Nuder: no big tax cuts

Sweden's finance minister Pär Nuder has said there will be no big tax cuts if the Social Democrats win the next election.

Nuder was speaking as he emerged from a meeting of ministers at the prime ministerial retreat at Harpsund on Wednesday. He gave an optimistic view of the prospects for the Swedish economy, a month before the general election.

“We expect significant increases in the number of new jobs in the coming years, with about 120,000 to 150,000 new jobs this year and next. This spring he had predicted just 80,000 new jobs this year and 40,000 next year.

The government also now believes that there will be a surplus in the public finances of 2 percent of GDP. This spring the government said it now expects the surplus to be 2.0 percent.

He said that there was little room for reform of the economy.

“We have to learn to read the economy in another dimension,” he said.

“We have to learn what the economy can take in terms of reform.”

He warned that a continuation of the currently positive economic situation could not be relied upon.

“We can’t afford big tax increases during the next parliament. Don’t expect promises in the hundreds-of-billion category on Friday.”

He said he has the same view on open unemployment today as he had this spring, namely that it will fall to around 4.5 percent by the end of the year. That corresponds to around 4 percent according to SCB’s former way of calculating the figure.