EU's stimulant package hard to implement

A stimulant package of two thousand billion euro is recommended by the EU Commisssion to be able to get Europe out of the economic crisis. It includes among others the lowering of Vat for certain services and tax reduction for low-income earners.

"We find ourselves in an exceptional crisis period," says EU Commission Chairman Jose Manuel Barroso when he presented the economic package of 200 billion euro to help Europe out of the economic stagnation. But it is not the EU Commission sittting at the driver's seat responsible for the EU member state's economic recovery.

A large part of the package which consists of 1.5 percent of EU's BNP rests on the 27 EU member-countries. They are the ones, through different types of financial measures, that will inject the necessary adrenalin in the economy with 170 billion euro, while EU's common budget stands for 30 billion euro is earmarked for different loans, previously-assigned payment of fund and investments in common EU projects.

The EU Commission presented some kind of a la carte menu of suggestions that the member states can use to get their economies moving. They include both tax reduction and increased fees. Some countries could decrease tax for low-income earners, lower Vat to 15 percent ( in Sweden it is 25%) and added support for the production of environment-friendly cars as well as incentives to the construction and infrastructure sector.

The decisions of the EU-member countries will be taken up on Dec. 11-12 when they meet in Brussels. Several countries already set in motion several financial measures in their respective budgets as well as other urgent measures immediately after the crisis outbreak. Sweden says that it has done its own homework in the new budget. "It is in line with what we do and are prepared for more should the need arises," says Swedish Labour Minister Sven Otto Littorin.# (Translated and edited from DN, 27 Nov. 2008)

No to Jas Gripen, Yes to Nordic defense cooperation

Norway's response to the Swedish defense minister's debate article published in Dagens Nyheter Thursday, Nov. 20th where it was alluded that the former would buy SAAB's Jas Gripen came a day after. The Norwegian government prefers the American Joint Strike Fighter, a decision that instantly raised eyebrows among Swedish politicians and airplane experts.

The four Nordic countries that have agreed to strengthen border security cooperation have chosen separate ways when it came to fighting planes: Finland has the heavy US F-18; Sweden, its light Jas Gripen; Denmark the older version of US F-16 and now Norway will buy the new American Joint Strike Fighter.

What has caused the eyebrow raising among Swedish experts is the fact that the price Norway has to pay for the US fighter planes is not commercially reasonable, reports said. According to the Defense Security Cooperation Agency, DSCA in its September account, the 48 JSF planes would have cost around 58 billion Norwegian crowns and not NOK18 billion as now reported. It can only be deduced that the current state of US economy has plunged the price of its JSF.

Swedish experts say that the total cost for life maintenance of JSF planes, or what is referred to as life cycle cost, is three times the cost of Jas Gripen. Even Norwegian military experts in its cost analysis say that, " the cost picture for all identifiable cost elements is 20 to 30 billion higher for JSF (compared to Jas Gripen) over a 30-period life perspective"."

Sweden drops third in world gender equality rank

The World Economic Forum recently released its Gender Gap Index report where it shows that Sweden has dropped its predominant lead position to third place after Norway and Finland. The investigative reporting started in 2006 and Sweden had been at the top of then list as the most gender equal in the world until this year.

However, Sweden still rates high in several areas such as the number of women in the parliament, literacy and education. That it fell to third place has been attributed to the number of women ministers and the estimated income of women. "Equal wage for equal work" finds Sweden on the 35th rank, and especially the fact that there has never been any female head of government. Some 39 countries have or has women presidents/prime ministers and rank better than Sweden.

The following countries rank high in the Gender Gap Index: Iceland (4th); New Zealand (5th); Philippines(6th); Denmark (8th); Netherlands(12th); and Lithuania(13th).

Swedish gender Equality Minister Nyamko Sabuni-who refused to be interviewed by Dagens Nyheter, stated that " exactly as it was last year, the Nordic countries rank at the top with small variations, indicating that Sweden's gender equality work is stable. She alluded to gender quotas being used in companies in Norway.
" Here in Sweden, we have used another way through reforms in order to create better conditions for women instead of legislation." In the case of Finland, the improvement in its gender equalisation is credited to the positive development in education and health, and that it has a woman president, Tarja Halonen.# (Edited and translated from Dagens Nyheter.)

OECD sees economic recovery by 2010

The Western world's economy is heading for the worst recession since the oil crisis of 1970s, according to OECD's latest forecasts. The leading economies are definitely in a state of recession. The situation was already bad in summer with high raw material prices, a correction of the property market and financial turbulence. When the Lehman Brothers declared bankruptcy, the real financial crisis broke out. It is the reason behind the prevailing recession, said Jörgen Elmeskov who is responsible for the report " Economic Outlook" released Thursday.

