Press release 27 November 2007
Ministry of Finance

Sweden's new convergence programme shows strong and sustainable public finances

Public finances are strong and sustainable in the long term. This is evident from Sweden's ninth updated convergence programme, which was today submitted to the European Commission and the Council.

"It is gratifying that we have submitted a convergence programme that clearly shows that we have strong public finances. Sound public finances are a keystone of our policy for more jobs and less social exclusion. By prioritising this we lay the basis for favourable economic development," says Finance Minister Anders Borg.

The convergence programme is based on the forecasts, estimates and proposals presented in the Government Budget Bill for 2008. General government net lending is estimated to show a surplus of 2.9 per cent of GDP in 2007 and 2.8 per cent in 2008. Consolidated gross debt in the general government sector, known as Maastricht debt, is estimated at 39.7 per cent of GDP this year and is forecast to fall to 24.5 per cent of GDP in 2010. Estimates made in the updated convergence programme for the period up to and including 2050 show that public finances are sustainable in the long term. GDP is estimated to increase by 3.2 per cent in both 2007 and 2008.

The economic targets remain unchanged. This means, among other things, that public finances should show a surplus of 1 per cent on average over a business cycle.

In accordance with the Stability and Growth Pact, Member States that are members of EMU should prepare stability programmes, while other Member States should prepare convergence programmes. These programmes are essential for monitoring public finances in the EU.