Reduced state ownership

"The State should provide the business sector with good conditions, make the rules and ensure that they're obeyed. However, just like in football, the referee should do his job and not try to be an extra player."

This statement was made by Mats Odell, the minister responsible for the Government's efforts to reduce state-ownership of companies.

The Swedish state owns 55 companies or groups, with around 190,000 employees. In June 2007, these companies had an estimated value of some SEK 770 billion. This makes the state one of the largest corporate owners in Sweden.

The state must be a responsible corporate owner and ensure that the value of its companies grows as well as possible. Part of being an active and responsible owner is to sell companies when there is no longer any reason for continued ownership. In the long run the state should only be an owner when there are weighty reasons for continued state ownership.

The Government has submitted a Bill to the Riksdag, expressing its intention to reduce its stake in six companies. The Government intends to reduce state ownership in the following companies:

• The bank group Nordea (19% state-owned)
• The exchange company OMX (6.6%)
• The residential mortgage institute SBAB (100%)
• The telecom company TeliaSonera (37.3%)
• The real estate company Vasakronan (100%)
• The alcoholic beverages manufacturer Vin & Sprit (100%)

These companies operate on wholly commercial, competitive markets where there is free entry. The Government considers that these companies would have better prospects for development with another owner than the State. Reducing state ownership can thus provide better conditions for growth and contribute to strengthening Swedish competitiveness and employment.

The income from these sales will be used to pay off the government debt and reduce the burden of debt for future generations. At the end of 2006, central government debt was SEK 1,220 billion or just over SEK 130,000 per person. The Government's ambition is to sell companies to a value of SEK 200 billion during 2007-2010. Together with the general government financial surplus, this would reduce central government debt to SEK 1,005 billion or just under SEK 109,000 per person.