Karin Elisabeth Svantesson (née Lundin; born 26 October 1967) is a Swedish economist and politician of the Moderate Party. She has served as Minister for Finance in the Kristersson cabinet since October 2022 and as first deputy leader of the Moderate Party since 2019.
Svantesson has been a member of the Riksdag for Örebro County since 2006. She served as chair of the Committee on the Labour Market from 2012 to 2013 and as Minister for Employment in the Reinfeldt cabinet from 2013 to 2014. During the Moderate Party's period in opposition, she served as its employment-policy spokesperson and, from 2017 to 2022, as its economic-policy spokesperson and deputy chair of the Committee on Finance.
As finance minister, Svantesson initially pursued a comparatively restrictive fiscal policy during the period of high inflation, before shifting towards a more expansionary policy as inflation declined. Her tenure has also included revisions to Sweden's fiscal policy framework, increased expenditure on military and civil defence, and extensive tax and budget measures intended to strengthen household finances and economic growth.
Political career Member of the Riksdag (2006–2013) Svantesson was elected to the Riksdag in the 2006 Swedish general election, representing Örebro County. She took office on 2 October 2006.
Following her election, she became a member of the Committee on the Labour Market and a deputy member of the Committee on Industry and Trade. In October 2009, she also became a deputy member of the Committee on Finance, and the following month she joined the parliamentary council of the Swedish National Audit Office.
Svantesson was re-elected in the 2010 Swedish general election. She served as a member of the Committee on Finance from October 2010 until June 2012, when she became chair of the Committee on the Labour Market.
Minister for Employment (2013–2014) On 17 September 2013, Prime Minister Fredrik Reinfeldt appointed Svantesson Minister for Employment, succeeding Hillevi Engström. She was on leave from the Riksdag while serving in the government and remained minister until the Reinfeldt cabinet left office on 3 October 2014 following the 2014 Swedish general election.
Return to the Riksdag (2014–2022) Svantesson resumed her duties as a member of the Riksdag on 4 October 2014. She became deputy chair of the Committee on Social Insurance and briefly served as a member of the Committee on the Labour Market before becoming its deputy chair on 16 December 2014.
On 11 December 2014, she was appointed the Moderate Party's spokesperson for employment policy.
After Ulf Kristersson became party leader in October 2017, Svantesson was appointed the party's economic-policy spokesperson. She also became deputy chair of the Committee on Finance, positions she held until entering government in 2022.
Deputy leader of the Moderate Party (2015–present) On 17 December 2014, Svantesson was nominated as second deputy leader of the Moderate Party. She was elected to the position at an extraordinary party conference on 10 January 2015.
At the party conference in October 2019, she was elected first deputy leader, succeeding Peter Danielsson.
Minister for Finance (2022–present)
Svantesson was appointed Minister for Finance in the Kristersson cabinet on 18 October 2022, succeeding Mikael Damberg. As finance minister, she is responsible for the government's economic policy, fiscal policy, taxation, financial markets and budget. The government's budgets have been negotiated by the three governing parties and the Sweden Democrats under the Tidö Agreement.
Inflation and the first budgets Svantesson presented the government's first budget, for 2023, in November 2022. It was introduced during a period of high inflation, rising interest rates, elevated electricity prices and weakening economic growth following the Russian invasion of Ukraine. The budget contained reforms intended to support households and businesses, strengthen welfare services and increase expenditure on defence, the police and the judicial system. It also included measures concerning fossil-free electricity production and the energy sector.
During 2023 and the first half of 2024, Svantesson pursued a comparatively restrictive fiscal policy. She argued that large general stimulus measures could prolong inflation and require the Riksbank to maintain higher interest rates. The government instead concentrated much of its additional expenditure on targeted support, municipalities and regions, defence and law enforcement.
The budget for 2024 contained reforms estimated at SEK 39 billion. Its stated priorities included combating inflation and mitigating its effects, supporting the welfare system and increasing funding for defence and the judicial system.
The restrained approach was intended to prevent fiscal policy from counteracting the Riksbank's monetary policy. However, the government was also criticised for not providing greater support to municipalities, regions and households as the Swedish economy weakened. The National Institute of Economic Research reported in September 2023 that Sweden was in an economic downturn and forecast that unemployment would rise to 8.3 per cent during 2024.
Taxation and household finances Under Svantesson, the government reduced taxes on earned income, pensions, petrol and diesel. It also expanded the earned income tax credit and introduced or extended several tax deductions. The government argued that these measures would strengthen incentives to work, restore household purchasing power and reduce transport costs for households and businesses.
