Government considering scrapping PPM

The government wants to redesign the premium pension system, and may even consider scrapping it. Yesterday Prime Minister Stefan Löfven referenced the Falcon Funds scandal in December 2015 while making it clear that the system needed to change.

However Social Security Minister Annika Strandhäll says the government respects the pension agreement and that any changes require agreement from the alliance parties. “We must do what should have been done a long time ago. Criminal elements should not be able to grow rich on Sweden’s pension savers,” she says.

The alliance parties have rejected scrapping the PPM system but agree that tougher rules are needed.

Minister hints at reforms

GDP in Sweden grew by 1.0% in the fourth quarter of 2016, compared with the preceding quarter, and 2.3% compared to the same quarter in 2015, according to Statistics Sweden.

Growth in exports of goods and services accounted for much of the increase while imports fell slightly. Increased household consumption, public consumption and investments also contributed.

However the increase in GDP per inhabitant was lower: 0.7% from Q4 2015 to Q4 2016, compared with a total increase of 2.3%. “This shows that the rise in GDP is not only a result of the growth in population, contrary to what many people believe,” says Finance Minister Magdalena Andersson. She is satisfied with GDP growth of 3.3% for 2016, above most EU countries.

Andersson highlighted that there is a surplus of SKr 40 billion in the public finances, saying, “This is mainly the result of the government’s work.” She also hinted that if the next GDP forecast is higher then this could create scope for more reforms in the budget.