Apoteksgruppen sold to Euroapotheca

Lithuania’s Euroapotheca, which owns around 450 pharmacies in the Baltics, Ukraine and Poland, has signed an agreement with the Swedish government to buy Apoteksgruppen i Sverige Holding (AGHAB) for SEK 1.7 billion.

AGHAB provides franchise and management to 189 pharmacies operating under the Apoteksgruppen brand and will buy out 159 of the 189 pharmacies.

Swedish Enterprise Minister Mikael Damberg is pleased with the process and the price.

The deal is subject to approval by the Swedish regulatory authorities.

Hesitant minister

Sweden’s central bank, the Riksbank, and the Financial Supervisory Authority (Finansinspektionen) are pushing for tougher amortisation requirements in order to curb household debt but Green Housing Minister Peter Eriksson is hesitant, given that the property market is starting to balance.

The National Board of Housing, Building and Planning (Boverket) has said its forecast that 76,000 homes will be built in Sweden in 2017 will not be realised. Ericsson is not concerned, however, saying: “Even if “just” 70,000 homes are built this year, it is still more than last year. And it is only a couple of years since Boverket said we could not build more than 40,000 homes a year.”

A drop in the number of expensive homes under construction is not a problem. On the contrary, it will allow more affordable homes to be built, argues the minister, who does not hold with analysts who warn of a price collapse. “The Swedish economy is strong, unemployment is falling and global growth is also strong. There is little to suggest that prices will collapse,” he says

Minister threatens to toughen up law

Finance Minister Magdalena Andersson has turned on the financial elite who shop around the world in search of the lowest taxes and is prepared to toughen legislation.

“It is completely unacceptable that people spend so much … time and energy to avoid paying tax,” she says. However, “The problem is that if you are really going to make it difficult to tax plan then you need to go outside the EU and introduce capital restrictions. When companies actively exploit the possibilities, it means tougher legislation makes it more difficult for everyone who runs a company.”

Östling steps down

“What the hell do I get for my money, not much,” were the words uttered by Leif Östling, chair of the Confederation of Swedish Enterprise, when asked by SVT about his tax arrangements in Malta and Luxembourg, revealed during the Paradise Papers leak in November.

He announced yesterday that he would leave his post as chair although would not answer any follow-up questions. The official picture is that he has successfully managed to launch a new power and decision-making structure within the Confederation. However Dagens Industri (DI) reports that a number of representatives from the board made it clear that confidence in him had been lost following his comment.

Another source tells DI that the relationship between CEO Carola Lemne and Leif Östling did not work. “From day one he tried to manoeuvre her out of the way, but failed,” says the source. The struggle between the chair and CEO also reflects a deeper conflict between industrial and service companies. The Association of Swedish Engineering Industries and the Swedish Association of Industrial Employers backed Östling after the revelations while criticism came from Almega – the Employers’ Organisation for the Swedish Service Sector and the Association of Private Care Providers.

There is a general understanding that the Confederation is in trouble and has been described as outdated and slow to change. The change of chair could also lead to a change of CEO, writes DI.

Riksbank believes the krona will strengthen

The Riksbank’s forecast indicates the krona will strengthen. The current weakening could be temporary and the market ought not to read too much into recent fluctuations, said first deputy governor of the Riksbank Kerstin af Johnick to journalists in Copenhagen on Tuesday.

She also said that Swedish house prices may cool down somewhat but the Riksbank does not believe there will be a major drop in house prices.

22 years needed to save for property in Stockholm

A new report from Mäklarhuset shows that the difference in how many years it takes to save up for a deposit for a house depends on the city and profession, reports SvD. The report shows that it takes the longest time in Stockholm, Gothenburg and Uppsala. For an auxiliary nurse in Stockholm it takes 22 years to save up the deposit.

Erik Wikander, CEO of Mäklarhuset, says that it is time for politicians to add stimulus to the threats. “When there is no functioning housing market and a balance between owned and rented property, it creates a pressurised situation for young people. The regulations that have been brought in over the past five years have focused on limiting debt. However there needs also to be stimulus so that the entire housing market is used,” says Erik Wikander.

Forecast: government misses target

The government’s budget is putting pressure on state finances and is leading to surplus targets being missed, says the Swedish National Financial Management Authority (ESV).

According to ESV, the surplus in the public sector’s financial savings will fall from 0.9% this year to 0.6% next year as a result of the government’s budget bill, which is expected to reduce tax revenue and increase expenditure. This means the government will not achieve the surplus target of 1% over a business cycle.

Liberals outline reform of labour laws

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.