The Löfven II cabinet () was the government of Sweden from 21 January 2019 to 9 July 2021. It was a coalition minority government between the Social Democrats and the Green Party, with confidence and supply from the Centre Party and the Liberals, led by Prime Minister Stefan Löfven of the Social Democrats. The cabinet was installed following the 2018 general election, after a Swedish record-long government formation.
The cabinet was installed after a formal government meeting with King Carl XVI Gustaf on 21 January 2019. Stefan Löfven had previously announced his cabinet ministers at a parliament session. In a vote of no-confidence held on 21 June 2021, Löfven was voted out of office. The cabinet continued as a caretaker government until a new cabinet was appointed. On 9 July, the Löfven III cabinet was installed.
With only a total of 32.7 percent of the popular votes in 2018 and 116 out of 349 seats (33%) in the Riksdag (Swedish parliament), the "red-green" coalition began as one of the smallest minority governments in Swedish history and relied on support from other parties in the Riksdag.
Ministers List of current government ministers – "Sweden's newest government" (2019)
Policy
January Agreement
The cabinet was one of the weakest governments in Swedish history. Thus, it relied on support from other parties in the Riksdag. Holding only 33% of seats in parliament, this red-green government's retention of power was the result of a joint agreement between the Social Democrats, the Green Party, the Centre Party and the Liberals. The 16-page document known as the (), as it was signed in January 2019, dictated government policy during this time.
The agreement included the following main points:
The Centre Party and Liberals agreed to abstain from voting against Stefan Löfven's re-election. The Left Party were to not receive any influence over Swedish politics for the following years. Passing a test in Swedish and in the basics of civics were to be made mandatory to acquire Swedish citizenship. The abolition of the tax by 2020. This tax, which was adopted in 1995 by the Social Democrats, was a surtax of five additional percentage points on anyone's annual income that exceeds . The reform of the Employment Protection Act (LAS) by 2021. The amendments included additional exceptions to the rules of seniority regarding redundancy terminations of employees. The government was to refrain from proposing legislation which would limit or prevent the private sector from generating profits from their work in the welfare system. Taxes on environmentally unfriendly goods and services were to be increased while taxes on salaries were to be lowered. This is known as () in Swedish politics and amounted to (circa ). The lowering of taxes for retirees by 2020 and an increase in general pensions by 2021. The introduction of the "family week". Working parents who have children between the ages of four and sixteen receive three days off each within the framework of parental insurance. These days are intended to be used when children cannot attend school due to school breaks, etc. Single parents receive six days. The expansion of the tax reduction on household services () to include an additional range of services. Lowered employers' state fees. A reformed Public Employment Service, having it compete with private employment services.
Additionally, the agreement included investments and policy changes across many areas:
Infrastructure Investments into the countryside, such as increased possibilities for distance education. The government was to ensure that no more government services locate their headquarters in the capital, Stockholm, during the government term. Improvements to digital infrastructure, with the goal being to guarantee that 95% of all households and businesses has access to a broadband speed of at least 100 Mbit/s by 2020. Investments in the railway and road infrastructure across the country amounting to () between 2018 and 2029. Tasking the Swedish Transport Administration with maintaining daily over-night trains to several European cities.
Environment The prohibition of the sale of new gasoline- and diesel-driven cars. The reintroduction of the aviation tax.
Social integration Making the punishment for honor-related violent crimes more severe. Allowing municipalities to limit state aid to those asylum seekers who manage to find their own housing in areas with socio-economic difficulties.
Housing
The liberalization of rent controls on newly constructed housing developments. The abolition of four separate taxes which are collectively known as the ('move tax').
Education Permitting academic grading from year 4 (age 10) of elementary school, instead of year 6, but making it voluntary for schools to grade students up until year 6. Prohibiting further religiously oriented privately owned schools from opening. Exploring the possibilities for a state-run education system.
Personal assistance The restoration of the right to receive a subsidy for assistance for care revolving around breathing and tube feeding, which was abolished in the Moderate and Christian Democrat budget.
Security 10,000 more police employees by 2024. The prohibition of weapon export deals with non-democratic countries which are known to participate militarily in the Yemeni conflict until the conflict ends.
The government proposed to reduce employers’ social security contributions to increase young people's employment in 2019. The Swedish fossil-free initiatives proposals amounted to , including investments in biogas and home charging of , wetland protection at 200 million, and solar cell subsidies of 300 million. Aviation tax of a year is to be collected.
