FridayOL

Sweden's Finance Minister Elisabeth Svantesson has delivered a stark warning about the current state of transatlantic relations, arguing that former U.S. President Donald Trump's unpredictable nature poses a greater economic risk than tariffs or trade disputes. In an exclusive interview, Svantesson detailed the challenges facing the Swedish economy, the impact of global trade tensions, and the complexities of the U.S.-EU relationship.

While acknowledging the potential disruption caused by tariffs and trade barriers, Svantesson emphasized that the uncertainty created by Trump's often-unpredictable policy decisions and rhetoric was far more damaging. “The tariffs are a problem, of course,” she stated. “But the constant shifting of positions, the lack of a clear and consistent strategy – that’s what really undermines business confidence and makes long-term planning incredibly difficult.”

Svantesson's comments come as Europe grapples with a complex economic landscape, facing headwinds from inflation, rising interest rates, and the ongoing impact of the war in Ukraine. Sweden, known for its strong economy and export-oriented industries, is not immune to these global pressures. The Swedish government is focused on maintaining fiscal discipline and supporting businesses through these challenging times.

“We need to be responsible with public finances while also providing targeted support to those who need it most,” Svantesson explained. “Our priority is to ensure that the Swedish economy remains resilient and competitive.” She highlighted the importance of continued investment in innovation, education, and infrastructure to drive long-term growth.

The U.S.-EU relationship remains a crucial element of the global economic landscape. While trade tensions have eased somewhat since the Trump era, Svantesson cautioned that ongoing disagreements over issues such as subsidies and digital taxation could still create friction. “A strong and stable transatlantic partnership is essential for both the U.S. and Europe,” she asserted. “We need to work together to address shared challenges, such as climate change, cybersecurity, and global trade imbalances.”

Looking ahead, Svantesson expressed cautious optimism about the future of the Swedish economy, but stressed the importance of navigating the current uncertainties with prudence and foresight. She reiterated her belief that a predictable and rules-based international order is vital for sustainable economic growth and prosperity. The unpredictable nature of political leadership, she warned, represents a significant threat to that order.

The interview concluded with Svantesson reaffirming Sweden’s commitment to free trade and international cooperation, and her hope for a renewed focus on building stronger and more reliable partnerships with countries around the world. The message was clear: stability and predictability are paramount in an increasingly volatile global economy.