Is Scandinavia Ahead of Europe?
In Scandinavia the welfare state and the free market economy are compatible. The crisis of the 1990s seems to have been overcome. What has changed in Scandinavia, and which countries are its European neighbours looking to as a model?
Sweden
Expressen - Sweden | Saturday, 22. September 2007
Sweden's Finance Minister Anders Borg has announced the introduction of tougher controls on the long-term sick regarding their ability to work. The government also plans to make it more difficult to work half-days for years on end while receiving unemployment benefit. The newspaper comments: » more
Sweden's Finance Minister Anders Borg has announced the introduction of tougher controls on the long-term sick regarding their ability to work. The government also plans to make it more difficult to work half-days for years on end while receiving unemployment benefit. The newspaper comments: "No one will land in the gutter but life will get tougher for some. Nonetheless the government's policy is aimed at creating more jobs... as well as offering rehabilitation and subsidised employment to people on the margins of society. The goal is to restructure a system in which 1.5 million people of working age were outside the job market when the Social Democrats left office... The budget presented by Mr Borg ... is the most bold and responsible budget ever presented by a conservative government."
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More from the press review on the subject » Fiscal Policy, » Health Policy, » Tax Policy, » Sweden
Dagens Nyheter - Sweden | Monday, 18. June 2007
Sweden's government wants to facilitate immigration for workers from non-European countries. Its main trade union LO, however, opposes this proposal owing to fears that the more flexible laws could be open to abuse. The newspaper recalls the case of a Latvian construction company based in Vaxholm that was blocked by Swedish trade unions and eventually went bankrupt. It says the real cause for the LO's opposition is its "fear of losing control of the job market. This is what the Vaxholm conflict was all about - it wasn't about collective agreements or wage dumping. They were only concerned about their own interests, not the Latvian workers. In Vaxholm trade unionists shouted 'go home.' The LO leadership didn't express itself as openly or directly, but this is what it was thinking, and it supported that message. The organisation is adopting the same stance towards non-European workers: » more
Sweden's government wants to facilitate immigration for workers from non-European countries. Its main trade union LO, however, opposes this proposal owing to fears that the more flexible laws could be open to abuse. The newspaper recalls the case of a Latvian construction company based in Vaxholm that was blocked by Swedish trade unions and eventually went bankrupt. It says the real cause for the LO's opposition is its "fear of losing control of the job market. This is what the Vaxholm conflict was all about - it wasn't about collective agreements or wage dumping. They were only concerned about their own interests, not the Latvian workers. In Vaxholm trade unionists shouted 'go home.' The LO leadership didn't express itself as openly or directly, but this is what it was thinking, and it supported that message. The organisation is adopting the same stance towards non-European workers: foreigners should stay in their home countries."
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Upsala Nya Tidning - Sweden | Thursday, 24. May 2007
The Swedish daily criticises the summation of the Advocate General at the European Court of Justice and asks: » more
The Swedish daily criticises the summation of the Advocate General at the European Court of Justice and asks: "How did we become prosperous? Is it down to protectionism and isolationism or down to Swedish companies competing successfully on export markets all over the world?... Building walls to keep out the world around us is not in Sweden's interests, but threatens our future. If we take it for granted that Swedish companies should have access to other countries' markets we must give the companies from other countries the same opportunities in Sweden."
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More from the press review on the subject » EU enlargement, » Social movements, » Corporations, » Latvia, » Sweden, » Europe
Dagens Nyheter - Sweden | Friday, 9. March 2007
In addition to the consequences of climate change the EU summit in Brussels is also examining the economic development of EU member states, whose economic problems are far from being solved. Sweden being one of them, the daily comments: » more
In addition to the consequences of climate change the EU summit in Brussels is also examining the economic development of EU member states, whose economic problems are far from being solved. Sweden being one of them, the daily comments: "In recent years Scandinavia has been held up as a shining example. Thanks to the economic boom of the North, countless politicians made a pilgrimage to Copenhagen, Helsinki and Stockholm to learn from their role models. However, as a recent EEAG report [on Europe's economy] shows, unfortunately it's still too early to draw the conclusions that proponents of the social model would like to see drawn. It's true that Sweden and Finland in particular have experienced an economic boom over the past decade. However, this boom must be attributed to the crisis of the early 1990s. ... Although Scandinavia economies have certainly recovered since then, it's ridiculous to talk of a Scandinavian miracle. ... Like the rest of the European continent, Sweden, too, must step up its reform activities, because Scandinavian boasting won't create new companies and jobs."
