When the Social Democrats returned to power in 1994, they responded to the fiscal crisis by stabilizing the currency-and by reducing the welfare state and privatizing public services and goods, as governments did in many countries influenced by Milton Friedman, the Chicago Schools of political and economic thought, and the neoliberal movement.Īs Prime Minister he also carried out a comprehensive reform of the tax system.Īfter three years in opposition and an election victory in the 1994 elections, Carlsson formed a new government. The Social Democrats lost the elections in 1991, but Carlsson returned to power after the elections in 1994. In 1990 the Carlsson cabinet resigned after failing to gain a majority for its economic policy agenda, but was reinstated immediately with a slightly changed agenda. īut Sweden's economy began to deteriorate in the early 1990s. 1980s Social Democratic neoliberal measures-such as depressing and deregulating the currency to prop up Swedish exports during the economic restructuring transition, dropping corporate taxation and taxation on high income-earners, and switching from anti-unemployment policies to anti-inflationary policies-were exacerbated by international recession, unchecked currency speculation, and a centre-right government led by Carl Bildt (1991–1994), creating the fiscal crisis of the early 1990s. Together with Minister for Finance Kjell-Olof Feldt, the government turned a budget deficit of 90 billion SEK to a surplus of a few hundred billion SEK, which initially led to large investments and record low unemployment. He was, together with Olof Palme, known as one of "Erlander's boys".įollowing the assassination of Olof Palme in 1986, Ingvar Carlsson became the new Prime Minister or Statsminister and party leader. He had the following ministerial posts: Minister of Education 1969-1973, Minister of Housing 1973-1976, Deputy Prime Minister 1982-1986. In the same year, he also became leader of the Swedish Social Democratic Youth League. After returning home, he was elected member of the Swedish Parliament. In 1965, Carlsson attended Northwestern University in Illinois in the United States as a Fulbright scholar studying economics. In Lund he met with Tage Erlander, the Swedish prime minister, and his aide Olof Palme, later to become Erlander's successor.Īfter finishing studies Carlsson got a job in Erlander's staff. Carlsson has a diploma in business economics and a degree in political science from Lund University. He served as Deputy Prime Minister from 1982 to 1986, and assumed office as Prime Minister of Sweden upon the assassination of Prime Minister Olof Palme in 1986.Ĭarlsson was born in Borås, Västra Götaland County (then Älvsborg County), Sweden and is the third son of the warehouse worker Olof Karlsson and Ida, née Johansson. He served as Minister of Education from 1969 to 1973, as Minister of Housing in 1973 and again from 1974 to 1976, and as Minister of Environmental affairs from 1985 to 1986. He is best known for leading Sweden into the European Union.Ĭarlsson was a member of the Riksdag from 1965 to 1996 representing the constituency of Stockholm County (until 1970 in the lower house). He was leader of the Swedish Social Democratic Party from 1986 to 1996. Gösta Ingvar Carlsson (born 9 November 1934) is a Swedish politician who twice served as Prime Minister of Sweden, first from 1986 to 1991 and again from 1994 to 1996.
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