This document is a summary of news from Swedish newspapers on October 19, 2016. It discusses several topics: 1) The Swedish government will vote in favor of a UN resolution seeking to ban nuclear weapons, though opposition parties have differing views on the issue. 2) Opposition parties accuse Prime Minister Stefan Löfven of weak leadership, citing his response to a visit by US Vice President Biden regarding a new Russian gas pipeline. 3) The Centre Party proposes stricter rules for qualifying for social benefits in Sweden, which is supported by other opposition parties.

1. Swedish Press Review
Wednesday 19 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.
Sweden to vote for nuclear weapons ban
The Swedish government is backing up a UN
resolution that seeks to ban nuclear weapons,
according to Swedish foreign minister Margot
Wallström.
“We will certainly vote for it, she says. “This action
is highly significant considering that there are still
some 16,000 nuclear arms around the world. It
would be remarkable otherwise if Sweden does not
back up such a position that aims to start the process
for reduction of nuclear weapons.”
The Swedish opposition parties are taking a
different stance on the issue. The Liberals argue there
is a need for a nuclear umbrella, while the Moderates
caution that a vote for nuclear arms ban could
jeopardize the country’s relations with NATO.
There is currently no agreement in place that
prohibits nuclear weapons in the same manner that
chemical weapons are banned. However, there is
Treaty on the Non-Proliferation of Nuclear Weapons,
commonly known as the NPT (Non-Proliferation
Treaty), whose objective is to stop the spread of
nuclear arms and weapons technology and promote
cooperation in the peaceful use of nuclear energy.
(DN I: 15)
Löfven’s weak leadership
In a debate piece in Dagens Industri this morning
Moderate leader Anna Kinberg Batra, and Hans
Wallmark, the party’s defence policy spokesman,
accuse Stefan Löfven and his government of weak
leadership at a time when the security situation in the
world is deteriorating.
The prime minister’s incompetence was all too
visible during US vice president Joe Biden’s visit to
Sweden. The vice president expressed his concerns
over the plans for a new Russian gas pipeline, Nord
Stream 2. Europe’s dependence on Russia gas would
increase, and Sweden would give Russia access to
important ports such as Karlshamn and Slite during
the installation of the pipeline. Asked to comment
Sweden’s stance on the matter, Stefan Löfven was
speechless.
Other examples of the prime minister’s weak
leadership include the UN resolution on nuclear non-
proliferation and nuclear disarmament, which will be
discussed in the UN General Assembly this autumn.
The Swedish government has announced that it will
vote in favour of the resolution (see above), which
may well close the door to Swedish membership of
NATO and hamper the defence cooperation Sweden
has with individual NATO countries, and with the
USA in particular.
In addition to putting major Swedish interests at
stake, the government has failed to consult the
opposition about its plans, even though this is an
issue that has a far-reaching impact on Swedish
security policy, according to Batra and Wallmark.
They believe that the Riksdag needs to call in the
Defence Commission (Försvarsberedningen) so that a
holistic approach is taken to Sweden’s security
challenges, and that the next step should be a
roadmap towards NATO, not a closed door.
(DI: 4 & SvD I: 14)
Liberals oppose alliance budget for next election
Top municipal leaders from the Moderate Party are
pushing for the alliance to nail down a joint budget
in time for spring of election year 2018 (see SPR
18/10 Midday Ed.). However, the Liberals are
against such a move, nipping the idea in the bud.
Kjell Jansson, who heads the Moderate Party district
in Stockholm, is leading the proposal for an alliance
budget, saying that spring 2018 would be an ideal
time for it. “You enter the electoral race (with a
budget) and that will help make the new government
that’s shaping up less vulnerable,” he says. “That
would mean the new government could stay on since
it would only be less than six months before the next
regular election.”
Jansson thinks that a common election manifesto by
the alliance would suffice to convince voters that the
Moderates, Liberals and Center Party are unified with
a joint platform and budget ready for the next
national election.
However, Adam Alfredsson, press secretary for the
Liberals, does not agree with Jansson. “We’re not
ready for any major political crisis that may arise
three months prior to the regular election. What we’d
like to see is a joint alliance manifesto for the coming
four years.” (DN I: 14)
Stricter rules for granting of social benefits
The Centre Party is raising the bar for new arrivals
before they qualify for Swedish social benefits.
“The Swedish welfare state is a safety net where you
have basic rules to qualify for benefits,” says Emil
Källström of the Centre Party, adding that one
requirement would be employment.
The party is now suggesting stricter rules in the
Swedish welfare system for handling the integration
of incoming refugees, or new arrivals. On top of
their list are more stringent policies for guarantee
pension, parental benefits and survivor benefits.
