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date: 26 June 2019

Abstract and Keywords

Historically, the Social Democratic Party has been the dominant party in Swedish politics. But in 2006 a center-right coalition government came to power in Sweden and ruled until 2014. The chapter asks how this has affected the iconic Swedish welfare state. The center-right government’s legislative action to reform the welfare state was not very radical, but the effects of their non-decisions regarding unemployment benefit continued the long-term hollowing out of its earnings-related component. This triggered many unions to start mandatory group insurance schemes to provide income security for their members. However, the effect of the cash transfers becoming less earnings-related has—so far—not been to undermine the legitimacy of the public sector.

Keywords: cutbacks, retrenchment, social policy, social democracy, privatization

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