The world is changing, the government is shifting gears - reduced digitization funding in the spring budget

The 15 April, the Government's Spring Bill was submitted to Parliament. The pandemic continues to affect large parts of the world economy. At the end of 2020, GDP was falling as the spread of infection picked up again. Sweden is expected to be in a recession until 2023. The virus outbreak has also hit jobs hard. More than 8% of the workforce is now unemployed and long-term unemployment is rising in the wake of the pandemic.

The Spring Fiscal Policy Bill paints a picture where continued reform work is required to solve societal problems that Sweden had before the pandemic. The gap between urban and rural areas must be closed, not least in terms of jobs and entrepreneurship. The financial challenges are also mentioned, with Sweden's population expected to increase by almost 9% between 2020 and 2035, largely in the age groups where public spending on welfare services and transfers is greater than tax payments.

But despite the fact that the government has identified major challenges and the need for action, the measures that would enable sustainable growth and strong Swedish competitiveness to equip Sweden for the future are conspicuous by their absence! IT&Telecom companies have already called on the Swedish government to develop a plan for recovery. And we repeat it now again. A plan is needed that shows direction and priorities and addresses the challenges that can be solved with the help of digitization. Transitioning takes time and resources, but the cost of not transitioning will be significantly higher.

The EU Recovery Fund provides us with opportunities for ambitious investments in digitalization. But in the government's spring budget, the message is clear. No new initiatives will be presented, but the money will instead be used to finance measures already presented in the budget bill for 2021 and previous supplementary amending budgets. When other countries present offensive investments in digitization, Sweden tackles societal challenges with empty words. When the need for reform is greater than it has been for a long time, the government incomprehensibly chooses to reduce funding for digital solutions.

The national digitalization strategy, with its ambition for Sweden to be the best in the world at taking advantage of the opportunities offered by digitalization, is increasingly looking like an empty backdrop with no ambition or will to act. Expectations of an ambitious plan fell flat. It didn't even make a dent!

Christina Ramm-Ericson, Head of Industrial Policy, IT&Telecom Industries