STOCKHOLM--Sweden's new finance minister on Thursday presented a
proposed budget with a clear leaning to the left, signaling an
intention to increase some taxes and raise spending on job creation
programs, welfare and schools.
Social Democrat Magdalena Andersson, whose center-left party won
power after elections last month, said her government wanted Sweden
to have the lowest unemployment rate in the European Union by 2020
and limit the time young people would spend unemployed to 90
days.
To meet those goals the government will fund trainee jobs and
education programs, the finance minister said. The initiatives will
be funded in part by raising taxes on higher earners.
"This is a budget where we propose important reforms to bring
down unemployment, break the [negative] developments at schools and
invest more in the environment," Ms. Andersson said.
The tone of her message was in sharp contrast to that of her
predecessor, the center right Anders Borg.
Mr. Borg's emphasis during his eight years as finance minister
was on tax cuts on individual and company earnings with the aim of
incentivizing work for the good of the overall economy.
While such moves were largely popular among voters, his
perceived lack of focus on investing in Sweden's cherished welfare
state ultimately cost him support at the ballot box in
September.
Ms. Andersson chose to place more emphasis on the idea of
solidarity saying her budget was about "holding Sweden
together."
The budget also reflected the fact that the Social Democrats
fell well short of an absolute majority at last month's elections
and now govern in a minority coalition with the Green Party.
One area where Green Party priorities were noticeable was a
proposal to spend public money on supporting efforts to better
insulate ageing tower blocks to reduce energy consumption.
To get the budget through parliament the government also
requires the backing of the Left Party, which was also reflected in
Thursday's proposals.
Left Party leader Jonas Sjostedt told Swedish public radio the
investment in increasing staffing levels at care homes for the
elderly was an example of his party's influence over the Sweden's
spending plan for 2015.
Write to Charles Duxbury at charles.duxbury@wsj.com
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