Sweden unveils new relief measures amid Mideast uncertainty
The Swedish government on Monday announced additional relief measures to help households cope with rising electricity and fuel costs amid uncertainty in the Middle East, reported Xinhua.
Under the package, the government proposed tax measures to lower petrol price by 1 krona (about 11 U.S. cents) per liter through September, and diesel by 0.40 krona (about 4 U.S. cents) per liter. Owners of passenger cars and small houses would also receive a lump-sum payment of 1,500 kronor (about 140 U.S. dollars) in July as compensation for electricity and fuel costs.
The new measures follow the government's decision to cut value-added tax on food to 6 percent from April 1 through the end of the year.
Speaking at a press conference, Finance Minister Elisabeth Svantesson said Sweden was well-positioned to cope with a worsening situation, citing the country's low level of public debt. "Sweden is also less dependent on oil and gas than many other countries," she added.
Svantesson also noted that Sweden has applied to the European Commission for permission to levy fuel taxes below the EU minimum level.
She acknowledged, however, that Sweden remains in a period of weak economic activity.
According to the government's updated economic forecast, Sweden's gross domestic product (GDP) is expected to grow by 2.8 percent in 2026 and 2.5 percent in 2027, while unemployment is projected at 8.4 percent in 2026 and 7.8 percent in 2027.
Commenting on uncertainty surrounding the recent U.S.-Iran tensions, Svantesson said U.S. policy had been difficult to predict, adding that she wished it could be as regular and foreseeable as Sweden's annual moose migration.
Since the United States and Israel launched attacks on Iran at the end of February, disruption to shipping through the Strait of Hormuz has pushed up global oil prices, adding to pressure on energy markets and raising concerns over fuel and electricity costs in import-dependent economies.
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