May 18, 2012

THE LUTHERAN NORTH:

Wealthy Sweden spending too little: policy adviser (Niklas Pollard and Johan Sennero, 5/14/12, Reuters) 

Sweden's centre-right coalition government is being too tight-fisted with public finances that are likely to remain strong for years to come, a think tank charged with evaluating policy said on Monday.

The Swedish Fiscal Policy Council, a state agency that evaluates government policy, said it saw little risk the country would breach spending ceiling rules in the coming years and instead urged the government to slacken spending constraints.

Unlike most countries in Europe, strong export revenues and firm domestic demand have helped Sweden rapidly shrink its debt as a percentage of gross domestic product (GDP) over the past decade, leading to rising net wealth for the public sector. [...]

While relentless austerity measures are driving debt-laden countries in the euro zone into recession, the government forecasts Swedish public debt to fall to 37.7 percent of GDP this year and a mere 22.5 percent in 2016.
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Posted by at May 18, 2012 6:08 AM
  

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