this possible...? :-)

[ScaniaBoy]

We had to get rid of the socialists and the former communists and the greens. It was a must. But I am very sceptical about the new government. Mr Reinfeldt has made a Cameron and ditched all principles and policies of his predecessors - and of his core voters.

Income tax reductions are not on the table, according to what he said during the election campaign.

Even worse, according to Jyllands Posten (the "Muhammed cartoons" newspaper) Carl Bildt, the former Conservative PM, will become new minster of foreign affairs.

Mr Bildt has changed from a cold warrior to become a EU-federalist, super globalist, and appeaser. He is sitting on a number of committees sponsored by George Soros.

This does not bode well.........

(But re Bildt it is still only a rumor. There are many a good reason why Reinfeldt should not chose him, not least the fact that at a couple of years ago they were deadly enemies and I haven't heard that they've made up.)

[ScaniaBoy]

I should add though, that whereas Cameron is ditching his principles in what is essentially a two-horse race, Reinfeldt was partly forced to do this to be able to form a firm coalition with the (even) more leftist Liberal Party, the Center Party and the Christian Democrats.

[RogerFGay]

Carl Bildt is Foreign Minister. It's official now.

Also announced:

Lars Leijonberg; Minister of Education
Anders Borg; Minister of Finance
Cecillia Stegö Chilo: Minister of Culture
Maria Borelius; Minister of Trade
Maud Olafsson; Minister of Commerce
Göran Hägglund; Minister of Social Services

Prime Minister Reinfeldt said most important are jobs and making is simpler for business. He also expects a new family politics.

[Eurotwit]

Not a bad government, considering what came before it.

I am particularly impressed by the choice of integration minister, Nyamko Sabuni.

She seems to me to have a common sense approach to immigration and integration issues and is not beholden to the PC monster.

Off course, the moonbats are already shrieking and calling her appointment a scandal, and calling her an islamophobe.

[RogerFGay]

ditching his principles ..., Reinfeldt was partly forced to do this to be able to form a firm coalition with ...

As you watch what happens, don't underestimate the current power of the EU, even in the absense of a "constitution" and without the pressure of common currency and fiscal policy. I have been concerned about the right's stand on the EU constitution ... not for centralized power so they don't care what the constitution looks like ... but they do want it for the sake of getting on with free trade, etc.

I was pleased when some on the right expressed support for my suggestions on an EU constitution. I hope they follow up by supporting development of a good European coalition for the right kind of constitution.

Suggestions for the EU Constitution

[Eurotwit]

At least Mr. Bildt will probably not have time to update is blog anymore ;-)

BTW: It looks like a Hoyre/Frp government might be possible in Norway after the next elections. Several polls over the last month is showing that they are closing in on 50 percent of the vote. Off course with Frp as the senior party polling in at 31-33 percent.

Cheers.

[RogerFGay]

I read a little here and there about the integration minister and some of the thoughts on integration policy. As an imigrant myself, it's always a riot to see how policy is going to help me fit in. I was a bit dissolusioned that separating SFI students by background didn't work well. I thought it would. It should be interesting to see their thoughts on new jobs related policy -- something better than blaming the unemployed, I hope. I certainly believe that a better environment for business will help a lot -- but that will take some time to translate into jobs -- except -- I've been pushing the idea of more "starta eget" type arrangements for the unemployed. "Jag har en plan!"

I got my minister appointments list from SVT Text. If you have more names, please post them. I'll try to assemble a complete list.

