Sweden’s plan for recovery and resilience
The Council of the European Union, the European Parliament and the European Commission have agreed on a temporary recovery instrument, NextGenerationEU (“NGEU”), to stimulate the European economy following the COVID-19 crisis. At the heart of the NGEU is the Rehabilitation and Resilience Facility (“RRF”), which includes € 750 billion in grants and loans aimed at repairing the immediate economic and social damage caused by the pandemic in the Member States up to 31 December 2026. help rebuild the European Union in an environmentally sustainable, digitally developed and resilient way in order to be better prepared for current and future challenges.
In order to ensure that the funds paid out through the recycling package are used in a manner that corresponds to the purposes described above, a number of requirements have been set for the measures for which the RFF support is sought. For example, at least 37 percent of the costs must be allocated to climate change and a further at least 20 percent to digital change or related challenges.
Description of the national recovery plan
The Swedish government has applied for approximately EUR 3.2 billion (SEK 34 billion). However, Sweden’s recovery plan has not yet been approved by the Commission. Approval is expected at the end of September, but the waiting period can be extended.
The final amount that Sweden will receive in grants must be determined no later than 30 June 2022 and depends on how the crisis has affected the economic development in Sweden and other EU countries. The disbursement of funds from the facility is linked to the fact that reforms and investments are implemented based on predetermined goals and sub-goals, which must have taken place before the end of August 2026.
The Swedish recovery plan is built around five components, which include projects that cover the entire RRF period until 2026, with a strong concentration of projects during the first three years of implementation.
Green recovery
40 percent of the estimated costs in the Swedish recovery plan are attributable to areas that promote green recovery. Sweden has a more ambitious goal of reducing greenhouse gas emissions than the general EU, especially when it comes to domestic transport. Within the framework of the contributions from the RRF, the following reforms and investments are proposed:
- Abolished reduction of energy tax on heating fuels in manufacturing, agriculture, forestry and aquaculture;
- Reinforced and simplified environmental management in the bonus – malus system for light vehicles;
- Reinforcement of fuel changes through gradually increasing levels of reduction in the reduction obligation and diesel investments;
- Local and regional climate investments, including railway investments; and
- Support for energy efficiency in apartment buildings.
The estimated costs are SEK 16.30 billion.
Education and transition to work
The goal is to increase employment opportunities by raising human capital among the unemployed. This will be done by facilitating structural changes, in particular adaptation to the increasingly digital society, by training the workforce, increasing flexibility in the labor market through a modernized labor law and increasing opportunities for adaptation. These goals will be achieved through:
- Changed labor law and increased opportunities for adjustment investments;
- Resources in regional vocational training for adults; and
- Resources to meet the demand for education at universities.
The estimated costs are SEK 5.10 billion.
Better conditions for meeting the demographic challenge and ensuring the integrity of the financial system
The overall goal is for the elderly to have access to good care and care. This goal will be achieved by:
- Promotion of elderly care;
- Extended working life and adapted age limits in social insurance and tax systems;
- Strengthened measures against money laundering and terrorist financing. and
- A new account and value system.
The estimated costs are SEK 4.58 billion.
Expansion of broadband and digitalisation of public administration
The goal is to expand the digital infrastructure and make the public administration more efficient and effective by taking advantage of the opportunities of digitalisation. This will be done by:
- Intra-administrative digital infrastructure;
- Broadband expansion; and
- Research in digitization.
The estimated costs are SEK 4.62 billion.
Investments for growth and housing.
The overall goal is to promote private investment, contribute to increased housing construction and improve the functioning of the housing market. This will be done through investment support for rental housing and housing for students. The estimated costs are SEK 3.00 billion.
Practical aspects
As the Swedish recovery plan is awaiting approval, there is currently no applicable legislation on eligibility or implementation of the projects listed in the plan. The general implementation will, however, be based on existing public administration structures and processes regulated by Swedish statutes. All measures included in the Swedish recovery plan have been proposed in the state budget for 2020 or 2021.
The Swedish public administration has a strong tradition of internal control and evaluation, which ensures that necessary checks can be made in the implementation of the recovery plan. In addition, the municipalities have a high degree of independence, especially in terms of regional and local expenditure, which makes it possible to incorporate local perspectives in the implementation of the recovery plan. The authorities responsible for managing and monitoring the use of EU funds are primarily the Swedish Agency for Economic and Regional Growth and the Swedish Energy Agency. The experience, capacity and technical expertise of these authorities facilitate the effective implementation of the recovery plan. The structure and function of the administration and working methods are factors that further contribute to counteracting an incorrect allocation of resources and double funding of EU funds.
The different components and sub-criteria have different target groups and requirements. The specific national responsible authority is responsible for the implementation of the initiative and the potential calls for proposals.
More information about the Swedish recovery plan is available here.