Sweden to unveil new stimulus package

The Swedish government is discussing a package of measures to cushion the economy from the blow of the global financial crisis, a government source said on Thursday.

“We are looking at what we can do,” the source said.

“They (stimulus measures) are clearly something that is being discussed,” he added, declining to be any more specific.

Public service television broadcaster SVT reported, without disclosing its sources, that the government planned to unveil an economic stimulus package, including measures to support the country’s struggling carmakers, next week.

Measures being prepared by the centre-right coalition government totalled 15 billion kronor ($1.82 billion), SVT reported on its Web site.

The package would include assistance to the auto industry, but the government still ruled out buying all or parts of US-owned carmakers Volvo and Saab, SVT reported.

Struggling auto makers Ford, which owns Volvo, and General Motors, owner of Saab, are looking to sell the units. Both parents have held talks with the Swedish state.

The stimulus package being readied by the government also included measures to support the broader economy, such as tax cuts and infrastructure spending, SVT said.

Sweden’s economy fell into recession in the third quarter as the global financial crisis took hold, data showed last Friday.