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More from the press review on the subject » Corporations, » Northern Europe
Main focus of Tuesday, 17. October 2006
After only ten days in office Sweden's new four-party coalition government, led by Prime Minister Frederik Reinfeldt, is under pressure. The minister of trade, Maria ... » more
After only ten days in office Sweden's new four-party coalition government, led by Prime Minister Frederik Reinfeldt, is under pressure. The minister of trade, Maria Borelius, and the minister of culture, Cecilia Stegö Chilò, have been forced to resign owing to personal negligence. The government's presentation of the new budget, including the promised reduction in income taxes, was overshadowed by these resignations.
More from the press review on the subject » Domestic Policy, » Sweden
The Independent - United Kingdom | Friday, 15. September 2006
As elections approach, a duel is taking place between centre-left (Goran Persson) and centre right (Fredrik Reinfeldt) in Sweden, "embodiment of the Scandinavian model-A high-tax, ... » more
As elections approach, a duel is taking place between centre-left (Goran Persson) and centre right (Fredrik Reinfeldt) in Sweden, "embodiment of the Scandinavian model-A high-tax, high-benefit society, with a relatively narrow discrepancy between the highest and lowest earners", comments the daily. "Mr Reinfeldt has shifted his party towards the centre and has been careful not to give the impression that he would dismantle Sweden's welfare state. ... A pledge to cut some taxes also features in his manifesto. Mr Persson, for his part, ... argues that Sweden's relatively high taxes have not impaired economic growth, which is running above 4 per cent. It is a combination that has encouraged French and German reformists to look to the Scandinavians, as much as to the British, for inspiration."
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More from the press review on the subject » Domestic Policy, » Sweden
Hospodářské noviny - Czech Republic | Friday, 15. September 2006
The outcome of the elections on Sunday in Sweden will be interesting, not only for the Swedes, Jiri Sladek explains. "After dozens of years it ... » more
The outcome of the elections on Sunday in Sweden will be interesting, not only for the Swedes, Jiri Sladek explains. "After dozens of years it seems possible that the Swedish electorate may vote the old social welfare state out of office. By doing so they would be dismantling a model that was basically a Swedish invention… Unemployment is down to less than six percent, and the economy has grown more than in the past six years. The old model has been lucrative for Sweden. They've had free health care and haven't had to pay tuition fees for the excellent education they receive, but now they're being told the system is no longer viable… The service sector and the labour market need reform. But first opposition leader Fredrik Reinfeldt must make the unemployed understand why cutting their benefits will lead to more jobs."
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Denmark
Berlingske - Denmark | Wednesday, 21. June 2006
On June 20 Denmark's government and opposition have agreed to pass the so-called Welfare Reform. Among other things, the reform foresees raising the retirement age to 67 and new incentives for finishing university courses quickly. Some commentators describe the results as an uninspired compromise, but the Copenhagen daily is relieved that the reform is actually being pushed through: » more
On June 20 Denmark's government and opposition have agreed to pass the so-called Welfare Reform. Among other things, the reform foresees raising the retirement age to 67 and new incentives for finishing university courses quickly. Some commentators describe the results as an uninspired compromise, but the Copenhagen daily is relieved that the reform is actually being pushed through: "The remarkable thing is that the reform carried a majority of the votes despite all its unpopular aspects, and also that it has been passed at a time when the Danish economy is doing well…The government carefully prepared Danish citizens for the measures over a long period of time. This has met with acceptance because a slight change in course now is better than radical measures later. France and Germany will envy us our reform. The important lesson to be learned here is that the people are willing to listen to good arguments."
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More from the press review on the subject » Domestic Policy, » Denmark
Estonia
Postimees - Estonia | Thursday, 22. February 2007
According to a study published by the International Monetary Fund (IMF) the Baltic States are making rapid economic progress and may soon bring up the ... » more
According to a study published by the International Monetary Fund (IMF) the Baltic States are making rapid economic progress and may soon bring up the economic rear in the EU together with Portugal. However, the chances of them experiencing a long-term boom like that in Ireland are also not bad, the report concludes. The Estonian paper asks if Ireland can really serve as a role model for Estonia. "The general euphoria has also given way to a certain degree of scepticism among the Estonian people about how sustainable our economic growth really is. Even so, comparisons with Portugal are not really appropriate, nor can Ireland really serve as a role model. There can be no doubt that the Irish model is a sure bet because in Ireland there is a consensus between employers and employees about suitable outline agreements. However, we must bear in mind that Ireland took the first important steps towards boosting its industry a quarter of a century ago. It sounds like a cliché, but for Estonia, the only alternative is a science and research-based economy. Portugal, on the other hand, has the red lantern in the EU because of its low level of education, which is markedly higher in Estonia."
