1. Entry, exit and sustainability - some Swedish experiences on public governance and fiscal policy
by Urban Hansson-Brusewitz Budget Director, Budget Department Ministry of Finance

2. GDP growth and forecast
Sources: Eurostat, US Dep. of Commerce, Statistics Sweden and Ministry of Finance.

3. GDP in Sweden Percentage change per year, 1920–2012
Note: Time series before and after 1950 are not completely comparable. The quality of data from earlier years
is more uncertain. Sources: Edvinsson ( ) and Statistics Sweden ( ); forecast from
Ministry of Finance ( )

4. The 2010 budget for Sweden Measures to combat crisis
Reduce effects of unemployment shock;
Prevent unemployment from becoming lasting;
Focus on core welfare services.

5. Very expansionary fiscal policy 2009-10 Source: OECD Economic Outlook 2009, June
Percent of GDP
Automatic stabilisers
Discretionary fiscal policy

6. GDP in Sweden Percentage change per year, 1920–2012
Note: Time series before and after 1950 are not completely comparable. The quality of data from earlier years
is more uncertain. Sources: Edvinsson ( ) and Statistics Sweden ( ); forecast from
Ministry of Finance ( )

7. Government revenues in Sweden - forecast revisions since Spring Bill 2008, billions kronor

8. Lessons from the Swedish crisis in 1990’s
Consolidation program min 90’s aimed at
balancing austerity vs. growth prospects;
yield credible short term budget gains;
Cuts in transfer payments, less in core services.
Reform needs to target expenditure cuts;

9. Hours worked, Sweden
Index 1990=100

10. Public debt in Sweden compared to EU - Gross Public Debt. Source: OECD.
Percent of GDP

11. Sustainable public finances in Sweden Indikatorn The S2 indicator shows the permanent improvement in surplus needed for sustainable public finances. A negative number imples that the public finances are sustainable and can withstand some weakening.Source: European Commission 2009.
Percent of GDP

12. Summary Keep your own house in order;
Stronger fiscal rules on national level to support Stability and Growth Pact;
Expenditure ceilings are useful tools;
Fiscal rules cannot survive without political support;
EU public finances substantial challenges ahead – costs from ageing population;
Enter by all means, but also think exit.