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POLITICS

How Stefan Löfven lost his hold on the Swedish parliament

Prime Minister Stefan Löfven has weathered the decline of social democracy in Europe, the rise of the far right and even the Covid-19 pandemic, but he finally tripped up on Monday, losing a historic vote of no confidence in Sweden's parliament.

How Stefan Löfven lost his hold on the Swedish parliament
Stefan Löfven in the Riksdag. Photo: Henrik Montgomery/TT

The 63-year-old Löfven, a former welder and union leader with the square build and nose of a boxer, guided the Swedish left back to power in 2014, and then hung on by moving his party closer to the centre-right after the 2018 elections.

A master of consensus for some, a dull and visionless party man for others, he finally fell out with the Left Party propping up his government, becoming the first Swedish government leader to be defeated by a no confidence vote.

“Sweden is in a difficult political situation, a very difficult one,” Löfven told a press conference following his defeat.

He has a week to choose between elections or resignation. It may however be too early to count out the man who emerged victorious from elections deemed lost in 2018, and it’s possible his negotiating skills could forge a new majority.

Born in Stockholm in 1957, poverty forced his single mother to give him up when he was 10 months old to a foster family in Sollefteå, 500 kilometres (310 miles) north of the capital, where his foster father was a factory worker.

He became a welder and spent 15 years in a defence factory, and head of the metal workers’ union from 2006 to 2012.

‘Houdini’

While the traditional left struggled in Europe — only six social democratic or socialist heads of government remain in the 27-member EU — Löfven managed to stay on top, even though he confused supporters by moving to the right, earning a reputation as a “right-wing socialist”.

“Stefan Löfven could go down in history for his inventiveness and willingness for sacrifices to keep the Social Democrats in power,” political commentator Ewa Stenberg wrote in Dagens Nyheter newspaper at the weekend.

“The Prime Minister has survived many crises,” Stenberg said, adding that he now faces his greatest test so far.

“He now needs to do the political equivalent of what escape artist Harry Houdini did over a hundred years ago,” she said, stressing several seemingly impossible political knots had to be untied.

While controversial, the decision to mitigate the Covid-19 pandemic with mainly non-coercive measures was not what weakened him.

In fact, the Swedish strategy, promoted by state epidemiologist Anders Tegnell, boosted his ratings in opinion polls, even as the death toll rose to over 14,000 in the country of 10.3 million people, a far worse toll than in Nordic neighbours.

Challenging the Swedish model

The political crisis erupted on Thursday when the Left Party, which has propped up the government in parliament, said it was ready to support a motion of no confidence against the prime minister, even if it meant mixing votes with those of the right-wing parties and the far-right Sweden Democrats.

The reason was a preliminary plan to reform rent controls, potentially freeing landlords to set rents for new apartments.

On the left, the proposal is considered at odds with the Swedish social model and a threat to tenants’ rights.

While having become accustomed to threats from the Left Party, which until now have never materialised, Löfven was trapped as he also felt bound by a deal signed with two centre-left parties, the Centre Party and the Liberals.

The deal included proposals for liberal market reforms which irked the Left Party, and secured power for the Social Democrats but it was also seen as a move to the right.

And it reminded people of another perceived lurch to the right in November 2015, when the government abruptly closed the doors to most immigrants after Sweden had already taken in hundreds of thousands of refugees, notably from Syria.

By Marc Preel/AFP

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WORK PERMITS

Business leaders: Work permit threshold ‘has no place in Swedish labour model’

Sweden's main business group has attacked a proposal to exempt some jobs from a new minimum salary for work permits, saying it is "unacceptable" political interference in the labour model and risks seriously affecting national competitiveness.

Business leaders: Work permit threshold 'has no place in Swedish labour model'

The Confederation of Swedish Enterprise said in its response to the government’s consultation, submitted on Thursday afternoon, that it not only opposed the proposal to raise the minimum salary for a work permit to Sweden’s median salary (currently 34,200 kronor a month), but also opposed plans to exempt some professions from the higher threshold. 

“To place barriers in the way of talent recruitment by bringing in a highly political salary threshold in combination with labour market testing is going to worsen the conditions for Swedish enterprise in both the short and the long term, and risks leading to increased fraud and abuse,” the employer’s group said.   

The group, which represents businesses across most of Sweden’s industries, has been critical of the plans to further raise the salary threshold for work permits from the start, with the organisation’s deputy director general, Karin Johansson, telling The Local this week that more than half of those affected by the higher threshold would be skilled graduate recruits Swedish businesses sorely need.   

But the fact that it has not only rejected the higher salary threshold, but also the proposed system of exemptions, will nonetheless come as a blow to Sweden’s government, and particular the Moderate Party led by Prime Minister Ulf Kristersson, which has long claimed to be the party of business. 

The confederation complained that the model proposed in the conclusions of the government inquiry published in February would give the government and political parties a powerful new role in setting salary conditions, undermining the country’s treasured system of collective bargaining. 

The proposal for the higher salary threshold, was, the confederation argued, “wrong in principle” and did “not belong in the Swedish labour market”. 

“That the state should decide on the minimum salary for certain foreign employees is an unacceptable interference in the Swedish collective bargaining model, where the parties [unions and employers] weigh up various needs and interested in negotiations,” it wrote. 

In addition, the confederation argued that the proposed system where the Sweden Public Employment Service and the Migration Agency draw up a list of exempted jobs, which would then be vetted by the government, signified the return of the old system of labour market testing which was abolished in 2008.

“The government agency-based labour market testing was scrapped because of it ineffectiveness, and because it was unreasonable that government agencies were given influence over company recruitment,” the confederation wrote. 

“The system meant long handling times, arbitrariness, uncertainty for employers and employees, as well as an indirect union veto,” it added. “Nothing suggests it will work better this time.” 

For a start, it said, the Public Employment Service’s list of professions was inexact and outdated, with only 179 professions listed, compared to 430 monitored by Statistics Sweden. This was particularly the case for new skilled roles within industries like battery manufacturing. 

“New professions or smaller professions are not caught up by the classification system, which among other things is going to make it harder to recruit in sectors which are important for the green industrial transition,” the confederation warned. 

Rather than implement the proposals outlined in the inquiry’s conclusions, it concluded, the government should instead begin work on a new national strategy for international recruitment. 

“Sweden instead needs a national strategy aimed at creating better conditions for Swedish businesses to be able to attract, recruit and retain international competence.”

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