Tax cuts for the wealthiest, healthcare investment cuts, anger Swedish opposition

Sweden’s ruling coalition has unveiled a draft healthcare budget for 2025 - it got a cold reception from the opposition and health workers' unions. They say it’s a new blow to the hard-pressed Swedish health system.

Halfway through the government's four-year term, the finance minister Elisabeth Svantesson (Conservatives) announced last Thursday the government's budget proposal for 2025, saying the fight against high inflation was won and presented a reform package of SEK 60 billion (€ 5,3 billion).

However, the announcement sparked an intense political backlash from the opposition, as 40 per cent of the package would be directed to lower taxes, with high-income earners benefiting the most.

"A mockery of ordinary Swedes," Mikael Damberg, former finance minister and economics spokesperson for the Social Democrats, told journalists after the presentation.

Regions in deficit

The ruling minority centre-right government in Sweden is composed of the Moderates (conservatives), the Christian Democrats and the Liberals, which are supported by the Sweden Democrats (far-right) in the parliament.

Damberg is now very critical of the government's bid to "only" invest an extra SEK 3 billion (€ 260 million) to boost the healthcare sector next year. The bid includes SEK 2 billion (€ 175 million) in new sector contributions and SEK 1 billion (€ 88 million) in proposed performance-based contributions.

The government's move comes as Sweden's regions, which run most of the health care services, including specialist and primary care, face a total deficit of SEK 20 billion (€ 175 billion) in 2024.

"In total, there will actually be a decrease in state allocations to the sector next year because the government will give less money in one-year sectoral grants than this year, and there will be no general grants to the regions," Mikael Damberg told Euractiv.

A healthcare crisis

The Centre Party's economics spokesperson, Martin Ådahl, was also unhappy with the draft budget.

"This is a budget that turns a blind eye to Sweden's most serious problems," he told journalists, criticising cuts in the welfare sector.

Annette Wallenskog, the chief economist of the Swedish Association of Local Authorities and Regions, also stated that if the draft budget passes the Swedish parliament, state allocations will be reduced next year.

"This might not affect all regions, but several will be affected, and their situation will get worse," she told Euractiv.

More than 4,500 healthcare workers in Sweden have been made redundant or given notice this year. Sahlgrenska University Hospital in Gothenburg, for example, has to make record cuts of SEK 1,7 billion (€1.5 million) this year, corresponding to 2,000 employees.

Mikael Damberg talked about "an autumn of cuts" and blamed the ruling coalition for having created a healthcare crisis.

"When the cost-of-living crisis hit Sweden with high inflation, increasing costs for Swedish health care, not least pension funds, the government chose to underfund healthcare, which led to many notices of dismissal," he told Euractiv.

Defending tax cuts

While admitting that health care is under pressure in parts of the country, Elisabeth Svantesson said the move to lower income taxes would boost Sweden's economic growth and productivity and "spin the wheels".

At the press conference, she underlined that healthcare funding is mainly the task of the regions, the economies of which will be in balance next year, according to the minister.

However, speaking to Euractiv, Mikael Damberg said the draft budget would further undermine the financing of Swedish healthcare.

"There is something disturbing in Swedish politics when we can't provide more long-term contributions to the health system. One of the most disturbing things is the 'jerkiness' of the state when allocating extra money on a one-year," Damberg commented, referring to the inconsistent allocation of funds by the Swedish state, for example, to reduce waiting times but then phasing the extra funds out or retracting them.

As he explains, this makes the regions hesitate to employ staff. "This is something we would like to change," he added.

The Social Democrats will be presenting a shadow budget.

Nurses not impressed

Sineva Ribeiro, the president of the Swedish Association of Health Professionals (the nurses' and midwives' union), is not impressed either.

"This is another budget that does not sufficiently favour healthcare and our professionals. It could be a serious blow. Every day, we receive alarming reports of cuts and deterioration in the working environment, working hours and schedules due to the economy," she said, according to a press release.

The Swedish Medical Association would also like to see better long-term funding. According to its president, Sofia Rydgren Stale, the current system does "not provide safe and equal care for all".

"It is not logical for access to healthcare to vary according to the economic cycle and where you live in the country. Healthcare needs more stable and long-term conditions than it has today," she said in a press statement.

According to a recent Dagens Nyheter/Ipsos poll, healthcare is the Swedes' primary priority. It is the area where Swedes would most likely see state investments.

[Edited by Vasiliki Angouridi, Brian Maguire | Euractiv's Advocacy Lab]