Light and digitization policy imprints in the spring budget
Today, the government's spring amending budget for 2024 was presented. Several bright spots and digitalization policy imprints were found that deserve to be highlighted where TechSweden has been a strong driving force, including in welfare and in the skills supply area.
It is a spring budget that continues to emphasize that the economic situation is difficult but with a brighter future ahead and where the main focus is on investments in welfare and health care as well as defense and justice.
Securing the future of Swedish welfare
SEK 6 billion is being provided to support the regions' financial situation, which is of course commendable in order to cope with the welfare mission in the short term. However, there are no forward-looking reform proposals to secure the long-term future of healthcare, despite the government showing an understanding of future challenges relating to demographics and skills supply. However, the establishment of an efficiency delegation to support structural measures for efficiency through government funding is positive, and we hope that the delegation will have a strong focus on the power and potential of digitalization. Funds are also allocated to accelerate work on a national digital infrastructure for health data.
- The fact that the future welfare challenges are being addressed is positive and that there is an understanding of the demographic challenge. It is essential that the opportunities offered by digitalization are taken advantage of and are part of the solution. The announcement of the acceleration of a national digital infrastructure for health data is gratifying but also crucial to future-proof Swedish welfare," says Christina Ramm-Ericson, Chief Economist at TechSverige.
Efforts to attract and retain international talent
The government also recently presented a targeted initiative to strengthen the coordination of some ten government agencies' efforts to attract and retain international talent.
- These are gratifying and important steps to meet the increasing need for specialists in tech," says Christina Ramm-Ericson.
Reducing the regulatory burden to strengthen Swedish competitiveness
It is also positive that the previously announced Simplification Council will become a decision-making body at the Swedish Agency for Economic and Regional Growth that will produce concrete proposals for simplifying regulations. This is in combination with the earlier initiative for an Implementation Council that will focus on issues to make it easier for Swedish companies to implement EU directives.
- "Good conditions for companies to conduct their business are a prerequisite for Swedish competitiveness and TechSverige has a clear hope that current legislation adopted, both at EU and national level, will be based on the principle of 'Think small first'," says Christina Ramm-Ericson.
More to be desired in digitalization policy
Despite positive announcements, there was more to be desired. In the autumn budget, the government stated that Sweden will not achieve its goal of being the best in the world at exploiting the opportunities of digitization. Many countries are running faster and investing significantly more in technologies such as AI and 5G.
- It is promising that the government is now reviewing its digitization policy with the hope of being able to present a new digitization strategy in 2024 with concrete goals and trend-breaking measures that will reverse the development by 2030, says Christina Ramm-Ericson.
However, the world is moving fast and Sweden cannot stand still while waiting for a new strategy to be finalized before the end of the year.
- The lack of investment in the spring budget amendment to build a competitive digital Sweden is therefore worrying. It is now important that the government prioritizes getting the strategy ready and does not wait to launch the proposals already on the table, says Christina Ramm-Ericson.
The deteriorating security situation and the risk of cyber attacks have prompted the government to strengthen its work on information and cyber security. The Swedish Civil Contingencies Agency (MSB) will receive a reinforcement of SEK 20 million to expand support for cyber incidents.
- "Continued broad work on information and cyber security is welcome. It is important that MSB's work on cyber incidents reaches more people and faster, but more efforts are also needed, especially in the provision of information security skills," says Christina Ramm-Ericson.
In summary, the budget is presented in a situation where inflation has clearly fallen back, which is positive even though the Swedish economy is still expected to be in a recession that will last until 2025. When it comes to increased productivity and growth, reference is made to a large extent to the Productivity Commission, which is due to submit an interim report shortly, and the forthcoming research and innovation bill.
- Given that inflation is starting to recede, the government has room for maneuver that should be focused on creating good conditions for innovation, tech entrepreneurship and growth so that the economic recovery does not drag on, says Christina Ramm-Ericson.
Longer commentary: 'Brightening in sight for the Swedish economy'