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POLITICS

Red-green coalition takes power in Gothenburg

The Social Democrats, Green Party and Left Party have managed to oust the right-wing Moderates from power in Gothenburg, despite failing to strike a coalition deal with the Centre Party.

Red-green coalition takes power in Gothenburg
The Green Party's Karin Plejel (MP), the Social Democrat's Jonas Attenius (S) and the Left Party's Daniel Bernmar. Photo: Adam Ihse/TT

The Social Democrats, Left Party and Green Party will now take over the municipality with Jonas Attenius, group leader for the Social Democrats in the city, becoming the new mayor.

“We three parties are ready to together take responsibility for leading Gothenburg,” Attenius wrote to TT. “I am looking forward immensely to leading Gothenburg in the coming years.” 

The three parties will lead a minority government, with 40 out of 81 mandates, meaning it will dependent on mandates from the Centre Party to pass proposals. 

The three parties had hoped to bring the Centre Party into the coalition, but talks fell apart on Monday,  October 24th. 

“We our going into opposition, but our goal is to be an independent, liberal force, which can negotiate both to the left and to the right,” the party’s group leader in Gothenburg, Emmyly Bönfors told the Göteborgs-Posten newspaper. 

The end of talks in Gothenburg leave the Social Democrats leading coalition governments in all three of Sweden’s major cities, with Karin Wanngård appointed Mayor of Stockholm on October 17th. 

The Social Democrats had unbroken control in Malmö since 1994, after they regained power from the Moderates, who controlled the city from 1991-1994, and also from 1985-1988. 

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POLITICS

Swedish government offers tax deferral to businesses

High energy prices and high inflation are hitting Sweden's businesses hard. With energy price subsidies for these consumers delayed, the government is now extending existing tax deferral schemes implemented during the pandemic to ease the pressure.

Swedish government offers tax deferral to businesses

Finance Minister Elisabeth Svantesson and Energy and Business Minister Ebba Busch announced the scheme at a press conference on Thursday.

“Many, many companies are now struggling with their liquidity,” Svantesson said.

The deferral scheme is similar to that proposed by the previous government in order to ease the effects of the Covid-19 pandemic on companies, which was due to run out in February. The government has now proposed extending this scheme, allowing companies to delay their tax payments.

“These proposals will make things easier for many businesses,” Svantesson said.

The tax deferral scheme is not, Busch explained, being introduced as a replacement for the energy price subsidy for businesses which was supposed to be paid out “before Christmas” and which has now been withdrawn temporarily while the government figures out how it can be introduced without breaking EU law.

“No, rather this is a measure we’ve been looking at for a while, which should be seen as a complement,” she said.

According to rough estimates, the government believes that around 12,000 companies will apply for tax deferral, which would mean around 16 billion kronor in tax payments being delayed until a later date.

Företagarna, Sweden’s largest organisation of business owners representing around 60,000 companies across different branches, has welcomed the move, despite also voicing criticism that it’s just pushing these problems further into the future.

“It’s a loan and all loans need to be paid back over time,” Företagarna’s CEO Günther Mårder said.

Företagarna did, however, agree that the scheme will be necessary for some businesses to survive.

“Most companies going under are doing so because of liquidity problems, and this new measure will strengthen liquidity in the short-term,” Mårder said, adding that the measure could “save businesses”.

However, with many businesses already owing back taxes delayed during the pandemic, Mårder believes this could just be adding to the mountain of debt already faced by some companies.

“It means it will be record-breakingly difficult to get over this hump,” he said. “What they’re doing now is pushing problems into the future, and of course, that’s also a solution.”

The Confederation of Swedish Enterprise is positive towards the government’s proposal, adding that the many Swedish companies are currently in a difficult situation.

“Since the repayment of bottleneck revenues [energy price subsidies] is delayed, it is good and fair that companies have the opportunity to extend their tax deferrals,” Jonas Frycklund, vice chief finance officer of the Confederation of Swedish Enterprise wrote in a statement.

“This will lower the risk of having to let employees go unnecessarily.”

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