According to "Economic Outlook" the growth forecast for next year remains down. In June, OECD predicted that USA's economy will grow by 1.1 percent in 2009, and the Euro area by 1.4 percent. The growth figures as they stand now are on minus with USA shrinking close to 1 percent and the Euro area by half percent.

Earlier in the week, OECD presented a summary of important recession indicators for the world's leading economies, which are all on a downturn direction. OECD economist Ronny Nilsson said: " Now the recession in certain countries is so weak that one must go back 30 years in time to find the same level. There is no upward turn in sight." Unemployment among OECD member- states is around 6.9 percent next year and 7.2 percent in 2010. The Euro area will be worst affected with 7.4 percent this year and 8.6 percent next year.

However prices will decline and inflation could be lower than feared. The OECD economists urged more measures needed to stabilise the financial markets, and that such measures should be done through international cooperation.# (Translated and edited from Dagens Nyheter, Nov. 14, 2008)

Sweden reinforces troops in Afghanistan

Sweden is sending an additional 100 soldiers to northern Afghanistan as well as increasing its development aid, the government decided Thursday. But the Swedish troop lacks heavy fighting vehicles.

At present there are 400 Swedish soldiers in the NATO-led Isaf forces. Together with Finland, they are respon- sible for the security of a large portion of northern Afghanistan. The number of Swedish soldiers will increase to 500 in 2009 and a transport plane will be moved from Dubai to Afghanistan. Swedish military advisers will be put at the disposal of the Afghan army. There will also be ambulance helicopters even if the delivery is delayed.

The Swedish International Development Authority (SIDA) has received a new mandate to implement a new aid strategy and the assistance to Afghanistan which stands at 365 million SEK in 2008 will be raised to 500 million SEK yearly.

Swedish Foreign Minister Carl Bildt described the international community's huge undertaking in the country in order to insure the democratic election, strengthen the police force and anti-corruption work as well as improve the regional dialogue with neighbouring countries such as Pakistan and Iran. There are critics in Sweden, who pointed out that the Americans have not done much to help the civilian population's development. "Afghanistan is one of the world's poorest countries and has gone through three decades of war. The seven-years of state-building is not enough," said Carl Bildt.# (Edited and translated from Dagens Nyheter, Nov. 14, 2008)

Sweden agrees to re-open talks with Russia

The European Union (EU) will resume negotiations for a partnership agreement with Russia and Sweden has agreed to the move. This is despite the fact that the latter has not fulfilled all the conditions in the peace agreement that came after the war in Georgia. EU believes it could achieve better influence, although Georgia is not happy with EU's decision. All the EU member-states except Lithuania said yes to the resumption of talks. Georgia says this is a mistake and that history will vindicate who is right and wrong.

Sweden and Great Britain, both of whom were earlier sceptical, agreed to open the doors to new talks, as long as it was made clear that relations with Russia is no longer as it was before. "Russia's disproportionate actions in summer against Georgia - a clear violation of international right - continues to cast a shadow over EU's relationship with Russia," writes Swedish and British foreign ministers Carl Bildt and David Milliband in a joint letter.

Both pointed out that Russian troops have not returned to the positions they had before the invasion and that there are still Russian soldiers in the strategic areas in Akhalgori and Kodoridal in Abchazien. Carl Bildt had been one of the strongest critic against Russia but he had gone along with the re-opening of talks. He defended his position by saying that the mandate for re-negotiation has become tougher. The initiators for the resumption of talks were the French EU presidency and the EU Commission.

Carl Bildt remains sceptical that any changes can come any time soon. " I have no illusions that the Russians will change in the shortest time perspective. This will stay in the agenda for a long time." The partnership agreement involves among other things trade, politics, economy and energy questions. The resumption of talks is expected to begin at the end of this month.# (Edited and translated from Dagens Nyheter, 11 Nov.)

USA and Europe meet to face economic crises

Amidst the euphoria of Barack Obama's election as new president of United States comes a sobering call for immediate transition in the White House, to institute measures needed to stabilise the economy and for the European Union leaders to formulate a common position.

The economic crisis characterised Barack Obama's presidential campaign and will determine his manoeuvrings room during a greater part of his presidential mandate, wrote Dagens Nyheter(http://www.dn.se/) in its editorial today. In order to cope with the acute economic crises, he will have to allow the budget deficit to swell. The new stimulant package could be the biggest in modern times and possibilities for reform limited.

Obama will have to caution the Americans not to consume beyond their means and sanitise the budget. There is the danger that he might not be able to control expenditures in the light of expectations for "change" which had become his campaign slogan. Her may succumb to populist demands by a Democratic majority in the US Congress, such as trade protection to shield the US domestic economy.