High inflation and rising mortgage rates nevertheless caused a substantial decline in households' purchasing power during the first part of her tenure. In September 2023, the National Institute of Economic Research concluded that high inflation and rising interest rates were eroding household purchasing power and contributing to declining consumption and residential investment.
As inflation and interest rates subsequently declined, real household incomes began to recover. Household consumption and housing construction nevertheless remained weak for an extended period, contributing to the prolonged economic downturn.
Fuel policy and climate criticism The government reduced taxes on petrol and diesel and sharply lowered Sweden's statutory biofuel reduction obligation from January 2024. It argued that the changes were necessary to lower fuel prices and ease financial pressure on households, agriculture and transport-dependent businesses.
The measures became one of the most controversial elements of the government's economic policy. Opposition parties and environmental organisations argued that they would increase greenhouse gas emissions and make Sweden's national and European climate commitments more difficult to achieve.
The independent Swedish Climate Policy Council concluded in its 2024 report that the government's action plan did not explain how Sweden would meet its obligations under the European Union's Effort Sharing Regulation. The council also warned that lowering the reduction obligation and fuel taxes would increase transport emissions and could require more abrupt and expensive emission reductions later in the decade.
In its 2025 report, the council stated that preliminary statistics showed a substantial increase in transport emissions during 2024, which it linked principally to the reduced biofuel obligation and lower fuel taxes.
Shift towards economic recovery As inflation declined during 2024, the government shifted the emphasis of its economic policy from inflation restraint towards supporting economic recovery, employment and household purchasing power.
The budget for 2025 contained reforms totalling approximately SEK 60 billion, excluding military assistance to Ukraine. Its principal measures included an expanded earned income tax credit, reduced taxation of pensions and savings, and increased funding for defence, law enforcement, infrastructure, research and welfare services.
Svantesson described the change as a transition from fighting inflation to strengthening growth, employment and Sweden's long-term competitiveness. The government also argued that lower taxation of labour would increase household consumption and make employment more financially rewarding.
The economic recovery during 2025 was weaker and less consistent than the government had initially expected. In March 2025, the National Institute of Economic Research described the recovery as fragile and forecast that unemployment would remain significantly elevated through 2026. Weak household consumption, low residential construction and international uncertainty continued to weigh on economic activity.
The 2025 spring budget contained further measures intended to support economic activity and strengthen national security. It was presented amid uncertainty surrounding increased United States tariffs and turbulence in international financial markets.
Budget for 2026
The budget for 2026 marked a more expansionary phase of Svantesson's tenure. It contained reforms totalling almost SEK 80 billion and included further reductions in income tax, lower childcare fees, reduced taxation of sickness and activity compensation, lower electricity taxation and protection for households against unusually high electricity and gas prices.
The budget also contained increased expenditure on welfare, education, infrastructure, civil preparedness, military defence and support for Ukraine. The government argued that Sweden's comparatively low public debt provided room for a temporary fiscal expansion without endangering long-term sustainability.
In April 2026, Svantesson presented a spring budget containing measures worth SEK 7.7 billion. The package included temporarily reduced fuel taxes and subsidies linked to electricity and gas prices. It was introduced in response to heightened international uncertainty and renewed increases in global energy prices.
Economic performance Inflation fell substantially during Svantesson's tenure. Annual inflation according to the CPIF, the measure used by the Riksbank for its inflation target, declined from 10.2 per cent in December 2022 to 1.3 per cent in June 2026.
The government argued that its restrictive fiscal policy during 2023 and early 2024 helped avoid adding further inflationary pressure. The decline in inflation was also influenced by the Riksbank's interest-rate increases, falling international energy and commodity prices and the normalisation of global supply chains. It therefore cannot be attributed solely to government fiscal policy.
Sweden retained comparatively strong public finances and a relatively low level of government debt. This provided the government with greater fiscal room to reduce taxes, increase defence expenditure and stimulate economic activity after inflation had declined. The National Institute of Economic Research concluded in its 2025 fiscal sustainability assessment that Sweden's public finances were sustainable in the long term, although future demographic pressures would require continued prioritisation.
At the same time, Sweden experienced a prolonged economic downturn. Household consumption, residential construction and business investment were adversely affected by high inflation and interest rates. The recovery began during 2025 but remained uneven and was slowed by increased geopolitical and international trade uncertainty.
The labour market was a particular weakness. Unemployment remained elevated and the recovery in employment lagged behind the recovery in output. In June 2026, the National Institute of Economic Research forecast that economic growth would strengthen during the second half of 2026 but that unemployment would remain somewhat elevated at the end of 2027.