“The biggest challenge ahead will be how to come
to grips with higher costs, and this rise in expenditure
is caused by the fact that we have so many systems
that are outdated,” says Källström, who is the party’s
economic spokesperson.
The proposal for stricter rules for granting benefits
resonates with the other opposition parties – the
Moderates and the Liberals. (DN I: 14) S. Ocampo

2. Swedish Press Review
Wednesday 19 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
Expert warns of corporate relocation
Under planned new international tax rules, or the so-
called base erosion and profit shifting (BEPS)
project, corporate taxes should be paid in the country
where the value is created. The OECD and G20
countries agreed on BEPS last year and now member
countries and the EU are working to implement the
rules into national legislation. On Tuesday the
Swedish government presented its bill on the
exchange of tax information.
Stafan Bohman, chair of the Confederation of
Swedish Enterprise’s tax delegation, now warns that
there is a real risk that Swedish corporations will
move parts of their business from Sweden to
countries with low corporate taxes.
Meanwhile, Magdalena Andersson, the finance
minister, says BEPS will generate more tax revenue
for Sweden, but refuses to say how she has arrived at
this conclusion.
Maria Malmer Stenergard, the Moderate
spokeswoman on tax policy, says no other party
shares Andersson’s belief, and accuses the
government of sloppiness. (DI: 6-7)
Tougher insider trading rules
Writing in SvD, Green MP Per Bolund, who is the
minister for financial markets, announces that the
government will today agree to the introduction of
tougher insider trading and market manipulation
rules.
In addition to prosecution, administrative sanctions
will be introduced, which will allow the Swedish
Financial Supervisory Authority (FSA) to levy fines
of up to 5 million euros on those found guilty of
insider trading. (SvD bus: 2)
FSA eyes ban on commissions
The FSA has changed tactics in its bid to punish
financial advisors who breach the rules, the reason
being that there are too many transgressions and
inadequate tools. Instead, the watchdog would like to
see a ban on commission payments to financial
advisors. (SvD bus: 6)
Interest rate floor
The government has proposed an interest rate floor
of 0% and 0.5% on state loans, including student
loans.
The interest on state loans has fallen in recent years;
in 2014 it was 1.62%; on 14 October this year it was
0.37%. Since July, however, the rate has fluctuated
considerably and been as low as minus 0.11%.
(DI: 14)
Property deal in pipeline
AB Volvo is poised to sell a number of properties
totalling 250,000 square metres in Torslanda, Säve
and Annedal in Gothenburg for some SKr 3 billion.
According to the website Fastighetsvärlden, the deal
will be announced shortly. The truck maker does not
wish to comment. (DI: 16)
ABG reports healthy growth in Sweden
Norwegian-Swedish investment bank ABG Sundal
Collier is showing strong growth in Sweden with
sales rising by almost 70% in the third quarter to 86
million Norwegian kronor. However, in Norway
sales fell by 27% to 95 million kronor. (DI: 9)
Branson’s liners a lift for Swedish energy
Swedish energy recovery company Climeon was in
the spotlight on Tuesday when entrepreneur Richard
Branson presented Virgin’s new cruise line company,
Virgin Voyages, in Miami.
Climeon’s technology will convert the heat from the
ship engines into electricity. Eighteen of the systems
are currently being assembled on three Virgin cruise
liners. (DI: 16)
Ex-minister goes to AIIB
Anders Borg, the former centre-right finance
minister, is to become an advisor to the Asian
Infrastructure Investment Bank, AIIB: an initiative of
China taken in 2013.
As the title suggests, the bank will loan money for
infrastructure projects, but AIIB can also be seen as
an expression of China’s geopolitical ambitions,
writes DI.
Anders Borg tells the business daily that he has no
Swedish mandate, but has instead been asked to act as
an advisor to the head of the bank. He will be joined
by OECD secretary general Angel Gurria and
economist Nicholas Stern, best known for his Stern
review on the economic impacts of climate change.
(DI: 14)
Stock market
Stockholm’s broad index, the OMXSPI, gained 1.3%
on Tuesday as medical tech firm Getinge announced
a distribution of its Patient & Post-Acute Care
division to shareholders. Shares in the company
rallied 6.3%. Hexpol also performed well, rallying
6.5% following a Carnegie upgrade. (DI: 30)
Exchange rates
Currency Buy Sell
Euro 1 euro 9.686 9.687
US dollar 1 dollar 8.814 8.818
Yen 100 yen 8.48 8.49
Sterling 1 pound 10.85 10.86
Yuan 1 yuan 75.99 76.61
(DI: 28, www.boc.cn) Vanessa Clare