Sweden

   
 

Executive Summary

 
The years 2022 and 2023 have been a period of dynamic change for Sweden, with sharp political shifts occurring against the backdrop of the armed conflict in Europe between Russia and Ukraine. This war severely upset the balance of the Nordic-Baltic region, leading to far-reaching consequences. As a direct result of the conflict, Sweden, seemingly overnight, overturned a policy of neutrality that had been in place since the end of the Napoleonic Wars (1814) and sought NATO membership, effective March 2024. The process was fraught with realpolitik, with leaders from Türkiye and Hungary trying to elicit concessions from Sweden to avoid a veto. Both the Social Democratic bloc and the center-right minority government were in agreement on the NATO membership issue.
 
The 2022 elections resulted in the Social Democratic bloc losing power. The radical right-wing populist Sweden Democrats came in second with 73 seats, compared to the Social Democrats’ 107 and the Moderate Party’s 68. After the election, the cordon sanitaire against the Sweden Democrats finally fell, and the parties in the right-wing camp entered into negotiations with the Sweden Democrats. These negotiations to form a new government took 37 days. Although the Sweden Democrats do not hold cabinet positions, their influence became evident in the Tidöavtalet – the compromise that led to the government formation – which includes punitive measures against crime that also undermine civil rights. As the largest party in the right-wing bloc, the Sweden Democrats also exerted significant influence in the day-to-day process of governing as a supporting party of a minority government consisting of Moderates, Liberals, and Christian Democrats. Researchers are focusing on the conduct of elections within the broader climate of misinformation and disinformation, while political parties in general continue to lose membership.
 
Freedom of speech and information transparency remain robust. The public debate surrounding the Quran burnings during the NATO membership negotiations centered on the tensions between free speech and hate speech. In the end, these burnings were ruled as free speech, though a constitutional amendment limits the freedom to associate if this association is connected to, for example, terrorist activities.
 
The post-COVID period saw inflation spike to 10%, then fall to about 3.5% in 2022. The economy is forecast to recover, and the trend of an inclusive labor market with increased employment rates for foreign-born people persists, even as the de facto segregation of certain areas and increased violence from organized crime also persists.
 
Sweden remains a forerunner in environmental protection, with an articulated goal of becoming carbon neutral by 2045 and a detailed, albeit non-binding, plan to achieve this target. However, recent actions by the current center-right minority government, such as lowering fuel taxes, suggest a prioritization of economic benefits over environmental protection. Additionally, the government is working to expand nuclear energy for electricity generation.
 
This period also marked the proposition to radically reorganize the research funding structure in the country. A relevant commission of inquiry suggested abolishing the existing four funding agencies, which focused broadly on innovation, sustainability, working life, and high-quality research. Additionally, it recommended discontinuing the research budget for the Swedish Energy Agency. Instead, it proposed forming three large funding agencies. This change is framed as an effort to modernize the research funding structure. Such framing – “getting with the times” – was also used when the government announced large cuts to Swedish Radio.
 
Recent developments have led to reactive shifts in public policy and reinforced the stronghold of a radical right-wing populist party, even in Sweden. These changes underscore a trend: Swedish democracy is becoming less unique and more similar to other European countries.
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