Sweden moves to limit profits from education, healthcare sectors
The makeup of the new Swedish government has been officially announced to the country’s Parliament by prime minister elect Stefan Löfven, who has spent the past few weeks putting together a coalition following the recent general election.
From a fund industry perspective, the two key roles at the Ministry of Finance have been filled by Magdalena Andersson, who becomes the new minister for Finance, and Per Bolund, who takes on the role of minister for Financial Markets and Consumers, as well as being deputy minister for Finance.
Andersson is a colleague of Löfven in the Swedish Social Democratic Party, while Bolund is from the key coalition partner the Green Party. Both have previously been spokespeople on finance for their respective parties.
Löfven has also outlined his government’s objectives for the coming Parliamentary period. A key objective will be to focus on unemployment. However, the new government is also concerned about a persistent deficit.
“Priorities will be required,” Löfven said.
Infrastructure investments and encouraging more building of residential real estate will be other key targets of policymaking.
Investors in Sweden’s healthcare system are likely to face questions about sustainability of profits, as the government is set to limit profits generated by, for example, deliberate understaffing policies by healthcare providers, as well as introducing related legislation that will limit services provider ability to set prices.
Similarly, the government is committed to limiting profits made by investors in the education sector, according to the policy outlined by Löfven.
However, the country’s fund industry could get a boost from commitments to reduce tax differentials on income from pensions versus income from work. Löfven also promised that the cross-party talks regarding ongoing pension reform would continue.