Sweden’s central bank abandoned its efforts to cool household debt growth and the financial regulator’s plan was killed by a court. That’s left the new government with the responsibility of coming up with an answer no matter how unpalatable it may be for voters.
Finance Minister Magdalena Andersson said on Thursday there’s a need for broad talks in parliament to address Sweden’s household debt headache. Measures could include lowering tax deductions on interest payments, a step that’s likely to be unpopular with voters. So far, most politicians, including Andersson, are rejecting such a move even as the subsidy cost could almost double by 2019.
