Elisabeth Svantesson’s clothes match the white snow when she is photographed in the sun on the roof of the Ministry of Finance in Stockholm.
– Now it’s turning around, she says.
She is referring to the light returning. But there are also bright spots in the economy.
Inflation is on the way down and the assessors agree that the Riksbank will lower the interest rate considerably during the year. Despite that, it is too early for households to blow their breath, according to the finance minister.
– The last round is not won against inflation, things can happen with energy prices and geopolitics that make it more expensive again.
“One of the most difficult 19 January in a long time”
Although inflation is not as high, prices remain at a high level, as do mortgage rates.
– January 19 is usually called the poorest day of the year. Now it is one of the most difficult 19 January in a long time, she says.
On the 20th, child support comes as a rescue.
Elisabeth Svantesson herself has a mortgage, on the apartment in Örebro and the holiday home in Nora, but notes that she is privileged. But there was a time when the 20th was important even to her.
– Me and my husband, we have been together for 40 years and have three children, had many tough years during the 90s. We had to turn over every penny. So I know what it’s like to have very small margins, she says.
Targeted interventions
She herself is convinced that the restrained fiscal policy has contributed to suppressing inflation. She thinks that both the government and the social partners have taken their responsibility.
– It is too early to say whether the spring amendment budget will be more expansive. But there is room to make “targeted efforts” if necessary, she says.
In that case, it is mainly about helping people who lose their jobs through, for example, investment in education. The government expects that roughly 40,000 more people will be unemployed in 2024 compared to last year.
Some who, on the other hand, have not taken their responsibility according to Elisabeth Svantesson, are the banks.
– It is clear that the banks must make a profit, otherwise we will have a weak financial system. But these enormous profits, which are now distributed, stand out, she says.
“Should have done more”
The news agency Bloomberg expects that the major Swedish banks will distribute close to SEK 90 billion this year. That is 17 billion more than last year and as much as Sweden’s entire defense budget.
This summer, Elisabeth Svantesson had a conversation about the profits with several Swedish major bank managers. Now she is disappointed.
– You clearly should have done more for the customers. It’s not rocket science. It is unreasonable that the banks are so tone-deaf when so many are struggling, she says.
She has dismissed the Social Democrats’ proposal for a bank tax. Instead, she believes in bringing about increased competition. The government has put forward proposals that, among other things, will make it easier and cheaper to change banks.
– We have also given the Swedish Competition Authority extra money to shine a light on competition, but I do not rule out that more needs to be done politically, she says.