What happened
The Sweden Democrats have submitted a proposal in the Riksdag to extend the temporary tax cuts on petrol and diesel. Because a caretaker government is governing the country, the government cannot present such political proposals itself. The tax cuts mean approximately 4 kronor lower price per litre for petrol and just over 3 kronor per litre for diesel. The first cut expired on 1 October and the second expires on 1 December unless a new decision is made. The proposal is now tabled in the Riksdag's Committee on Finance, where neither the Moderate Party nor the Social Democrats have given any clear indication of support.
Our analysis
The Sweden Democrats' Henrik Vinge is pushing for the extension, but the proposal requires cross-bloc support since the Tidö parties no longer have their own majority. Keeping the price down by around 4 kronor per litre for petrol costs the state treasury nearly 1 billion kronor for the autumn and an additional approximately 1.5 billion kronor for the month of December. Reporting has revolved around the parties' tactical game, but omits the question of which parts of the shared welfare system will have to take a back seat when the state gives up 2.5 billion kronor in tax revenues. In addition, the plan requires the European Commission to grant an exemption allowing Sweden to fall below the union's minimum tax. The Committee on Finance will address the issue at a later date, and without a new decision, the tax will automatically be raised on 1 December.
Explained
A caretaker government governs the country temporarily after an election or a government crisis and has limited powers, meaning it may not introduce major new political reform proposals.
Source: Svenska Dagbladet