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Sweden unveils package to soften unemployment amid downturn

Business Materials 5 December 2008 16:05 (UTC +04:00)

The Swedish government Friday unveiled a 23- billion-kronor (2.8 billion dollars) three-year package aimed at reducing the effects of the economic downturn, reported dpa.

The focus of the package was on retraining people who have lost their job.

Prime Minister Fredrik Reinfeldt and the three other party leaders in his four-party coalition said the government would next year spend 8.3 billion kronor to retrain and support the unemployed. The plan also calls for increased spending on vocational training.

The plan also includes programs for developing infrastructure projects. Another item is a tax break for people who hire handymen to renovate their homes.

However, Reinfeldt said the government would maintain its fiscal discipline.

The central bank Thursday announced it would slash interest rates almost by half to 2.00 per cent - effective December 10.

Talks were also ongoing with the car industry about its future, Deputy Prime Minister Maud Olofsson, also minister for enterprise and energy, said.

US car giants Ford and General Motors (GM) said this week that they plan to shed their Swedish subsidiaries, putting thousands of Swedish jobs at stake. Ford owns Volvo while GM owns Saab.

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