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9/20/12

Sweden budget bill sparks heated debate - corporate tax rate cut from 26.3 to 22 percent

Swedish Finance Minister Anders Borg defended the government's 2013 budget proposition on Thursday, in the face of tough criticism from unions and opposition politicians.

"We're presenting this year's budget proposal in very uncertain times. But with this budget, Sweden will have perhaps the strongest finances in Europe," Borg told reporters during a morning press conference.

"The budget includes long-term, necessary investments. But the starting point is that we're in a tough situation. We have countries like Greece, Spain, and Italy that give reasons for great concern."

The government announced reforms totalling 22.7 billion kronor ($3.47 billion) aimed at stimulating growth and employment next year, including investments in infrastructure, research and development, and programmes to improve job opportunities for young people.

It also plans to cut the corporate tax rate from 26.3 to 22 percent to improve prospects for new jobs and investment. 

Meanwhile Robert Berqvist, chief economist with the SEB bank, said the government's growth forecasts where "at the high end of the scale". "His forecast is 2.7 percent and we're at about 1.5 percent. That's a big difference," Berqvist told the TT news agency. 

Read more: Sweden budget bill sparks heated debate - The Local

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