At their party conference this coming weekend, the Liberals will be calling for a change in labour laws, demanding that the Last In First Out principle be scrapped. New, flexible rules need to be introduced in order to encourage movement on the labour market and promote company growth, says the party.
It should be easier for employers to terminate employment for personal reasons, a higher number of employees should be excluded from job elimination and anyone who is made redundant should have a right to severance pay.
Anders Borg, the former finance minister, has warned of lower growth in the wake of Brexit and wants to see structural reform in Europe, which is lagging behind China and India, where GDP growth is around 5-6%.
Risk has increased following the UK’s referendum, and it is time for the EU to deliver on growth and jobs. “We are not just going to see strong opposition to the EU in the Netherlands and Austria, we will see it in Germany and France as well,” he said in Almedalen on Tuesday.
Mr Borg, who is an advisor to Citi, also said that Sweden needed to sort its housing market out and called on Peter Eriksson, the housing minister, to re-start cross-party talks. He even advised Swedish politicians to take a trip to Finland to study the labour market there.
The former minister stressed the need for Sweden to boost growth, believing that if the country could return to growth of 2.5%, living standards would increase two-fold within 30 years.