A photorealistic illustration of Swedish government officials announcing an energy crisis package in parliament.
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Government presents 17.5 billion kronor crisis package

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The Swedish government presented a 17.5 billion kronor crisis package on Wednesday to tackle the global energy crisis. Backed by the Sweden Democrats, the measures are set to be approved by parliament before the summer recess.

Finance Minister Elisabeth Svantesson justified the package by citing the war in Iran and its impact on Sweden's economy. She described the situation as the worst global energy crisis seen so far.

The package includes further cuts to taxes on petrol and diesel for an extended period as well as topped-up electricity support for households. Martin Kinnunen of the Sweden Democrats promised significant effects for households that need a car to get to work.

Green Party co-spokesperson Daniel Helldén called the proposal petrol populism and instead advocated halved public transport prices. The government has not yet detailed all parts of the package.

Watu wanasema nini

Initial reactions on X to the Swedish government's 17.5 billion kronor crisis package show a mix of skepticism about prior claims of empty coffers versus sudden spending, criticism of borrowing and timing amid energy crisis, defense of measures to support households, and neutral reporting of details like tax cuts on fuel.

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Swedish PM Ulf Kristersson shakes hands at EU summit, securing bottleneck fees for national electricity grid expansion.
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Kristersson secures Swedish bottleneck fees at EU summit

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Prime Minister Ulf Kristersson has received guarantees at the EU summit in Brussels that Swedish bottleneck fees will only fund expansion of the Swedish electricity grid. The funds will not be used for European projects. Meanwhile, the EU emissions trading system is defended against calls for changes.

Opposition shadow budgets emphasize electric cars and government criticism

Sweden's opposition parties have unveiled their shadow budgets for spring 2026, with increased electric vehicle support as a rare common thread. They sharply criticize the government while proposing economic and welfare measures. Key proposals target electric cars, child benefits, and jobs for the long-term unemployed.

Climate minister wants to scrap transport target

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Climate Minister Romina Pourmokhtari proposes scrapping Sweden's national target to reduce transport emissions by 70 percent by 2030 compared to 2010 levels. Opposition parties Social Democrats and Green Party strongly criticize the idea, calling it embarrassing and proof of the government's failed climate policy. So far, emissions have only decreased by 19 percent, according to the Swedish Environmental Protection Agency.

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Spanish government approves two anti-crisis decrees after Sumar tension

Spain's Council of Ministers was delayed over two hours on Friday due to disagreements between PSOE and Sumar on housing measures amid the Iran war energy crisis. Pedro Sánchez negotiated directly with Yolanda Díaz to split the package into two decrees: a main one with tax cuts worth 5 billion euros and another extending rent contracts. Both take effect tomorrow, though the housing decree may fail in Congress.

Klingbeil and EU ministers urge EU-wide tax on energy firms' excess crisis profits

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German Finance Minister Lars Klingbeil, together with counterparts from Austria, Italy, Portugal and Spain, has called on the EU Commission to swiftly develop an EU-wide tax on excessive profits by energy companies. In a joint letter, they reference the 2022 solidarity contribution introduced during the energy crisis following Russia's invasion of Ukraine, proposing a similar instrument amid current market distortions from the Iran war.

Major banks warn of higher mortgage rates if new bank tax introduced

Social Democrats propose a temporary bank tax of four billion kronor ahead of the autumn election. Major banks warn they will raise mortgage rates if the tax is introduced. Finance Minister Elisabeth Svantesson cautions that costs will be passed on to customers.

Moderates open to governing with SD in Dalarna

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The Moderates in Region Dalarna presented a budget alternative yesterday ahead of the autumn election. The party opens the door to cooperation with the Sweden Democrats and other parties if moderate policies gain traction.

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