Political Economy



The Swedish government could have given its fighter jets to Switzerland for nothing

Wednesday, 09 October 2013
As the Swedish government has been working extremely hard to sell its Gripen fighter jets to Switzerland, and as it look like the deal has gone through, it is emerging that the deal in Switzerland could be worse for the Swedish government than has previously thought, in financial terms. Saab gripenSaab Gipen jet fighter/Granscole
Swedish media reports hold that the combined price for the fighter jets has been reduced from around Skr1 billion to Skr800 million, begging the question if it makes commercial sense to sell the jet fighters to the country after all.

The Swiss government wants to buy 22 Gripen figh jets the E models for 3.1 billion Swiss francs, or about Skr 21.5 billion, the price tag that was mentioned earlier for the whole affair.

But according to news reports the jets will now be sold for about Skr17.7 billion meaning a discount per aircraft of approximately Skr200,000. It is not clears as to why the Swiss want to reduce the price this low. We speculate that it could be due to increased pressure from competitors such as the French or probably, it is that the Swiss authorities  want to show its people, some of whom are protesting against the business that it is cheaper than they might have thought.

Revenues from the business will not go to the Swedish treasury. The government would rather spend the money on further development of the JAS program, reports radio Sweden.

Although the chambers of the Swiss Parliament, after a lengthy process, voted to buy the 22 JAS Gripen planes, opponents of the aircraft business collecting at least  50,000 signatures needed for Switzerland to hold a referendum on the issue.

Should the referendum, expected to be held in May or early next fall generate enough Nays, the deal will be halted, radio Sweden reports.
by Scancomark.com Team

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