"We must have order and clarity in the classroom, parents should not have to worry that a school could go bankrupt," Stefan Löfven told Aftonbladet in a press briefing before his speech.
Löfven said that any school wishing to set up in an area must first have a cooperation agreement with the local council authority, otherwise there will be no school.
The Social Democrats also want to give the School Inspectorate increased powers. The Inspectorate should be able follow a schools' finances and have the right to stop distribution of dividends to shareholders if the economy is not considered viable. If money is still taken out then a license can be withdrawn.
The Inspectorate shall also have the power to suspend a license, similar to the powers enjoyed over banks by the Financial Inspectorate.
He also mentioned teachers, that the profession was "on its knees" due to the mountain of bureaucracy which stops teachers from doing their job.
In response on free schools , government Education Minister Jan Björklund tells news agency TT:
"We have a six party agreement about free schools. This still remains. Löfven's words are just old scraps."
In his speech, Löfven also covered foreign policy issues such as Syria and Egypt and the EU's role in foreign conflicts.
Domestically, the Social Democrat leader said that he would also like to scrap the premium pension system. "PPM has become a very expensive flop".