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Centre-right edges ahead in Swedish race
The Financial Times ^ | 8/14/2010 | Andrew Ward in Stockholm

Posted on 08/15/2010 11:30:06 PM PDT by bruinbirdman

Sweden’s general election campaign officially began at the weekend as Fredrik Reinfeldt, prime minister, duelled with his main opponent over jobs and taxes, a month before his centre-right government hopes to win a historic second term.

Mr Reinfeldt pledged another round of tax cuts and promised to promote work over welfare as the four-party Alliance attempts to redraw the political landscape of a country traditionally dominated by the centre-left Social Democrats.

Opinion polls have shown the government edging in front of the opposition Red-Green alliance ahead of the September 19 vote, helped by Sweden’s emergence as one of the best-performing economies in Europe this year.

Mona Sahlin, Social Democratic leader, hit back on Sunday with a speech burnishing her commitment to Sweden’s cradle-to-grave welfare system and assailing the government’s record on job creation.

The sparring came as the leaders held rival rallies in Stockholm to launch their campaigns in an election that analysts say is too close to call.

Mr Reinfeldt was elected in 2006 on a platform of lowering Sweden’s taxes, which have for decades been among the highest in the world, and privatising a range of state-owned companies. Victory next month would give him an opportunity to entrench pro-market reforms in a country ruled by the Social Democrats for 65 of the past 78 years.

In his speech on Saturday, Mr Reinfeldt set out plans for SKr20bn ($2.7bn, €2bn, £1.7bn) of fresh tax cuts over the next four years, benefiting 6.1m retired people and low- and middle-income workers, in contrast to opposition plans for higher taxes.

“Our proposals will create jobs and increase the incentive to work,” he said.

The planned cuts would kick in only after public finances return to surplus, probably in 2012, according to current projections.

“It’s our ambition to carry out these initiatives during the next term, but we will never sacrifice the strength of public finances,” said Mr Reinfeldt.

The government’s ability to float possible tax cuts while also promising to maintain a strong welfare system highlights the relative strength of Sweden’s economy compared with much of Europe – a fact that will be at the heart of the Alliance campaign.

Sweden is forecast to have the smallest budget deficit in the European Union this year at 2.1 per cent of gross domestic product. Its economy is recovering quickly from last year’s recession, the deepest since the second world war.

Unemployment is also falling but remains high at a seasonally adjusted 8.1 per cent, and the opposition has seized on soaring youth joblessness as one of its main lines of attack.

“[The government] sees nothing more important than lower taxes,” said Ms Sahlin. “Not youth unemployment, not healthcare or education, not rising income inequality.”

A poll on Sunday showed the government narrowly ahead with 48.6 per cent support, compared with 45 per cent for the opposition, broadly in line with other recent surveys.


TOPICS: Culture/Society; Government; News/Current Events; Politics/Elections
KEYWORDS: sweden

1 posted on 08/15/2010 11:30:09 PM PDT by bruinbirdman
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To: bruinbirdman
rules...


2 posted on 08/15/2010 11:48:42 PM PDT by Berlin_Freeper (Chump Obama promised "Change" and we got chump change.)
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To: bruinbirdman
more rules...


3 posted on 08/15/2010 11:49:26 PM PDT by Berlin_Freeper (Chump Obama promised "Change" and we got chump change.)
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To: Berlin_Freeper

One of these doesn’t look like the others, one of these just doesn’t belong...

(Well she is hot, just felt that would make a good comment :)


4 posted on 08/15/2010 11:56:25 PM PDT by aft_lizard (Barack Obama is Hugo Chavez's poodle.)
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To: Berlin_Freeper

5 posted on 08/15/2010 11:59:50 PM PDT by Pylon (Tagline: (optional, printed after your name on post):)
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To: bruinbirdman

In Sweden it’s the fascists leading the socialists. Freedom isn’t on the agenda at all.


6 posted on 08/16/2010 12:35:00 AM PDT by devere
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To: bruinbirdman

What they need to do is to remove bunches of muzzies.


7 posted on 08/16/2010 12:44:12 AM PDT by neutrino (Globalization is the economic treason that dare not speak its name.(173))
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