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Sweden's Fiscal Watchdog Lambastes Government Financing Plan

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Sweden’s fiscal watchdog warned that plans by Finance Minister Magdalena Andersson to abandon the country’s krona-for-krona budget principle risk driving up debt.

The Social Democrat-led minority government has for some time been discussing whether to relax the country’s strict fiscal rules in a bid to push unemployment down to the lowest levels in the European Union by 2020. One idea is to aim for balanced budgets rather than stick with the current target of a 1 percent surplus over a business cycle.