Political Economy



The Swedish government want to continue to sell more of its state owned companies

Friday, 27 September 2013

The Swedish government is bent on selling more of its company stocks, the Financial Markets Minister, Peter Norman made that clear.

The Conservatives in government right now are not certain that they will back in office after the next general election and it is clear that the socialist and the Greens who might come in will not sell state owns corporation.

Despite pressures and parliamentary blocks from the Social Democrats, the Green party and the far rights, Sweden Democrats, the conservatives have stressed that they will sell more state companies before the 2014 election, writes Dagens Industri.

In the weeks before it became clear that that the state will sell its shares in the bank Nordea, there was heated repudiation from the opposition. Despite that, Peter Norman has just made a new list of state companies that should get into the market.

Troubled Vattenfall for the market / Granscole
Telia Sonera for the market / Granscole

They are the likes of  TeliaSonera, SBAB, SAS and even parts of Vattenfall. Together, these sales could provide revenue for the state of up to Skr130 billion.

The additional companies that would be taken to the market will become clear only at the election in 2014.

"I expect that in the manifesto, a new list of companies, probably part of the company that are still standing there today is because we have not reached the finish line with them, and possibly some new ones too. I think that would be good, "said Peter Norman to the Swedish business daily, Dagens Industri.

However, as we said earlier above,  it is far from clear that the government will succeed. The Social Democrats and its allies as well as the far right Sweden Democrats have previously blocked the sale of TeliaSonera and SBAB.

The Swedish State owns some 52 companies, with a value estimated to be around Skr530 billion. The state has long struggled with finding a new ownership model for its state companies.

The old shareholder proposal, where control of state companies moved to the holding company or a shareholder authority was dropped altogether. The model is "definitely dead and buried," said Peter Norman to Dagens Industri.

Therefore, before the election coming up next year,  if the conservatives leave office  without fulfilling their conservative principles of small government and "hands off" companies management or more privatisation, they would have considered themselves as failed for 8 years in office.

by Scancomark.com Team

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