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Ulla Andersson, economic spokesperson of the Left Party. Photo: Janerik Henriksson / Scanpix
Left Party shadow spring budget

Bank tax and 120,000 new jobs

The Left Party, the smallest of the red-green opposition parties, also presented its alternative spring budget on Wednesday. The party promises to create 120,000 new jobs until 2015, through investments in railways, housing and public transport.

The party wants to scrap the current target of 1 percent surplus in the public finances, as they believe that it is sufficient to have a budget in balance over time.

They are also prepared to accept an inflation of 3 per cent instead of the current 2 per cent target.

Like the Social Democrats, the Left Party wants a target for the employment rate in society, but they differ from the bigger opposition party in that they want to prioritise the employment target ahead of targets on inflation and a surplus in the public finances.

"We do not borrow more money than the Government, but we pay off slightly less on the debt," the Left Party's economic spokesperson Ulla Andersson told the news agency TT.

The proposed investments would be financed by higher taxes on high incomes and expensive houses, as well as by increasing the sales tax, the VAT, for restaurants, which the Government halved in the beginning of the year.

The party would also like to see higher taxes on the banking sector. Next year, the Left Party proposes a one off tax is placed on the four biggest banks next year, in order to create jobs and education places for young people. Details of a longer-term tax on the banking sector will be included in the party's autumn budget proposal.

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