Financial Crisis

Economic Backlash for Municipalities

Sweden’s municipalities and county councils will face an economic backlash this year and the next. That’s according to an outlook calculated by the Swedish Association of Local Authorities and Regions which was presented in Stockholm on Wednesday. Due to the economic downturn municipalities and county councils expect their budgets to decrease this year by $US 380 million.

The head economist of the association Stefan Ackeby therefore expects that state authorities and public-run organizations will have to cut jobs and raise taxes in order to balance the deficit. Ackeby also points out that the impact of the economic downturn will hit municipalities differently – depending on the amount of stocks they have. (ah)