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Gap widening between rich and poor: study

The gap between the rich and poor in Sweden has grown considerably in recent years, according to a new report from the country's largest labour group.

Between 1991 and 2007, Sweden’s richest 10 percent saw their disposable incomes shoot up by 88 percent, while the spending power of the country’s poorest 10 percent only increased by 15 percent, a new study by the Swedish Trade Union Confederation (LO) finds.

According to the report, real incomes for gainfully employed Swedes have increased by an average of 3.3 percent a year during the last six years. The report also found that there were no significant differences between income increases for blue collar and white collar workers.

But those who are ill, out of work, or living on sickness compensation (sjukersättning) have only seen their incomes increase by an average of 0.86 percent a year over the same period.

Incomes for students have increased by an average of 1.26 percent.

“Developments over the years gone by have to a large extent seen a redistribution from those who can’t work and from those who want to study to those who are gainfully employed,” write LO researcher Anna Fransson and LO working life division head Irene Wennemo in an article published in the Dagens Nyheter (DN) newspaper.

Among the ill, unemployed, and retired, the risk of slipping into poverty has doubled from 8 to 16 percent between 2002 and 2007.

The study defines people living in poverty as those with incomes less than 60 percent of Sweden’s median income.

“The explicit goal of the centre-right government has been to increase the economic incentives to work by making things worse in these groups. A similar development occurred during the previous Social Democratic government through a reduction in compensation levels,” write Fransson and Wennemo.

The wider income disparities are the result of a political choice, according to the authors, who add that all signs indicate that the trend has increased even more since 2007.

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TRADE

Norway and UK strike post-Brexit trade deal

Norway and the United Kingdom have struck an agreement on a free trade deal, the Norwegian government announced on Friday.

Norway and UK strike post-Brexit trade deal
Erna Solberg outside 10 Downing Street in 2019. (Photo by LUDOVIC MARIN / POOL / AFP)

Negotiations over the agreement have been ongoing since last summer, and the Norwegian government said that the deal is the largest free trade agreement Norway has entered into, outside of the EEA agreement. 

“The agreement entails a continuation of all previous tariff preferences for seafood and improved market access for white fish, shrimp, and several other products,” the Ministry of Trade and Industry said in a statement.  

One of the sticking points of the negotiations was Norway wanting more access to sell seafood in the UK, while the UK wanted more access to sell agricultural products like cheese.

The latter was a problem due to Norway having import protection against agricultural goods. 

“This agreement secures Norwegian jobs and value creation and marks an important step forward in our relationship with the UK after Brexit. This is a long-term agreement, which at the same time helps to accelerate the Norwegian economy,” Prime Minister Erna Solberg said in a statement.  

 The United Kingdom is Norway’s second most important single market, after the EU. In 2020 Norwegian companies exported goods worth 135 billion kroner to the UK and imported around 42 billion kroner of goods from the UK. 

Norway has given Britain 26 quotas on agricultural products, but not for mutton and beef. The agreement does not increase the UK’s cheese quotas, state broadcaster NRK have reported. 

The agreement will still need to be signed by both the Norwegian and UK parliament. 

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