Moderaterna's 2026 Budget Approved Amid Political Tensions with Socialdemokraterna

Sweden’s Riksdag has approved the Moderate Party’s budget proposal for 2026, a move that the Moderates tout as rescuing the nation from the economic pitfalls they attribute to the Social Democrats’ fiscal policies. The approved budget, led by Prime Minister Ulf Kristersson's Moderate-led government, focuses on combating inflation and unemployment while increasing disposable income for families and pensioners. Notably, a family with a police officer and a nurse is expected to receive an additional 5,000 SEK monthly in 2026 compared to 2022, and a single parent working in care will gain 3,100 SEK more monthly.

The budget includes reforms totaling about 80 billion SEK and emphasizes tax reductions, halving food VAT, and lowering electricity and preschool fees. In sharp contrast, the Social Democrats have proposed over 28 billion SEK in tax increases, which Moderates argue would hinder jobs and economic growth. A critical point of contention is Social Democrats’ plan to eliminate the deduction for the waiting day in sickness benefits, potentially costing between 5 to 40 billion SEK, while allocating only half a billion SEK to support small and medium-sized businesses.

Meanwhile, political tensions extend beyond the budget debate into the realm of televised political duels. Moderaterna fears marginalization in the upcoming party debates, concerned that Socialdemokraterna may sideline Prime Minister Kristersson by engaging only with the Sweden Democrats’ leader Jimmie Åkesson. A source within Moderaterna warned this risk could signal a diminishment of their political influence under Kristersson’s leadership. Social Democrats’ Tobias Baudin welcomed this debate setup, claiming it reflects Åkesson’s significant influence in government affairs, calling Kristersson a "puppet." The Sweden Democrats maintain they are the main opposition to Socialdemokraterna. SVT, the broadcaster facilitating these debates, insists on inviting all major party leaders, adhering to traditional debate formats.

This combination of budget approval and ongoing political rivalry highlights the sharp divides among Sweden’s leading parties as they navigate key economic and democratic challenges ahead of the 2026 parliamentary session.