The Swedish Fiscal Policy Council, led by former central bank chief Lars Heikensten, has issued a stern critique of the Swedish government and Finance Minister Elisabeth Svantesson, specifically targeting their climate and labor market policies.

The government is accused of lacking a cohesive climate strategy and the economic incentives necessary for societal transformation.

Additionally, proposals for job tax deductions and the elimination of additional child allowances have been criticized, as there is no clear evidence these measures will lead to increased employment.

The council concludes that while financial resources are available, the government is missing the political will to implement necessary actions.