[Eurotwit]

The full list of ministers is as follows:

Foreign Affairs: Carl Bildt (Moderate)
Finance: Anders Borg (Moderate)
Industry: Maud Olofsson (Centre Party leader)
Social Affairs: Göran Hägglund (Christian Democrat leader)
Education: Lars Leijonborg (Liberal Party leader)
Schools: Jan Björklund (Liberal)
Agriculture: Eskil Erlandsson (Centre)
Culture: Cecilia Stegö Chilò
Local Government and Financial Markets: Mats Odell (Christian Democrat)
EU: Cecilia Malmström (Liberal)
Trade: Maria Borelius (Moderate)
International Development Cooperation: Gunilla Carlssson (Moderate)
Public Health: Maria Larsson (Christian Democrat)
Social Insurance: Cristina Husmark Pehrsson (Moderate)
Environment: Andreas Carlgren (Centre)
Defence: Mikael Odenberg (Moderate)
Justice: Beatrice Ask (Moderate)
Migration: Tobias Billström (Moderate)
Integration and Equality: Nyamko Sabuni (Liberal)
Employment: Sven Otto Littorin (Moderate)
Infrastructure: Åsa Torstensson (Centre)

http://www.thelocal.se/article.php?ID=5130&date=20061006&PHPSESSID=4476718dd3ba3284cf9baea73f77dcf3

[Eurotwit]

BTW: Bildt has just held a press conference where he emphasized that Sweden and Europe must cooperate with the United States.

Whatever, one might think of Mr. Bildt he surely is an improvement over the social democratic ilk.

Personally, I am quite happy with his appointment, but I have to admit that my bar is not set very high.

Cheers.

[RogerFGay]

Thanks Eurotwit;

Full list of Swedish minister appointments in post #20.

[ScaniaBoy]

Good to hear about Norway and Frp.

My predictions for Sweden are pretty gloomy. From what has already happened, and from my knowledge of the (in)competence of some of the newly appointed ministers I would say that the outcome of the next election depends on the policies of the Social Democrats.

If they chose a reasonable party leader - possibly from the local council sphere rather than from the party hierarchy - and makes a policy shift towards more euroscepticism and start to advocate a more restrictive immigration policy they may possibly break the 50% mark.

If they do not neither the Alliance nor the left (Social Democrats, Left party and the Greens) will win majority in the next election, because both the Social Democrats and the Conservatives (Moderates) will lose lots of votes to the anti-immigration party the Swedish Democrats (Sd).

Assuming a down-turn in the economy and the problems in Malmö and other immigrant rich towns continuing roughly at the same level as at present I do not think it is unlikely that the Sd could gain between 10 - 15% of the vote.

OK, now I have stuck my neck out - much can happen in 4 years, and the Alliance can surprise me with a good and efficient government, but so far - even before they have started governing - they've alread commited a number of grave strategical mistakes that they will have to live with for the rest of the election cycle.

Sad.....

[RogerFGay]

I mentioned this earlier, but I'll do it again specifically in relation to immigration policy. The EU is going to have a lot to do with defining immigration policy -- at least so far as EU member states are concerned -- and may have a big impact on other aspects of immigration policy.

Some of the problems of the former communist nations -- including poverty and organized crime -- are going to be EU problems now -- something for everybody.

I agree that we should be concerned. There are some pretty serious problems cooking. But they aren't just local problems, and they will be effected by EU decisions.

[RogerFGay]

Official policy -- income tax is supposed to go down next year. He said so before the parliament in his "declaration of government" (is that what it's called?)

[ScaniaBoy]

Official policy -- income tax is supposed to go down next year. He said so before the parliament in his "declaration of government" (is that what it's called?)

Yes, "regeringsförklaring" = "declaration of government"

And, yes, surprisingly he says that the government will carry out a major income tax reform. This was sparingly discussed during the election campaign, but it was mentioned. The reform will mainly affect the low and middle income earners.

However, that is not bad at all (although a tax reduction for those with higher earning would not have come amiss either) since in comparison with other European countries it is actually our low and middle income earners who have had to pay relatively speaking the highest taxes. Our top rate is not that different from say France or Germany (this is discounting indirect taxes), whereas the rates for low income earners are definitely one of the highest in Europe - and that means highest in the world.

From a long term perspective this is a good thing. Due to the high tax rates even middle income earners have been dependent on state subsidies, which is one of the (main) reasons why it has been so hard to dislodge the Social Democrats. Of course if and when people find out that they can manage on their own salaries it may become much more difficult to turn back to a high tax regime.

