Swedish Industry Minister Maud Olofsson will be facing a tough parliamentary question session on Tuesday, Dec. 16, when the opposition Socialist Party demands to hear a clearer verdict on the bailout of SEK28 billion earlier promised to the car manufacturing industry. It is a question of whether the coalition government is going to pursue said bailout or is simply misleading the industry and the Swedish people.
"If it shows that the government's crisis package is not actually SEK28 billion as promised, then it is serious", says Tomas Eneroth, spokesman for the Socialist Party Industry Committee. He wants to see the bailout papers on Olofsson's table.
Last Thursday, Dec. 11 the coalition government through Finance Minister Anders Borg and Industry Minister Olofsson, presented the rescue package for the car industry which consists of a SEK28 billion financial injection.
The billions from the European Investment Bank (EIB) can not be loaned directly to either SaaB or Volvo since they are both owned by the American company Ford or GM, and not either to Opel in Germany. The problem is that they are under a common financial system with their respective US owners.
"It would mean that if (these car companies) were given the rescue money at this time and GM or Ford declares bankruptcy, the money would simply disappear into a black hole, without a cent left. This is a huge amount for Europe and even if both US companies were to survive, they could announce that they will develop new car technologies in Detroit, for which European taxpayers will not be too happy to get involved in, much less pay for," said Lars Holmquist, European car sub-contractor.
Holmquist believes that the Swedish government would want to build a new company, something of a Swedish car development type, with the state as primary owner and thereafter place the multi-billion rescue money into this new organisation designed to develop new technologies such as petrol-saving engines and hybrids. Then later, Saab and Volvo could be allowed to use these technologies to meet the present demand for environment-friendly vehicles. In this way, the Americans could not lay hands on the rescue money but could later avail of the results of the research.
As far as the EIB rescue money is concerned, the SEK20 billion is earmarked for the European car industry for 2009. The money will not be paid during a one year term but within a period of four years up to 2012. It is hoped that with several car manufacturers needing financial help, the amount promised by EIB will be increased accordingly.
(Translated and edited from Dagens Nyheter, 14 Dec. 2008)
Sunday, December 14, 2008
Thursday, December 11, 2008
Reduced aid can lead to war and terrorism, Ahtisaari warns
Nobel Peace Prize winner for 2008 Martti Ahtisaari of Finland reminded aid donors not to reduce or hold back on their commitment to development assistance because of the current economic crisis because this could lead to war and terrorism. He had a clear message to say after he received his peace award: "All conflicts can be resolved."
"We should not accept excuses from holders of political power. Peace is a question of will," he was quoted as saying. He warned at the same time that peace negotiators like him take too much attention instead of focusing on the parties in conflict. He says that this creates a wrong picture that peace comes from outside instead of inside.
He stressed that poverty and inequality are reasons for war and terrorism, reminding the rich donor countries that the current economic crisis should not be made an excuse for reducing aid to poor countries that are already suffering from hard climate changes and reduced world trade. " Hundreds of young people risk losing their jobs," he said. "If we don't do anything, this could create criminality, instability and war when all these young people lose hope."
To the US President-elect Barack Obama, he admonished prioritizing the resolution of the Middle East conflict.
"The international community's credibility is under challenge. We cannot pretend year after year that something is being done about the situation. We must have results."
Ahtisaari's accomplishments as peace negotiator are particularly significant in the following: In Kosovo, along with Russia and USA, succeeded with a peace agreement in 1999 that ended civil strife; In Aceh province in Indonesia, where a bloody conflict for independence raged for centuries, a peace agreement was signed in 2005; and Namibia in southern Africa, which after years of quiet negotiations got its independence in 1990. # (Translated and edited from Dagens Nyheter, 11 dec. 2008)
"We should not accept excuses from holders of political power. Peace is a question of will," he was quoted as saying. He warned at the same time that peace negotiators like him take too much attention instead of focusing on the parties in conflict. He says that this creates a wrong picture that peace comes from outside instead of inside.
He stressed that poverty and inequality are reasons for war and terrorism, reminding the rich donor countries that the current economic crisis should not be made an excuse for reducing aid to poor countries that are already suffering from hard climate changes and reduced world trade. " Hundreds of young people risk losing their jobs," he said. "If we don't do anything, this could create criminality, instability and war when all these young people lose hope."
To the US President-elect Barack Obama, he admonished prioritizing the resolution of the Middle East conflict.
"The international community's credibility is under challenge. We cannot pretend year after year that something is being done about the situation. We must have results."
