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WHAT CHANGES IN SWEDEN

KEY POINTS: Everything that changes in Sweden in October 2022

A new government, new employment rules, new vaccine and a visit from the Dutch royals. Here's what's changing in Sweden in October.

KEY POINTS: Everything that changes in Sweden in October 2022
Dutch King William Alexander and Queen Maxima their glasses during a dinner with 150 Dutchmen of fifty-years-old who were invited on the occasion to mark the 50th birthday of the king on April 28, 2017 at the Royal Palace in Amsterdam. (Photo by Remko de Waal / ANP / AFP) / Netherlands OUT

Sweden gets a new government 

Judging by the optimistic statements made by Moderate leader Ulf Kristersson, it looks like an agreement could be reached over Sweden’s next government sooner rather than later, with Kristersson installed as Prime Minister well before Halloween at the end of this month. 

The Sweden Democrats are getting eight of the sixteen chairmanships and deputy chairmanships of parliamentary committees the right-bloc is entitled to, which suggests that far-right party will be a powerful support party rather than part of the ruling coalition. Whether the Liberal Party will be included in the government, with party leader Johan Pehrson as education minister, remains to be seen.

The new government will have to get straight to work on the budget for 2023. Outside of an election year, a Swedish government would submit its budget to the parliament by the end of September. It will also have to quickly get to work on convincing Turkey and its parliament to ratify Swedish Nato membership.  

In the election campaign, the Moderate Party also promised to have a system of “high-cost protection” for electricity consumers in place by November 1st. If it is to have a chance of meeting this pledge, it will have to move rapidly.

Swedish delegation goes to Turkey for Nato meeting 

On October 5th a delegation from Sweden’s Justice Department is travelling to Turkey for a meeting Turkey’s Anadolu news agency is calling a meeting on “the extradition of criminal terrorists”. 

Sweden’s outgoing foreign minister Ann Linde said on September 27th that the talks with Turkey were “moving along nicely”. 

“My judgement is that Turkey will say ‘yes’ to Swedish Nato membership, however I don’t know when that is going to be.”

Changes to Sweden’s first-in, last-out employment rules come into force

The reform to Sweden’s Employment Protection Law, lagen om anställningsskydd or LAS, comes into force on October 1st. The reform was one of the key policies the Centre Party drove through as part of the price for supporting the outgoing Social Democrat-led government. 

Under the reform, employers who need to slim down their workforce during a business downturn gain the right to lay off three employees outside of the old first-in, last-out employment rules. These require employers to lay off those employed more recently before those who have worked for the employer for a long time. 

In exchange for the looser rules, a new system will also come into force giving employees the right to education to improve their skills so they can find a new job, perhaps in a different industry. The new system is expected to cost the government between six and nine billion kronor a year. 

Employees will be able to apply for support for studies to learn new skills from October 1st for courses starting from January 2023. 

Sweden to start using the new BA.4 and BA.5 Comirnaty vaccine 

Sweden’s Public Health Agency expects to take delivery of the new Pfizer/BioNTech vaccine adapted to target the new BA.4 and BA.5 subvariants of the Covid-19 virus. The vaccine will be distributed to Sweden’s regional health authorities to be given out as part of the höstdosen, or autumn dose, which is offered for all citizens over the age of 18 (but only actively recommended to those in a risk group or over the age of 65). 

State visit by Dutch King and Queen 

The Netherlands’ King William-Alexander and Queen Maxima are visiting Sweden on a state visit from October 11th to October 13th. The state visit is, according to a press release from Sweden’s Royal Court intended to “strengthen the long-running and excellent connections between Sweden and The Netherlands which go back to the 1600s”. 

Reforms to which agency is responsible for Sweden in a crisis

From October 1st, Sweden is reforming its crisis preparedness system, with 60 agencies now classified as “crisis preparedness agencies”.

All of these agencies are required to work together with the Swedish Civil Contingencies Agency (MSB) and the Swedish Armed Forces to prepare for crisis situations or war, and to coordinate if a crisis or war actually happens. 

Sweden’s 21 regional governments will also be grouped into six new “civil areas” or civilområde, with the governments of Norrbotten, Örebro, Stockholm, Östergötland, Västra Götaland, and Skåne each taking charge of their surrounding area in the event of a war. 

Prisoners on early release can be returned to jail more rapidly if they do not behave

From October 1st, the Swedish Prison and Probation Service will gain greater powers to put prisoners on early release back behind bars without having to first have the decision approved by a judge at the supervisory board or Övervakningsnämnden. Currently, a decision by a judge is required before the service can dispatch police to apprehend a prisoner. 

The prison service has complained that the delay can cause problems when prisoners, for example, visit or stalk the victim of their crime, particularly in domestic violence cases. 

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WHAT CHANGES IN SWEDEN

Tax deadline and Eurovision tension: What changes in Sweden in May?

Swedish passports are more expensive, but on the other hand the economy could be on the road to recovery depending on what happens on a few crucial dates in May. The Local rounds up the main points you need to know.

Tax deadline and Eurovision tension: What changes in Sweden in May?

Don’t miss: Sweden’s tax deadline

Tax returns were sent out weeks ago, so you may already have declared your taxes. But if you haven’t, May 2nd is the final deadline. 