On the other side of the Atlantic, the European Union heads -of -state are meeting to try to formulate a common position before the international economic meeting in Washington on Nov. 15 this year. The objective of the Washington meeting is to create guidelines for a new formulation of regulation and supervision of the financial markets and watch over institutions like the International Monetary Fund and the World Bank. It is popularly known as the Bretton Woods II, named after the big conference in Bretton Woods , USA in July 1944 after the World War II when international economic cooperation took form.

French President Nicolas Sarkozy is one of the initiators and host of the meeting, in competition with Britain's Prime Minister Gordon Brown on who can best save Europe and the rest of the world from a financial meltdown. The French wants to see better regulation of the finance markets, although obviously not over-regulated to prevent efficiency. When the finance ministers met earlier, countries like the United Kingdom, Sweden and Finland criticised the French proposal for being too detailed and centralised.# (Edited translation made from DN's editorial)

Barack Obama is new President of United States

United States has made history today with the election of African-American Senator Barack Obama to the highest office, the Presidency. The voter turnout was unprecedented, the election process was smooth and the result was uncontested. Republican candidate John McCain conceded and urged the Americans to work together to support the new president-elect.

At no other time in America's history, will a new president face tremendous problems as will Barack Obama. United States' economy has plunged to the bottom and it will take tremendous efforts to create stability and confidence not only domestically, but more importantly abroad with countries that are closely dependent on the US economy. In his maiden speech as newly elected president, Obama told the Americans that it will take time, maybe not a year or two, or even one mandate to bring America back to a position of economic dominance.

Even more urgent on the new president's agenda will be measures taken in the security field as it faces two unresolved wars : Afghanistan and Iraq. The situation in Afghanistan has become untenable and volatile with the escalating violence claiming civilian lives everyday. In Iraq, it will be a fulfillment of an agreement with the Iraq leadership for a military retreat without jeopardising USA's own interest in the region. There are other urgent issues to focus on, as in the case of Iran and North Korea's nuclear programs.

In the field of energy, USA felt the cost impact of imported oil that has severely affected the American consumers. It has also shown how vulnerable and dependent the US economy has been on oil coming especially from unfriendly country-sources. Even high on the agenda is the need to tackle the threat of global warming. Domestic production of oil must be seen in the light of environmental balance and caution.

The last, but not least on the top agenda of the new Democratic presidency is health care reforms. It is reported that around 47 million Americans have not health care security. Health care security is often tied to one's employment and today when many Americans are jobless, the problem assumes a greater urgency. Companies forced to tighten the belt are passing on the health care problem to the employees themselves.

The world will watch with great anticipation how President-elect Barack Obama will tackle these major issues and whether America can become great again.#

The urgency of a diplomatic presence

Sweden opens an embassy in beleaguered Afghanistan, a positive move towards support for the democratisation and peace-creation initiatives in that country. This symbolises the Swedish commitment in peacekeeping operations far away from its Nordic borders, writes Dagens Nyheter today. Sweden is one of forty countries that contributed soldiers to the peacekeeping effort.

The NATO-led initiative consists of 52,000 men and women working under the Isaf or International Security Assistance Force, under a direct mandate from the UN, to help Afghanistan President Hamid Karzais' western-friendly government to uphold and maintain security in the country. At present, there are 375 Swedish soldiers participating in the peacekeeping operations based in Camp Northern Lights in Mazar-i-Sharif in northern Afghanistan.

Last Thursday, Swedish Foreign Minister Carl Bildt visited Afghanistan and the Camp Northern Light to see the actual condition of the Swedish soldiers and mostly to meet with the Afghan leaders. He said that "the Swedish soldiers are making an importance contribution for security in the area, and that they are very professional."

The Swedish aid to Afghanistan is around 400 million Swedish crowns, channeled mainly through international organs and help organisations. One-third is reserved for the northern part of the country. The aid money is earmarked for education, improvement of women's position and infrastructure work.

Seven years after the United States put a stop to the Islamic tyrannical leadership, the number of Taliban-directed attacks have increased, claiming the lives of hundreds of civilians. Foreign aid workers have been kidnapped and murdered in what appears to be a well-designed attempt to terrorise humanitarian workers and help organisations. The Talibans have succeeded to take over the southern and eastern parts of the country. At the same time that the peacekeeping soldiers protect the local population, they must also work to reduce the local support for the Talibans. It raises a question on why some local people still support the Islamic extremists.

The opening of a Swedish Embassy in Kabul is a positive development even if the security situation is far from satisfactory. The diplomatic move has sent the right signal to the world, that an international community investing both economically and emotionally in Afghanistan's young democracy is not giving up. (With translations from Dagens Nyheter, 2 Nov. 2008)