Ahtisaari's accomplishments as peace negotiator are particularly significant in the following: In Kosovo, along with Russia and USA, succeeded with a peace agreement in 1999 that ended civil strife; In Aceh province in Indonesia, where a bloody conflict for independence raged for centuries, a peace agreement was signed in 2005; and Namibia in southern Africa, which after years of quiet negotiations got its independence in 1990. # (Translated and edited from Dagens Nyheter, 11 dec. 2008)
Thursday, December 4, 2008
No to clusterbombs, the Swedish dilemma
Over 100 countries - among them Sweden have signed in Oslo yesterday, an international agreement which forbids the use of clusterbombs. The so-called bombs contain minor bombs which explode close to the ground and covers a much larger area.
The convention which forbids the use, development and trading of clusterbombs was taken up in Dublin, Ireland in May last year. However, countries like the USA, Russia, China and Israel have not accepted the ban. Even Finland has not agreed to it.
Sweden has not shown the inclination to accept the prohibition when Norway brought it up two years ago. For one thing, Sweden has a type of clusterbomb, the Bomb Capsule 90, which is part of the Jas Gripen equipment. It weighs 600 kilos, inclusive of 118 kilo of explosive material which has a gliding, flying effect towards the target where around 72 minor bombs detonate when released.
However, in the middle of November Swedish Prime Minister Fredrik Reinfeldt stated that even Sweden will sign the agreement. He said that the decision is in line with Sweden's disarmament ambitions and on ban against anti-personnel mines.
The use of clusterbombs has been criticised for its military strength - that they could effectively strike at troop formations over a large territory - which is also its weakness. They are not precision weapons and they can hit both civilians and military targets. The wars in Kosovo, Iraq and Afghanistan have shown that not only personnel mines but even clusterbombs contributed to a huge humanitarian problem than other conventional weapons. It is also common that some minor boms do not explode when they spread, which leaves blind bombs that are more powerful and deadlier than landmines.
For Sweden, it would mean discontinuity in the use of Bomb capsule 90 and reduced effectivity of the Jas Gripen against any armed attacks against the country. It means that the Swedish defense must replace it with another kind of weapon to complement Jas Gripen's capacity.
In order to become legally binding, the international agreement requires the ratification by 30 countries. " As Chairman of the European Union in Autumn 2009, it is important that Sweden prioritises and with credibility expand the coverage of the agreement. We therefore expect us in the government already in spring 2009, to present a proposal to the parliament for a Swedish ratification," said Anna Ek, chairperson of the Swedish Peace.# (Edited and translated from Dagen Nyheter, 4 dec. 2008)
The convention which forbids the use, development and trading of clusterbombs was taken up in Dublin, Ireland in May last year. However, countries like the USA, Russia, China and Israel have not accepted the ban. Even Finland has not agreed to it.
Sweden has not shown the inclination to accept the prohibition when Norway brought it up two years ago. For one thing, Sweden has a type of clusterbomb, the Bomb Capsule 90, which is part of the Jas Gripen equipment. It weighs 600 kilos, inclusive of 118 kilo of explosive material which has a gliding, flying effect towards the target where around 72 minor bombs detonate when released.
However, in the middle of November Swedish Prime Minister Fredrik Reinfeldt stated that even Sweden will sign the agreement. He said that the decision is in line with Sweden's disarmament ambitions and on ban against anti-personnel mines.
The use of clusterbombs has been criticised for its military strength - that they could effectively strike at troop formations over a large territory - which is also its weakness. They are not precision weapons and they can hit both civilians and military targets. The wars in Kosovo, Iraq and Afghanistan have shown that not only personnel mines but even clusterbombs contributed to a huge humanitarian problem than other conventional weapons. It is also common that some minor boms do not explode when they spread, which leaves blind bombs that are more powerful and deadlier than landmines.
For Sweden, it would mean discontinuity in the use of Bomb capsule 90 and reduced effectivity of the Jas Gripen against any armed attacks against the country. It means that the Swedish defense must replace it with another kind of weapon to complement Jas Gripen's capacity.
In order to become legally binding, the international agreement requires the ratification by 30 countries. " As Chairman of the European Union in Autumn 2009, it is important that Sweden prioritises and with credibility expand the coverage of the agreement. We therefore expect us in the government already in spring 2009, to present a proposal to the parliament for a Swedish ratification," said Anna Ek, chairperson of the Swedish Peace.# (Edited and translated from Dagen Nyheter, 4 dec. 2008)
Thursday, November 27, 2008
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)
Saturday, November 22, 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"."
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"."
Monday, November 17, 2008
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.)
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.)
Friday, November 14, 2008
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)
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)
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