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More from the press review on the subject » Domestic Policy, » Science / Research, » Estonia
Poland
Rzeczpospolita - Poland | Tuesday, 15. May 2007
According to a survey published by the newspaper, twelve percent of Poles - in other words over three million people - will leave Poland to seek work abroad over the next year. Most of them want to go to Great Britain, Germany or Ireland. Piotr Gabryel comments: » more
According to a survey published by the newspaper, twelve percent of Poles - in other words over three million people - will leave Poland to seek work abroad over the next year. Most of them want to go to Great Britain, Germany or Ireland. Piotr Gabryel comments: "This is not, in itself, a bad thing. On the contrary, it could even be good - however for that there would have to be movement in both directions. This would require that many Poles who have already left the country return and that foreigners move to Poland in droves. But unfortunately this is not the case. Polish politicians are losing the battle for the Poles. ... because they lack the vision, knowledge and courage to push through the reforms that would turn our country into a paradise for enterprising individuals... We need the kind of courage that the Irish had in the 1980s. ... They liberalised their economy to such an extent that many of those who had emigrated returned. Today, with their support, Ireland is winning the battle for workers and is on its way to becoming one of the wealthiest countries in the EU."
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More from the press review on the subject » Domestic Policy, » Poland, » Ireland
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General opinions
La Stampa - Italy | Tuesday, 28. August 2007
According to Giuseppe Berta, a professor of contemporary history at the Università Commerciale L. Bocconi in Milan, the European economy has changed drastically since the 1970s. "The rise of [intra-European] tourism, services, ... and the offer of culture... . These have become the growth engine, replacing industry. In today's Europe, the status of the market and competition has grown, without which the place of government would be greatly reduced. Europe is not America, ... we don't renounce the social state: » more
According to Giuseppe Berta, a professor of contemporary history at the Università Commerciale L. Bocconi in Milan, the European economy has changed drastically since the 1970s. "The rise of [intra-European] tourism, services, ... and the offer of culture... . These have become the growth engine, replacing industry. In today's Europe, the status of the market and competition has grown, without which the place of government would be greatly reduced. Europe is not America, ... we don't renounce the social state: this means investment in public infrastructure, education, etc. ... This model is common to governments of both the right and the left. It's not, therefore, on fundamentals that conservatives and progressives differ, ... but rather on foreign policy or civil rights."
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More from the press review on the subject » EU Policy, » Europe
All available articles from » Giuseppe Berta
taz - Germany | Friday, 9. March 2007
German Green politician Karl-Martin Hentschel enthuses about the Scandinavian model, which combines economic growth and a welfare state in spite of high taxes. "The secret ... » more
German Green politician Karl-Martin Hentschel enthuses about the Scandinavian model, which combines economic growth and a welfare state in spite of high taxes. "The secret of Scandinavia's success is the State's closeness to its citizens. The municipal communes are the State. For example they collect most of the tax revenues... Therefore, in Sweden almost 50 percent of public spending is administered by the communes. In Denmark it's around 66 percent. The average citizen only comes in contact with the federal state when he has dealings with the army, the police force or the judiciary, which are the traditional institutes of the authoritarian state. Given the important role of the communes it's no wonder citizens are willing to pay higher taxes. They see where the money's spent."
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More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Tax Policy, » Northern Europe
All available articles from » Karl-Martin Hentschel
Financial Times - United Kingdom | Thursday, 18. January 2007
Risto Penttilä, director of EVA, the Finnish business and policy forum ponders the secret of Nordic success. "People in the five Nordic countries work fewer hours per year and fewer years per career than people in Japan, the US, Germany or almost any other place. Yet the Nordic countries have fared rather well: » more
Risto Penttilä, director of EVA, the Finnish business and policy forum ponders the secret of Nordic success. "People in the five Nordic countries work fewer hours per year and fewer years per career than people in Japan, the US, Germany or almost any other place. Yet the Nordic countries have fared rather well: Finland, Denmark and Sweden are among the top five in global competitiveness rankings. The two laggards, Norway and Iceland, are among the top 15. So how can the Protestant work ethic help to explain the success of the Nordic countries? The answer is that citizens of the Nordic countries are as serious about leisure as they are about work. Having a good balance between life and work is considered as important as working hard once was. ... In other words, the Protestant work ethic has been complemented by the Protestant leisure ethic. ... They offer hope to the toiling masses of the world."
