Defence Minister Peter Hultqvist has told public service broadcaster SVT that the government will be placing an SKr 8.2 billion order for two new submarines from Saab Kockums. The minister announced the news while visiting the Karlskrona shipyard on Tuesday, although a formal decision will not be made until Thursday. The submarines will be delivered in 2022.
Following Sweden’s cancellation of the defence co-operation agreement with Saudi Arabia, Foreign Minister Margot Wallström and Enterprise Minister Mikael Damberg have invited some 40 business leaders to a meeting on Thursday to discuss how export companies can develop their business in the Gulf States.
Dagens Industri (DI) reported last week the diplomatic row has meant that a number of companies have seen contracts being terminated. However, Swedish industrial group Sandvik has not been affected, according to chief executive Olof Faxander, who have been invited to the meeting, but who is unable to attend. He says to the business daily: “We believe that trade, openness and a presence in many countries around the world leads to economic development and improves conditions in those countries”. He expects Swedish firms will continue to develop their businesses in the region, which offers significant opportunities for growth.
The Swedish Peace and Arbitration Society (SPAS) has welcomed the Swedish government’s decision to cancel the defence deal with Saudi Arabia and is now calling on the government to scrap other agreements, such as the one Sweden has with Thailand. The co-operation agreement is linked to Saab’s sale of an integrated air defence system with Gripen fighter jets and the Erieye radar reconnaissance system.
Following the military coup last year, Thailand’s PM, General Prayuth Chan-ocha has promised elections will be held but Human Rights Watch recently noted that the country is descending deeper into dictatorial rule. And, for officials at the Swedish Ministry of Defence, the situation in Thailand is problematic.
“We are preparing the question, on what form of co-operation we should have,” a ministry spokesman says.
Sweden currently has military co-operation agreements with 32 countries.
The Swedish Riksbank has gone from being the best among its peers in 2008 and 2009 at forecasting inflation to lagging behind its peers in two-thirds of the predictions, writes Bloomberg after comparing forecasts by six central banks between 2008 and 2013. The Riksbank’s errors can be traced back to 2010 when Governor Stefan Ingves raised rates despite Europe being in the midst of the worst economic crisis since WWII, states Bloomberg.
Appearing before the Committee on Finance yesterday, Riksbank Governor Stefan Ingves tried to pour oil on troubled waters when he said a strong krona was unwelcome news in the current situation. Afterwards, he told the media that it would be helpful if the krona remained at current levels, in terms of bringing up inflation to the 2 per cent target.
Ingves also said the central bank was prepared to take further measures, although currency intervention was not his first choice.
IT Minister Mehmet Kaplan’s dream is that 90 per cent of Swedish households will have 100 Mbit/s access by 2020. Estimates suggest his plans could cost up to 40 billion kronor to realise.
In a move to reduce the cost, Kaplan proposes that broadband operators should be bound by law to open up their infrastructure to competitors wishing to expand in the same region.
Kaplan also proposes that the Swedish Post and Telecom Agency be given the powers to decide disputes regarding cables and land.
His plans will now be circulated for comment, after which the minister hopes the legislation will come into force on 1 July 2016.
The Silf/Swedbank Swedish Services Purchasing Managers’ Index (PMI) slipped to 56.7 in February from 57.9 in January, which had been expected. The business volumes sub-index rose while all other sub-indices fell.
Plans by the Swedish Post and Telecom Authority (PTS) to ensure telecom service providers provide continuity of service in the event of a power outage have infuriated the industry. TeliaSonera claims that back-up solutions would cost the operator hundreds of millions of kronor to put in place, while estimates suggest that Tele2 would have to invest half a billion kronor to provide such resilience.
Employer organisation the Swedish IT and Telecom Industries estimates the industry would need to invest two billion kronor in order to meet the criteria.
Late Tuesday evening, the airline Norwegian said it was cancelling all domestic flights in Sweden, Norway and Denmark because of the pilot strike. More than 35,000 passengers will be affected.
The airline has also cancelled all flights between the Scandinavian capitals. Some flights to European destinations may also be affected. Long-haul flights to the US and Thailand will operate as normal.
Norwegian has said it will lay off 800 flight attendants as of today, Wednesday.
The Swedish economy will grow at a faster pace than many have forecast, says the multinational investment banking firm Goldman Sachs, predicting “solid” economic growth of 2.9% this year and 3.6% in 2016. Falling oil prices and the sharp depreciation in the krona favour an industrialised, exporting country such as Sweden, argues the firm.