1. Swedish Press Review
Tuesday 18 October 2016 – Early Edition
Swedish Press Review, an English-language review of the Swedish
morning press for the business and diplomatic community.
Address: Artillerigatan 68 B, 115 30 Stockholm. Subscriptions, enquiries
etc. tel. 08 - 660 41 46 Fax 08 - 661 21 26. Responsible publisher under
Swedish law and Editor-in-Chief: Ian M Beck.
Löfven: Mosul could lead to extended controls
Stefan Löfven, the prime minister, has told the
Sydsvenskan newspaper that the offensive on
Mosul could lead to Sweden extending its border
controls.
The UN predicts that around one million people
may have to flee as the operation begins to retake
control of the Iraqi city from Islamic State.
Sweden’s Migration Agency (Migrationsverket)
does not expect an increase in the number of
asylum seekers from Iraq, believing that the
majority of those fleeing Mosul will stay in the
region.
Stefan Löfven is of a different opinion, saying
that there could actually be a huge flow of refugees
from Iraq: “We must be prepared for that. And, the
government has decided that we should not have
return to a situation similar to the one last autumn”
The PM also says that the government has not yet
decided whether the border controls on the
Öresund Bridge should continue or not. One
argument against a continuation of the checks is
that it has become problematic for commuters to
travel over the Bridge.
[http://www.svd.se/striderna-i-mosul-kan-leda-till-
fortsatt-granskontroll Accessed 2016-10-18 09.16]
No mass exodus
Last year a total of 20,857 Iraqis applied for
asylum in Sweden. The corresponding figure so
far, this year, is 2,167. Around half those who have
been processed received asylum but this figure
could be misleading since six of 10 asylum seekers
have withdrawn their applications – opting instead
to leave Sweden or go underground.
The Migration Agency is closely monitoring the
events in Mosul and in Iraq in general as it
prepares to review its position on Iraq come
November. Press officer Michelle Bornestad says
the recent attack on Mosul and its consequences
will be part of their overall assessment.
[http://www.svd.se/sverige-tror-inte-pa-fler-
flyktingar-svart-att-na-hit/om/kriget-mot-is
Accessed 2016-10-18 09.40 am]
Three million checked – 78 sought asylum
The government claims that the border checks are
vital to “tackle a serious threat to public order and
home security”. Yet few of the checks in southern
Sweden have led to anyone being deported or
seeking asylum, reports Swedish Radio’s Ekot
news programme.
In point of fact the police have carried out identity
checks on more than three million since August,
but has registered just 78 asylum seekers.
[http://www.svd.se/tre-miljoner-kollade-vid-
gransen--78-var-asylsokande/om/id-kontrollerna
Accessed 2016-10-18 09.36]
Legalizing weapons export to UAE “a joke”
Two Swedish left-wing politicians have strongly
criticized the potential sale of the GlobalEye radar
system to the United Arab Emirates (UAE),
according to Svenska Dagbladet.
Defence and security company Saab has received
the go-ahead from the Inspectorate of Strategic
Products to send a tender to the UAE for the supply
of advanced airborne early warning and control
(AEW&C) system GlobalEye (see SPR 18/10
Early Ed.).
The UAE is part of the Saudi-led coalition whose
air strikes are killing and injuring civilians in
Yemen.
Green Party MP Carl Schlyter likens the potential
deal to a weapons sale that “would increase the risk
for greater civilian casualties.”
Schlyter has been a vocal critic of Swedish
weapons exports and has several objections to a
possible Saab GlobalEye sale, one of which
concerns the radar system itself.
“This system helps identify moving objects at a
distance, finding targets on the ground. This
increases the risk for random attacks, hitting
objects that one isn’t sure are enemy targets, thus
increasing risks of civilian casualties,” he was
quoted as saying.
Another politician opposed to a potential deal with
the UAE is Hans Linde, Left Party spokesperson
on foreign affairs. Linde finds it “extremely
problematic” that Swedish is carrying out this type
of business with the UAE.
Linde points out that an estimated four million
Yemenites are in flight and this poses a moral
dilemma for Sweden which provides financial
support to refugees in Yemen. “On one hand we
make it more difficult for refugees to reach Sweden
and on the other hand we help create this mass
exodus through weapon exports,” Linde says,
adding that inconsistency on Sweden’s policy
could damage the country’s credibility.”
[http://www.svd.se/schlyter-var-lagstiftning-for-
vapenexport-blir-ett-skamt Accessed 2016-10-18
09.30 am]
Sonora Ocampo and Vanessa Clare

2. Swedish Press Review
Tuesday 18 October 2016 – Early Edition
Swedish Press Review, an English-language review of the Swedish
morning press for the business and diplomatic community.
Address: Artillerigatan 68 B, 115 30 Stockholm. Subscriptions, enquiries
etc. tel. 08 - 660 41 46 Fax 08 - 661 21 26. Responsible publisher under
Swedish law and Editor-in-Chief: Ian M Beck.