So, let's be clear about this, I am not saying that everything they're doing is bad - I did vote for the Alliance after all.

Again when it comes to immigration issues you are correct, but only partly so. It will become / is a EU competence area, and much of the legislation will come from the EU. However, given the eu-federast (sic!) inkling of the leading politicians within the Alliance we can be certain that they will not fight against any softening of EU immigration laws.

As I stated above, this will give the Social Democrats an excellent opportunity to play an EU-sceptical/anti-immigration card that will guarantee them a return to power next election. If they are clever enough to see this is, however, very doubtful.

[RogerFGay]

I'm not missing your point. Economy is improving, but there will be immigration problems. I got the impression from talking to people that immigration was a very big issue this time around. SvD got a strong foothold in local politics, especially in the south, as you well know. I know of some votes that were lost from the left bloc as a backlash against immigration. I suppose if the problems are bad enough, the left could just keep quite about it and take advantage of "through the bums out" sentiment next time. People often do after all, vote based on how things look and feel at the time -- good they stay, bad they're out.

As for the sparing of discussion on major income tax reform during the election campaign; remember how it was 4 years ago? Lower taxes, lower taxes, lower taxes ... vård och omsorg, vård och omsorg, lower taxes, lower taxes ....

It seemed too simplified ideologically ... like naive ... and just plain boring. It left questions about what else was going to happen .... without having any money to run the government (what, no taxes?) Anyay, I think the Alliance did well with a unified platform and diversified issue campaign this time.

[ScaniaBoy]

Anyway, I think the Alliance did well with a unified platform and diversified issue campaign this time.

I think we are in agreement on the immigration question - it was big this time, especially in Scania (Skåne) and Blekinge - it will be huge next time around.

As for the campaign - and here I hold everyone equally guilty, the (former) government, the Alliance and the media, and even to some extent the voters, but a campaign where these issues are not discussed is hardly a true election campaign:

Foreign policy
EU policy
Defence
Immigration

Hardly any small unimportant questions. But as you mentioned, it was just as bad, or maybe even worse, last time around.

The one difference was that the Alliance showed a unified front, and that won them the election!

[RogerFGay]

I've been complaining about the lack of substantive discussion and debate on EU for quite some time. I've even written a few articles on EU; noting I think the strange positioning of both sides; and I was sorry to see so little of Junilistan. I think one seat in parliament would have made a huge difference in the future of the debate. From my perspective: Yes to Europe ... but for cryin' out loud ... not just any Europe ... not a Europe with a Soviet style constitution!

Defense, and even foreign policy might have been a difficult issue this time around, what with the Iraq War, etc. At least off the campaign trail, differences have been reasonably clear. Might even be a chance for NATO? The right is obviously openly pro-west and pro-American. (I didn't actually see Göran Persson as anti-American, but of course some of the coalition partners were looney.)

[RogerFGay]

Good coverage on SVT 2. Carl Bildt explained there's lots of cooperative policy making to be done. Many pan-European and global challenges to face.

I'll be watching 4 at 10.

[RogerFGay]

Good briefing on SVT Text today.

[RogerFGay]

The new prime minister presented the "declaration of government" yesterday (as evidenced by a complete list of ministerial appointments). In his presentation, he outlined the priorities of the new government. First, comes the economy, especially jobs. The approach includes lowering the costs associated with starting and running businesses, tax reduction for employing long-term unemployed and young adults, and income tax reduction for people with jobs. Some of the work of the national employment system will shift to private services. The work of the national unemployment system will refocus on matching job seekers with employers and away from promoting special government make-shift jobs. They are also expecting to reduce employment taxes for household workers, an idea that they've been pushing for many years.

In the area of worker protection: Everyone will be required to participate in the unemployment insurance system, insurance rates will increase, and benefits will change somewhat. In health, dental coverage will begin to look more like other health coverage with maximum annual cost. The shift in national benefits includes higher co-payments for some things.

Re: Foreign policy -- Emphasize international cooperation, particularly with EU and US.