If you’re unable to file your tax return on time, then you need to apply for a two-week extension by the May 2nd deadline. If the Tax Agency approves your extension, you’ll have until May 16th to submit it. You can apply for this extension online using your digital ID, or call the agency.

If you’ve already submitted your taxes, but you realise you need to make changes, you can do so online until December 18th. In fact, you can make changes to tax returns from up to six years back, but in that case you need to do so by sending a letter to the Tax Agency.

Before you click submit, make sure you’ve not missed out on these essential deductions.

Time to slash the interest rate?

Sweden’s central bank, the Riksbank, will announce its next decision on the country’s so-called policy rate on May 8th. 

This is a crucial announcement as the policy rate is the bank’s main monetary policy tool. It decides which rates the banks of Sweden can deposit in and borrow money from the Riksbank, which in turn affects the banks’ own interest rates on savings, loans and mortgages. 

Sweden’s policy rate is relatively high at the moment, 4.0 percent (the highest since 2008), because of the Riksbank trying to bring down inflation. If bank interest rates are high, it’s expensive to borrow money, which means people spend less and as a result inflation drops.

But now that inflation is on its way down, Riksbank chiefs themselves have said that they think it’s likely that they will cut the policy rate in either May or June, and several economists predict that the cut is going to come sooner rather than later, which would mean in May.

Once the cut comes, you should be able to see a knock-on effect on, for example, the cost of your mortgage, so lenders and home-owners will be keeping a close eye on what happens on May 8th.

Swedish passports get 25 percent more expensive

The cost of getting a Swedish passport was to be hiked by 25 percent on May 1st, from 400 to 500 kronor.

The higher fee applies to all appointments on or after May 1st, even if you booked them before that date.

According to a government press release, the higher fee is necessary to “maintain the level of service” and ensure that the police authority’s revenue from the fees covers the cost, as passport operations are funded by fees.

Controversial Eurovision Song Contest to be held in Malmö

The Eurovision Song Contest – Europe’s by far biggest music competition – is heading to Malmö Arena in southern Sweden in May, with the first semi-final kicking off on May 7th, followed by the second semi-final on May 9th and culminating in the final on May 11th. 

It’s a highly-anticipated event, albeit this year with a mix of joy and trepidation. 

The row over whether Israel should be allowed to participate after its brutal retaliatory attack on Hamas and Gaza has led to protests (at least half a dozen applications have been filed for demonstration permits) and artists pulling out of performing at Eurovision side events.

Swedish broadcaster TV4 reports that ten percent of volunteers have already pulled out, and Moriskan, an event venue that was set to organise Euro Fan Café for Eurovision fans, has also cancelled its participation, despite being in the middle of Eurovision Village. “Our assessment is that we could risk our future if we go through with the event,” its CEO Ozan Sunar told the Sydsvenskan newspaper.

Malmö is home to more than 360,000 people and 186 nationalities, and a large part of the city’s population is of Palestinian origin.

Add to that the fact that security was already likely to be tight at the event, after Sweden last year raised its terror alert to four on a five-point scale.

More than 100,000 people are expected to visit Malmö during Eurovision week, and police reinforcements are being brought in from Denmark and Norway.

Swedish economy set for Swift revival?

We hesitate to write this, but Eurovision may in fact not be Sweden’s most significant music event of the year, or even in the month of May. 

In mid-May, Taylor Swift is coming to Stockholm. The megastar is set to play three gigs at Friends Arena, on May 17th-19th, the only stop she’ll make in Scandinavia as part of The Eras Tour. And we’re not just keeping an eye on this as Swifties, but because of the economy.

“Swiftonomics” has already become a global concept, as cities where she plays tend to see a brief bump in revenue as fans descend on the city, buying hotel tickets and eating in restaurants. She’s expected to have a 417,900,000 kronor impact on the Swedish capital, according to the Stockholm Chamber of Commerce. A similar phenomenon was seen last year, when Beyonce launched her global tour in Stockholm.

Whether this is good or bad depends on your viewpoint. On the one hand, it kicks the economy into action, which could bring a much-wanted GDP boost. On the other hand, it may drive up the inflation rate at a point when Sweden and the Riksbank are hoping for the opposite. 

That said, it has been questioned how much of an effect single events like these actually has on inflation.

Regardless, expect it to be a talking point in the coming month. And if you’re planning a trip to Stockholm for reasons other than Taylor Swift, you may want to consider scheduling your visit for dates other than May 17th-19th to avoid the hordes of fans and marked up hotel prices.

Holidays and other dates

May 1st, a day for celebrating workers’ movements, has been a public holiday in Sweden since 1939. Expect to see rallies organised by left or centre-left parties and organisations, but otherwise not much happens on May 1st in Sweden other than most people having the day off. 

Ascension Day, which this year falls on May 9th, is also a public holiday in Sweden. Known as Kristi himmelfärdsdag in Swedish (or colloquially Kristi flygare – “flying Christ”), it marks the day when Christians believe Jesus ascended into heaven. But as Sweden is a relatively secular country, unless you don’t go to church you’re unlikely to notice anything remarkable – again, other than getting a day off.

Mother’s Day in Sweden falls on the last Sunday of May, this year May 26th. It is not a public holiday.

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