2020 state budget Minister for Finance Magdalena Andersson delivered the 2020 budget proposal to the Riksdag on 18 September 2019. The reforms of the budget were in accordance with the January agreement and were estimated to cost the state 30 billion crowns.
Arguably the most significant reform in the budget proposal was the abolished tax. The was a surtax which was adopted in 1995 by the Social Democratic Carlsson Cabinet. It taxed five additional percentage points on anyone's annual income that exceeds 703,000 crowns. The reform had been pushed by the Liberals for a long time.
The largest reform in terms of increasing revenue in the budget was the three-crown tax on plastic bags which was expected to generate 2 billion crowns in tax revenue.
Other tax-political reforms included the lowering of taxes for the elderly with a pension of at least per month, as well as a tax break for people living in certain rural municipalities. The eligible municipalities cover most of Norrland and Dalarna and parts of Värmland and Dalsland.
The regions and municipalities of Sweden received a general contribution of . The municipalities received and the regions received . The funds were to be distributed equally in proportion to each subdivision's population. An additional 410 million crowns were allocated towards combatting and preventing segregation on the local and regional levels, with a reserve fund of 85 million made available for the same purpose.
According to Dagens Nyheter, 110 of Sweden's municipalities would be operating at a deficit during the second half of 2019.
The government claimed that the reforms would increase the gap between the poor and the rich, as well as between men and women.
Measures against gang crime In September 2019, talks were held between the government parties and the centre-right Moderates, Christian Democrats, Centre Party and Liberals regarding an agreement concerning measures for combating gang violence and organized crime. Negotiations broke down on 21 September 2019, with three of the centre-right parties (M, L and KD) leaving the talks. The Moderate spokesman for justice affairs stated that "We can agree to a lot of the crime prevention work [proposals]. Regarding the strengthening of justice policy, I can affirm that we are still very far from each other". The Moderates demanded additional police officers, the doubling of prison time for gang-related offences, the ability to turn state's evidence and the abolition of mandatory lenient sentencing for young offenders. The Christian Democrats, Centre Party and Liberals pushed for the ability of witnesses to testify on the condition of anonymity.
On the same day, following the breakdown of the negotiations, the government announced their own package of measures to combat gang crime. The package consisted of 34 proposals which included giving the police the ability to read and listen to encrypted communications, transferring certain police responsibilities to community service officers and increasing the mandatory minimum sentences for several crimes such as weapons and explosives offences, recruiting youth for criminal activities and for conveying narcotics to others. Moderate leader Ulf Kristersson announced on 22 September that they would support the government package, provided that the proposals lead to concrete reforms. The Christian Democrats stated that they would support certain parts of the package.
Following the shooting of a 15-year-old boy in Malmö on the night of 9 November, the opposition parties called for a vote of no-confidence against Minister of Justice Morgan Johansson, deeming him at least partly responsible for the recent wave of violent crime. Two days later, on 11 November, the police launched with the mission of curbing gang violence, with police officials claiming that a "difference would be noticed" within roughly six months. The vote of no-confidence against the Minister of Justice was held on 13 November and failed, accruing only 131 of the 175 'yes' votes required.
Response to Covid-19 outbreak
On 24 February, the government announced that they would be spending (roughly ) towards the World Health Organization's efforts in containing the 2019–20 coronavirus outbreak. Public gatherings of more than 500 people were banned on 11 March. A set of emergency reforms were announced on 16 March to curb the economic effects of the coronavirus. The state will provide all employees with paid sickness leave and will also give companies more time to pay taxes. The reform package has a capped budget of . On 17 March, schools providing secondary and higher education (gymnasium and universities) were advised to close and to teach classes remotely. In conjunction with the European Union announcing a 30-day travel ban for people entering the Union, the government instituted a ban on non-essential travel from non-EU nations to Sweden in the evening of 17 March.
Employment Protection Act (LAS) talks Negotiations between the Swedish Trade Union Confederation and the Confederation of Swedish Enterprise regarding the reform of the Employment Protection Act (, LAS) failed on 1 October 2020. As the reform of LAS was stipulated to occur by no later than 2022, unless negotiations were resumed, the government was expected to step in and execute the reforms put forward in their 2019 inquiry. The Left Party was firmly against the suggested reforms and vowed to launch a vote of no-confidence against the government if they were to go through with the reforms. The right-wing opposition parties, wishing to oust the government, indicated that they would support the Left during such a vote, which would be enough for a majority. Trade union and enterprise leaders resumed talks on 14 October and presented a batch of proposed reforms to the government in December 2020.
Controversies
Begler Affair