Political/Legal Factors Sweden

Political/Legal factors

Structure of government

The Swedish government is based on both parliamentary democracy and a constitutional monarchy. The rules of the

system are listed in the constitution formulated in 1974. The king is the ceremonial head, with the prime minister wielding

real, substantial power. The prime minister heads the cabinet and is responsible to the Riksdag (parliament). The

unicameral parliament, Riksdag, is the main legislative body, and has 349 members, directly elected for four-year terms.

Under the Swedish system of proportional representation, 310 seats are allocated on a constituency basis in 28

multimember constituencies; the remaining 39 seats are divided nationally. In order to win parliamentary representation, a

party must poll 4% overall (to receive a seat from the national allocation) or 12% in any one constituency.

Outlook

With the moderate party at the helm, the Swedish political system appears to be moving on steadily with a cautious

approach on promised reforms. The ruling alliance had come to power with promised changes in social welfare policies.

Nevertheless, the government has been staying away from radical reforms, which may cause discontent for voters. The

strong economic condition of Sweden has enabled the government to initiate measures like reducing taxes on the low-paid

and bringing in tax credits. Reform measures have had the positive impact of increasing job creation; but at the same time,

have also cut unemployment benefits, a move not appreciated by the country’s labor unions.

As the global economy slows, and especially with Sweden’s important trade partners like the US and Europe, the country’s

political system faces fresh challenges with the larger than expected downturn of the Swedish economy. The government

will not have the leeway it had in the past to take some populist measures. Although popular support has not gone

drastically against the ruling party, the gap has been narrowing down...