Sweden and Germany sign joint air defence pact
Sweden and Germany have signed a letter of intent to deepen their cooperation on air defence.
"This is an important step for two close allies, for Europe's security and for our shared ability to meet Nato capability requirements," Swedish Defence Minister Pål Jonson wrote on X.
According to the minister, the partnership will cover areas such as missile defence, space and advanced combat aircraft capabilities, including unmanned systems.
The document was signed by Jonson and his German counterpart, Boris Pistorius, at the Nato meeting in Ankara.
Swedish vocabulary: air defence – luftförsvar
Sweden aims for 2027 launch of more flexible work permit rules
The Swedish government is finally moving forward with an EU directive that will make life easier for work permit holders who want to change their job or lose their job – news that many readers have been waiting for.
The directive, which was supposed to have been implemented in May, has now been submitted to Sweden's Council on Legislation, the committee that scrutinises all bills before they go before parliament, to ensure that they are in line with the Swedish constitution and existing law.
It means that a work permit will no longer be tied to a certain employer and profession, plus that a worker who changes jobs or employers will no longer have to apply for a new work permit (but they do have to inform the Migration Agency of their change – failure to do this could lead to their work permit being withdrawn – and the new role will still have to meet all the requirements necessary for a work permit).
In addition, if a person has had a work permit for more than two years and is laid off, they will have six months to find a new job before their work permit expires, rather than the current three months. The Local has been calling on the government for years to increase the grace period awarded to laid-off work permit holders.
The legislative changes are proposed to enter into force on February 1st, 2027, more than eight months behind schedule.
Swedish vocabulary: a work permit – ett arbetstillstånd
Slight dip in inflation unlikely to impact Swedish mortgage rates
As The Local reported yesterday, Sweden's inflation rate as measured by CPIF (consumer price index with a fixed interest rate) dropped to 1.3 percent in June, according to a preliminary estimate by Statistics Sweden.
But while it's a slight dip from the 1.5 percent recorded in May, experts believe it will not have an impact on mortgage rates.
"It is slightly down, but perhaps not as much of a drop as the Riksbank had in its forecast," SEB chief economist Jens Magnusson told the TT newswire.
Robert Boije, chief economist at SBAB, noted that inflation still remains within the Riksbank's target range, and that there is no reason to worry about rising inflation, despite global conflicts and oil shortages.
"Bu we can't say we're out of the woods just yet, it's too early for that," Boije told TT.
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Magnusson pointed out, however, that this is the second consecutive month that the inflation figure has come in slightly above forecasts.
"Inflation is low, but there is a small 'but' in that it is an upside surprise. The Riksbank will likely scrutinise this," he said.
Neither economist believes the June figure will have any impact on mortgage rates.
"Our forecast remains unchanged. We expect a hike only at the end of 2027," said Magnusson.
The Riksbank's inflation target is set at 2.0 percent for CPIF inflation, which strips out the effects of mortgage interest rates.
Swedish vocabulary: out of the woods – faran är över
Swedish economy grows faster than expected
The Swedish economy is growing faster than expected, according to fresh GDP figures from Statistics Sweden.
However, manufacturing orders are lagging behind.
Swedish growth rose to 0.9 percent in May compared to the previous month, according to the monthly GDP indicator. The average analyst forecast had predicted a rise of 0.2 percent, according to Bloomberg.
The May figures mark three consecutive months of growth for Sweden. Higher production in the service sector, particularly within information and communication technology, contributed to the boost, according to Statistics Sweden.
A lower volume of imported goods also contributed to the upward trend.
Growth in April stood at 0.6 percent compared to the previous month, according to revised figures.
On an annual basis, Swedish growth in May reached 3.9 percent, Statistics Sweden reports.
However, industrial manufacturing orders in May fell by 3.2 percent compared to April, according to seasonally adjusted figures.
Swedish vocabulary: three consecutive months – tre månader i rad