Swedish welfare state survives privatisation

Since Sweden elected a centre-right government in 2006, the country has seen a number of liberal reforms, including the privatisation of the Swedish vodka company, Absolut.

Despite these far-reaching changes, the Swedish welfare state is still going strong through, according to a report by the AFP.

Barbro Hedvall, an analyst for newspaper Dagens Nyheter said: “Swedes are very pleased with, and very strongly support, the welfare state.”

Prime Minister Fredrik Reinfeldt’s coalition government has enacted a number of changes since coming into power in September 2006, notably the abolition of taxes on wealth and property. In addition, the coalition has reduced income tax, as well as introduced tax breaks for domestic workers and tighter sickness benefits.

The government’s main push has been towards creating jobs. Premiums for unemployment insurance have increased while payments to the jobless have decreased in foster an environment that encourages people to seek work.

The government has also been engaged in massive privatization, earning the government $25 billion.

Experts say that despite these changes, the welfare focus of the state remains constant. Universal healthcare and free education remain strong points for the government.

“The foundations of the welfare state have not changed, they’re still the same. We all pay into a joint pot for sickness insurance, parental leave, and when it comes to unemployment insurance it’s always been optional,” Hedvall said.