Swedish minority government will hold together for now

Significance

Curbing immigration is a central element in the agreement between the minority government and the far-right Sweden Democrats (SD) to secure their support in parliament. One year after elections, the administration’s problems include the high rate of inflation, a weakening currency and forecasts for economic growth and unemployment out of line with those for Sweden’s Nordic neighbours.

Impacts

• In foreign policy, an area where it used to punch well above its international weight, Sweden has taken a more centrist, passive role.
• The government has cut back on climate goals (where Sweden once led Europe), pushing nuclear power and cutting petrol and diesel taxes.
• Swedish business leaders’ verdict on Kristersson’s first year in power has been lukewarm.