Sunday, September 23, 2007

Sweden's Non-Socialist Alliance launches new budget

The Swedish non-socialist alliance has just celebrated one year in power and presented a new budget that focused on more jobs, lower taxes to wage earners in the service sector and breaking down outsider barriers. At least 1000 Swedish crowns more in the wallet of low wage earners was promised by Prime Minister Fredrik Reinfeldt and Finance Minister Anders Borg at the formal opening of the Swedish parliament Tuesday, Sept. 18th. This was Reinfeldt's second government address re-echoing the Alliance platform that sent them to power last election.

Aside from job creation and the tearing down of outsider-insider barrier, the Reinfeldt government had earlier stated its policy on environment as it decided to join the anti-global warming bandwagon, which among other things, will raise the taxes on petrol and diesel. More importantly, the Alliance intends to take seriously the welfare state's important pillars of security and prosperity. The Socialists have stated the same concerns on many occasions during their long tenure of power. Reinfeldt, however will not allow such monopoly of claim over Sweden's security and prosperity issues.

At the same time that the Alliance government begun a strenuous effort to strengthen the welfare system, it has also sought to rectify the loopholes in the over-exploited welfare system by introducing several measures. For example, reduction of over-dependence in the social insurance system through shortening of sick leave benefits; reduction in unemployment benefits by cutting down on allowable days and payments. Finance Minister Borg had explained that, through these measures and by introducing new work incentives, unemployed people will find it more attractive to work.

The Alliance government has benefited from a strong Swedish economy when it took over power, as public tax revenues soared to new heights. Despite all the efforts to deliver electoral promises, Reinfeldt suffers from low opinion ratings. Swedish media has accused him of sounding more like a Social Democrat. However, it appears that the strategy of the new moderates is to find the right middle road in order to broaden its electoral base and attract supporters from the socialist bloc.It may not be that easy in comparison to other European countries such as Britain's leftist Labour Party or France' rightist new government under Sarkozy. Swedish politics is under the dominant shadow of several Social Democratic leaders and Reinfeldt's Alliance team will have to work harder to claim credit for improving further the Swedish welfare state system.

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