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More from the press review on the subject » EU Policy, » Domestic Policy, » Northern Europe
All available articles from » Risto Penttilä
Die Welt - Germany | Friday, 30. June 2006
"The Nordic model has something for everyone," writes financial journalist Inga Michler. "But this is precisely the problem. The approaches to problem solving in Denmark, Sweden and Finland are so diverse and the conditions in each country so different, that there's no way you can derive 'the ideal model' for Germany from them." Finland's education policy is a clear example: » more
"The Nordic model has something for everyone," writes financial journalist Inga Michler. "But this is precisely the problem. The approaches to problem solving in Denmark, Sweden and Finland are so diverse and the conditions in each country so different, that there's no way you can derive 'the ideal model' for Germany from them." Finland's education policy is a clear example: "For years now, this country, which educates its children at comprehensive schools until they're 16, has had the top ranking in the PISA student achievement study. But should this model be adopted in Germany? Only to a limited extent because Finland has hardly any immigrants." Whether you're talking about Denmark's "flexicurity" model, paternity leave in Finland or Swedish fiscal policy: "There are many good ideas in the North, but there's not a standard model that could be taken as a whole and implemented in Germany."
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More from the press review on the subject » EU enlargement, » Domestic Policy, » Germany, » Northern Europe
All available articles from » Inga Michler
Financial Times - United Kingdom | Wednesday, 1. March 2006
Columnist Martin Wolf suggests the failings of Europe's current welfare state outweigh the benefits. "The time has come for Europeans to ask themselves the unthinkable: » more
Columnist Martin Wolf suggests the failings of Europe's current welfare state outweigh the benefits. "The time has come for Europeans to ask themselves the unthinkable: can their vaunted social model endure? ... The European state is maternal: protective but also infantilising. Its high taxes and benefits discourage anybody from doing too well, while ensuring that nobody does badly. Its services are available to all, but are also mediocre and inflexible ...For all its much discussed inefficiencies, the trial and error of the market economy proved more effective, because it was more creative and flexible, than Soviet planning. While a far smaller error, European social democracy looks increasingly unworkable in the long run."
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More from the press review on the subject » Society, » Europe
All available articles from » Martin Wolf
Der Standard - Austria | Tuesday, 28. February 2006
Social scientist Josef Weidenholzer still hopes that Europe's social model can be saved. He says northern European social models could serve as an example for ... » more
Social scientist Josef Weidenholzer still hopes that Europe's social model can be saved. He says northern European social models could serve as an example for Europe as a whole. Typical for these universalistic welfare states is "a large volume of government transfer fee payments and each government giving top priority to employment policy, in addition to the strong role of the State. Owing to its delayed industrialisation, southern Europe has failed to develop specific social welfare systems, while eastern Europe is still coping with the problems arising from its transition to a free market economy... A European social model that really deserves the name would guarantee prosperity and competitiveness, prevent social division by safeguarding basic social rights, and help to reinforce the concept of Europe in the minds of Europe's citizens."
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More from the press review on the subject » EU Policy, » Europe
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El País - Spain | Tuesday, 10. January 2006
The Finnish head of state Tarja Halonen, regarded as the frontrunner in the presidential election whose first round is set for Sunday, January 15, defends the Nordic social model in an interview led by Adrián Soto. "The strong commitment to an egalitarian and corruption-free society has popular support and I don't see why we should throw it into the wastebin. I can offer the following example: » more
The Finnish head of state Tarja Halonen, regarded as the frontrunner in the presidential election whose first round is set for Sunday, January 15, defends the Nordic social model in an interview led by Adrián Soto. "The strong commitment to an egalitarian and corruption-free society has popular support and I don't see why we should throw it into the wastebin. I can offer the following example: a Finnish mother who has children to take care of, regardless of where she stands politically, knows that it is easier to live with the Nordic model because she needs support if she is to succeed in juggling her professional livelihood and domestic demands. And in Finland's case, it is the State that provides this support."
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More from the press review on the subject » Domestic Policy, » Finland
All available articles from » Tarja Halonen
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