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Home >> World
UPDATED: 10:33, October 07, 2006
Government plan of Swedish new PM focus on tax cuts, employment
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Swedish new Prime Minister Fredrik Reinfeldt pledged on Friday tax cuts, more job opportunities and a trimming of the welfare state.

Addressing the parliament to present his government plan for the next four years, Reinfeldt said "More people who want to and can work will get the chance to support themselves through their own work and by beginning and running companies."

He also said the government will stick to a plan of a tax cut of 5.1 billion U.S. dollars in 2007, followed by a further 1 billion dollars reduction in 2008.

During the speech, Reinfeldt announced his cabinet ministers, with former Swedish premier Carl Bildt serving as foreign minister.

Bildt, a U.N. special envoy to the Balkans between 1999 and 2001, led a coalition government in Sweden in the early 1990s. He co-chaired the Dayton peace talks and served as the international envoy to postwar Bosnia.

Reinfeldt, 41, is the youngest Swedish prime minister since 1926. The four-party alliance, led by him, won a victory in the Sept. 17 election.

In the new government, 10 of the 21 new ministers are women, and nine ministers are moderates.

Reinfeldt, struck a conciliatory tone on Friday morning when he presented his plans to the 349-member parliament -- Riksdag, promising to listen to "everyone in Sweden."

He said the new administration would be an open government that listens to all citizens, and which will seek good partnership with everyone who wants to build a better Sweden.

Reinfeldt also promised a major income tax reform, but emphasized that he would not risk the health of the state finances.

"Every reform will be tested against what the economy can manage, and against the aim of full employment," he said.

Under his plan, it will be easier and cheaper for businesses to employ people and the tax on domestic services such as cleaning and gardening will be cut as well.

Wealth tax will be halved as a step towards abolishing it, and employers' liability to pay their staff sick pay will be replaced by a state credit guarantee system.

State property tax will be abolished, something Reinfeldt promised would be financed in "a responsible manner." Unemployment insurance will be compulsory for all workers, and the amount that people pay in premiums will increase.

The new premier said that his government will invite all parliamentary parties to talks on a long-term agreement on Swedish energy policy.

The government's ambition is to increase the number of police to 20,000, Reinfeldt said. All crimes will be investigated, regardless of the age of the criminal. There will be tougher penalties for assault, rape, robbery, and crimes against women.

Reinfeldt added that the police should be allowed access to materials acquired from bugging (telephone lines, etc), but great importance should also be attached to personal integrity.

Source: Xinhua


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