Business and the Economy
Sweden’s shortage of skills
Sweden has a greater imbalance on its labour market
than any other country, according to the 2016 Hays
Global Skills Index. The USA is in second place.
Sweden’s education system is poorly adapted to
companies’ needs, particularly in terms of front-edge
competence. There are not enough well educated people
for the hi-tech companies to recruit, according to Johan
Alsén, MD of Hays’ Swedish arm.
The imbalance has fuelled wage inflation in a number
of industries and there are now concerns that many
companies are approaching a pain threshold in terms of
costs. The consequence of this may well be that highly
qualified jobs, in R&D for example, will be transferred
to other parts of the world, where it is possible to find
the right skills at a lower cost. (DN I: 16-17)
Nordea mass recruits
Nordea is currently under the scrutiny of the Swedish
Financial Supervisory Authority. As the watchdog
looks into the bank’s adherence to money laundering
rules and its ties to the Panama Papers, Nordea is
increasing the number of employees in its compliance
division from 850 to 1,150 in a bid to avoid future fines.
(DI: 6-7)
Axfood invests in solar energy
Following the government’s U-turn on a much-
criticised solar tax, food giant Axfood says it will invest
in solar collectors that can produce 100,000 KWh per
year at its Jordbro warehouse. The intention is that
Axfood will eventually install solar collectors at as
many Hemköp and Willys stores as possible. (DI: 8)
Extending electricity certificate system
The Swedish Energy Agency (Energimyndigheten)
proposes extending the electricity certificate system
until 2045, and raising the quota of renewable energy as
of 2022.
The Agency says the system has led to the expansion
of renewable energy generation at a relatively low cost.
(SvD bus: 9)
Polaris sells company to US manufacturer
Swedish-Danish private equity firm Polaris is selling
Gothenburg-based Car-O-Liner to Nasdaq-listed Snap-
on. The US manufacturer of automotive diagnostic tools
will pay the equivalent of SKr 1.36 billion for the
company.
Car-O-Liner, which employs 385, develops hardware
and software for automotive measuring systems.
(DI: 12)
Lost revenue
In 51 instances this year forest owners have had to
shelve plans to harvest timber due to the presence of
endangered forest species, reports ATL, after studying
data from the Swedish Forest Agency (Skogsstyrelsen).
The Agency does not specify just how many acres of
forestland have been affected, but ATL suggests that
the shelving of the planned harvesting has cost forest
owners millions in lost revenue. (DI: 7)
Suspected cartel
Three stockists and sanitary ware manufacturer Ifö are
suspected of forming a cartel to raise the price of toilet
seats, baths and hand basins. If found guilty, the four
can expect substantial fines. (SvD bus: 9)
SCA to sell hunting lodge
Handelsbanken and Industrivärden are selling their
holding in the Hemvålen hunting lodge to SCA, which
was at the centre of a corruption scandal involving
extravagant corporate perks and private jets (ed.).
SCA will now put the lodge up for sale. (SvD bus: 6)
Yields and other financial data
Swedish 10-year sovereign bond yields remained
unchanged at 0.29% on Monday while the krona
weakened against both the euro and the US dollar (see
below).
Riksbank governor Stefan Ingves said in an interview
with the Financial Times that the introduction of
negative interest rates in Sweden had been
“undramatic”. He also reiterated his concerns over the
lack of political will in Sweden to tack the high level of
household debt.
The Swedish Trade Federation said on Monday that
retailers believe sales will increase in the next three
months. A majority of those surveyed said, however,
that they believe profits will fall (DI: 28, SvD bus: 9)
Stock market
Stockholm’s broad index, the OMXSPI, closed 0.6%
lower on Monday. Polymers group Hexpol shed 5.3%
after DNB downgraded the share, citing a theory that
lower commodity prices will not compensate the
weaknesses in the oil and gas industry. Fashion retailer
H&M closed 2% down after announcing a 1% increase
in September sales, which can be compared to 11% last
September. (DI: 30)
Exchange rates
Currency Buy Sell
Euro 1 euro 9.697 9.698
US dollar 1 dollar 8.81 8.82
Yen 100 yen 8.47 8.48
Sterling 1 pound 10.74 10.75
Yuan 1 yuan 76.29 76.91
(DI: 28, www.boc.cn)
Vanessa Clare

3. Swedish Press Review
Tuesday 18 October 2016 – Early Edition
Swedish Press Review, an English-language review of the Swedish
morning press for the business and diplomatic community.
Address: Artillerigatan 68 B, 115 30 Stockholm. Subscriptions, enquiries
etc. tel. 08 - 660 41 46 Fax 08 - 661 21 26. Responsible publisher under
Swedish law and Editor-in-Chief: Ian M Beck.