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Social Democrats pledge cut price unemployment insurance

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09:44 CEST+02:00
The opposition Social Democrats have pledged that they will halve the cost of unemployment insurance (a-kassa) if they win the next election.

The party's economic spokesperson Thomas Östros has said that the party plans to introduce a tax rebate which will reimburse 50 percent of the cost of unemployment insurance; Östros laid out the new policy in an opinion piece published in today's Dagens Nyheter.

For an average full-time restaurant employee this would mean a saving of around 1,000 kronor ($170) per year.

Almost 500,000 people have opted to leave the unemployment insurance system since January 1st 2007 as a result of the increased charges introduced by the Alliance government. The Social Democrats hope that the new model will encourage those people to return to the system.

According to the proposal the tax rebate will be included within the earned income allowance.

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