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PM: mandatory jobs insurance unlikely

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PM: mandatory jobs insurance unlikely
16:05 CEST+02:00
Sweden's prime minister Fredrik Reinfeldt has said that the election 2006 promise to make unemployment insurance (arbetslöshetsförsäking - A-kassa) obligatory is unlikely to be realized during the next mandate period.

Reinfeldt said in an interview with Sveriges Radio's Ekot news programme that even if the centre-right Alliance coalition would hold on to power after the September 19th election it was unlikely that the system would be introduced.

"We have no reason to move forward with a compulsory insurance scheme which forces high fees on those who have no wish for it," he said.

Reinfeldt also pointed out that the Moderate Party is less forthright in pushing the idea than its coalition partners and mirrored comments by finance minister Anders Borg when the results of an inquiry were presented a couple of years ago.

Borg has previously described the idea as a penalty tax on labour.

Reinfeldt meanwhile uttered a straight no when asked if he wants to remove the so-called temporary austerity tax (värnskatt) - an additional 5 percent levy on earned incomes above 532,700 kronor ($72,600).

He also ruled out an expansion of the childcare allowance which affords stay-at-home parents a payout of up to 3,000 kronor per month.

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