Swedish govt proposes $104bn infrastructure spending plan

STOCKHOLM: Sweden's government on Friday announced a plan to invest 876 billion crowns ($104 billion) in railways, roads and other infrastructure over the coming decade, aiming to boost recovery from the pandemic and support the shift to a fossil fuel-free economy.

Sweden's economy has coped relatively well with the COVID crisis, thanks in part to a strategy of mainly voluntary restrictions rather than strict lockdowns.

Neverthless, crisis measures to support businesses and families now total 420 billion crowns.

More cash will be needed, especially if the government is to meet its aim of using the recovery to accelerate plans to reach net zero emissions of greenhouse gases by 2045.

"Most areas of society, including the transport sector will have to reach zero emissions within 25 years," Environment Minister Per Bolund told reporters.

"We need strong measures in all areas if we are going to reach our climate goals."

The government proposed spending of 165 billion crowns on maintaining the current rail network, 40 billion crowns more than in the previous national infrastructure plan, and 197 billion for roads, also an increase.

In addition, 437 billion will go to new transport infrastructure, including new, high-speed rail lines.

Parliament has to agree the overall infrastructure plan, which covers the years from 2022 to 2033, before detailed spending decisions are taken.

Sweden is due to hold a general election in 2022.