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Sweden's National Reform Programme 2020

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Sweden's National Reform Programme 2020 Sweden’s National Reform Programme 2020 Europe 2020 – the EU’s strategy for smart, sustainable and inclusive growth Contents 1. Introduction ..................................................................................... 4 1.1 Reform policy .................................................................................................... 6 2. Macroeconomic situation and scenario ......................................... 11 2.1 Economic growth ............................................................................................ 11 2.2 Labour market ................................................................................................. 12 2.3 Inflation ............................................................................................................ 12 2.4 General government finances ........................................................................ 12 2.5 Income dispersion ........................................................................................... 13 3. Initiatives and measures in response to economic challenges identified in the European Semester in 2019 .................................... 14 3.1 Household debt ............................................................................................... 16 The Government’s view of the recommendation........................................ 17 Initiatives and measures ................................................................................... 18 3.2 Housing market ............................................................................................... 22 The Government’s view of the recommendation........................................ 22 Initiatives and measures ................................................................................... 23 Inquiries and commissions .............................................................................. 26 3.3 Investments ...................................................................................................... 31 Government's view of the Commission’s assessment ................................ 31 3.4 Anti-money laundering ................................................................................... 34 The Government’s view of the recommendation........................................ 34 Initiatives and measures ................................................................................... 34 4. Progress towards the targets of the Europe 2020 strategy ........... 36 4.1 Employment target ......................................................................................... 36 Current status .................................................................................................... 36 Initiatives and measures ................................................................................... 38 4.2 Education target .............................................................................................. 40 Current status .................................................................................................... 40 Initiatives and measures ................................................................................... 43 4.3 Target for increased social inclusion ............................................................ 44 Current status .................................................................................................... 45 Initiatives and measures ................................................................................... 45 Research and development target ....................................................................... 48 Current status .................................................................................................... 48 Initiatives and measures ................................................................................... 49 4.4 Climate and energy targets ............................................................................. 50 Current status .................................................................................................... 50 Initiatives and measures ................................................................................... 51 5. European structural and investment funds 2014–2020 ................. 53 2 (112) Partnership agreement .......................................................................................... 53 Investment for growth and employment 2014–2020 ....................................... 53 6. Institutional issues and participation of relevant parties ........ 58 6.1 Institutional issues ........................................................................................... 58 6.2 Consultations with the social partners ......................................................... 58 6.3 Local and regional support ............................................................................ 59 6.4 Consultation with interest organisations and civil society organisations. 60 Appendix with external contributions to Sweden’s National Reform Programme 2020 …………………………………………………………61 Appendix to the UN Global Sustainable Development Goals referred to in Chapter 4…………………………………………………………...109 3 (112) 1. Introduction The Europe 2020 strategy has been the EU’s common strategy for growth and jobs since June 2010. It is based on the integrated economic and employment policy guidelines laid down by treaty.1 The aim of the strategy is to improve the conditions for full employment and inclusive sustainable growth up to 2020. The strategy builds on three priorities that are intended to reinforce one another: - Smart growth: developing an economy based on knowledge and innovation. - Sustainable growth: promoting a more resource-efficient, greener and more competitive economy. - Inclusive growth: fostering a high-employment economy delivering economic, social and territorial cohesion. In April each year Member States have to present a national reform programme to the Commission, describing their implementation of the Europe 2020 strategy in national policies. These programmes report on results achieved over the past year, as well as action planned. The programmes also have to reflect the overarching priorities for the European Semester, which is the framework for economic policy coordination in the EU. Sweden’s National Reform Programme for 2020 is mainly based on the measures and reform ambitions proposed by the Government in the Budget Bill for 2020, the Spring Fiscal Policy Bill for 2020 and the Spring Amending Budget. This year the Spring Fiscal Policy Bill and the Spring Amending Budget are characterised by the management of the consequences of the coronavirus. The initiatives and measures referred to in chapter 3 are those that the Government has taken and intends to take in areas assessed by the Commission and the Council within the European Semester in 2019, in particular, as being the main economic challenges for the Swedish economy. It is important to note that these challenges were formulated by the Commission and the Council before the COVID-19 crisis. The Reform Programme also reflects the political priorities in the Commission's Annual Sustainable Growth Strategy: 1 Council recommendation (EU) 2015/1184 of 14 July 2015 on broad guidelines for the economic policies of the Member States and of the European Union. Council Decision (EU) 2019/1181 of July 2019 on guidelines for the employment policies of the Member States. 4 (112) - Delivering high-quality investment focusing particularly on investment gaps in research and innovation, education and infrastructure: - Focusing on reforms that increase productivity growth, inclusiveness and institutional quality; - Ensuring macro-financial stability and sound public finances. As of this year, Member States have to report in their national reform programmes how they are achieving the UN’s Sustainable Development Goals (SDGs). This is done in the report on the achievement of the targets of the Europe 2020 strategy in chapter 4. This chapter states which Europe 2020 targets contribute to the achievement of relevant Sustainable Development Goals. There is an overview of the relevant Sustainable Development Goals in an appendix to this year’s programme. Another appendix to this year’s programme presents material received from social partners, regional and local actors and civil society organisations. The Government has not taken a position on this material. 5 (112) 1.1 Reform policy The whole of Sweden is now coming together in the fight against the novel coronavirus. The pandemic is a serious threat to human life and health, and serious economic consequences will follow in its wake. All necessary measures and resources must be used to limit the spread of the infection. The impact on companies, jobs and the economy must be pushed back. The virus outbreak and its consequences must be addressed through cooperation and shared responsibility, both in and between countries. At present there is great uncertainty about how quickly the virus is spreading, and on what scale, as well as about the seriousness of its impact on the economy. The situation can change very quickly. Thanks to strong public finances, Sweden is well placed to take the measures required. In spring 2020 the Government has presented a large number of measures, both in five extra Amending Budgets and in Government Bill ‘Spring Amending Budget for 2020’. Several of the measures have already entered into forced thanks to broad consensus in the Riksdag (Swedish parliament) about the seriousness of
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