Economic Crisis

LO Predictions Paint Bleak Picture

Economics experts from the Swedish Trade Union Confederation (LO) are predicting a drop in economic growth of 4.5 % and unemployment figures of 12 % by 2011 - that means another 330 000 people without work.

The prognosis is based on the finance policies presented by the government in the budget proposal.

If the predictions are right - the situation will be worse than after the recession in the 1990’s. According to the Swedish news agency TT, the confederation experts regard the government’s financial policies as ”short sighted”.

Instead, they call for a temporary subsidy of 1.8 billion US dollars a year to local authorities, extensive tax reductions on building and renovation, public investments to a value of 2.4 billion dollars, as well as a boost to adult education and re-training and a permanent increase of unemployment benefits.

The proposed package would cost almost 10 billion dollars for 2010 and 2011.