2022-11-232022/23:KU8 · p.3KUConstitution
Changes in the new Riksbank Act
Employment target and the Riksdag's right of initiative in the Riksbank Act
What's at stake: The choice affects how much weight monetary policy places on employment relative to inflation, and whether it is the Riksdag's elected representatives or the Riksbank that in practice controls how the objectives of monetary policy are made precise - a question of democratic control over a policy that affects interest rates, jobs and prices for the whole population.
Case texts and AI reasoning are AI-translated from the Swedish originals; the Swedish text is authoritative.
What the vote decides
The question is whether the new Riksbank Act should be supplemented with an employment target on equal footing with the price-stability target and give the Riksdag the right of initiative to set the precise objectives of monetary policy, or whether the act should be adopted as proposed, keeping a single price-stability target under which the Riksbank holds the initiative.
Yes Yes — the committee proposal
The committee shares the assessment that the new Riksbank Act largely builds on the parliamentary Riksbank Committee's politically anchored proposals, strengthens the Riksbank's independence and standing as a central bank while also increasing scrutiny and openness around its operations - partly through the Finance Committee's expanded oversight role. The committee also shares the assessment that the bill's price-stability target allows for a flexible inflation-targeting policy that takes the real economy into account, and therefore rejects the motion's call for a supplementary employment target and a right of initiative for the Riksdag.
No No — the reservations
Reservation 1 (V)
The reservation (V) calls for the Riksbank Act to be supplemented with an employment target that is not subordinate to the price-stability target, and for the Riksdag - not only the Riksbank - to hold the right of initiative in setting the more precise objectives of monetary policy. The reasoning is that a pure inflation target does not sufficiently account for developments in the real economy and the level of employment, and that the Riksbank's exclusive right to specify the price-stability target undermines elected representatives' ability to steer monetary policy. The reservation also calls for the government to commission an inquiry into stricter rules on senior officials' holdings of securities.
Summarised from the committee report. Party labels in the summary come from the report, not from the vote.
What do the votes mean here?
Yes The committee proposal: rejecting the motions (keeping things as they are).
No Backing the counter-proposal: reservation 1 by V.
Abstain The party marks a position of its own that is not one of the two final alternatives.
What each plan points to — and how the party voted
For each party: the vote its own election manifesto and party programme point to in this case, next to how the party actually voted. A plan can only point to Yes or No; a party can also abstain.
| Plan | Vote | Confidence | Evidence | ||
|---|---|---|---|---|---|
| V | No | No 0/20/0/4 | follows the plan | confidence: high | explicit |
| S | Yes | Yes 93/0/0/14 | follows the plan | confidence: medium | derived |
| MP | No | Yes 15/0/0/3 | departs from the plan | confidence: medium | derived |
| C | Yes | Yes 20/0/0/4 | follows the plan | confidence: medium | derived |
| L | Yes | Yes 13/0/0/3 | follows the plan | confidence: medium | derived |
| KD | Yes | Yes 16/0/0/3 | follows the plan | confidence: medium | derived |
| M | Yes | Yes 59/0/0/9 | follows the plan | confidence: medium | derived |
| SD | Yes | Yes 63/0/0/10 | follows the plan | confidence: medium | derived |
Committee proposal
Parliament rejects motion 2021/22:4297 by Mia Sydow Mölleby et al. (V) demands 1-3.
Original (Swedish)
Riksdagen avslår motion 2021/22:4297 av Mia Sydow Mölleby m.fl. (V) yrkandena 1-3.
Riksdag decision: Parliament said yes to pending proposals for amendments to the Instrument of Government and the Rules of Procedure of the Riksdag concerning the Riksbank and to the government's proposal for a new Riksbank Act. The proposals for amendments to the Instrument of Government and the Rules of Procedure are so-called pending proposals, which means that parliament has made a decision on the matter at an earlier occasion. The amendments to the Instrument of Government include, among other things, a clarification of the Riksbank's tasks. The proposal for amendment to the Rules of Procedure means that it will be clear that parliament's Finance Committee shall follow up and evaluate the Riksbank's activities. Parliament also said yes to the government's proposal for a new Riksbank Act, but with some minor changes. The new Riksbank Act includes, among other things: The objectives, tasks and powers of the Riksbank are clarified with regard to monetary policy, the financial system, means of payment, peacetime crisis situations and enhanced preparedness, and international activities It will become clearer how the Riksbank's areas of responsibility relate to each other and the areas of responsibility of the Financial Supervisory Authority and the National Debt Office It will become clearer that the Riksbank within the framework of monetary policy shall take real economic considerations, and conditions are created for democratic anchoring of the specification of the price stability target The basis of the Riksbank's organization is maintained, but the number of members of the Board is reduced from six to five. A more appropriate distribution of responsibilities is introduced between the Riksbank's Full Assembly, the Board and the Governor of the Riksbank The Riksbank's position as an independent central bank and independent administrative authority is strengthened The Riksbank's financial independence is strengthened within the framework of, for example, disposing of profits and structuring own capital as well as borrowing for the currency reserve The conditions for transparency and review of the Riksbank's activities increase The Riksbank shall contribute to sustainable development on the financial market. Since the proposals in some respects concern amendments to the Instrument of Government and the Rules of Procedure of the Riksdag, it is required that parliament votes the same way twice and there must be an election between the votes. The first decision on the proposals was made on 1 June 2022 and then parliament voted yes. Subsequently, there has been a parliamentary election. All law changes will enter into force 1 January 2023.
Counter-proposals
- The counter-proposal wants to complement the Riksbank law with an equivalent employment target and give the Riksdag the right to determine the precise monetary policy targets. (V) — Reservation 1
Plan vs actual vote
Every party, in chamber order: what its own plan pointed to, how it voted, and the reasoning behind both. Highlighted rows are where the two differ — but a vote that follows the plan is a result too, so the reasoning is there for every party.
The plan requires that full employment should be the overarching goal for both fiscal and monetary policy, and is the only party that says it has such a policy.
Plan documents: party programme · 2022 manifesto
Reasoning and quotes
The plan requires that full employment should be the overarching goal for both fiscal and monetary policy, and is the only party that says it has such a policy. It also rejects that economic policy is subject to market forces outside democratic control. The counter-proposal's employment goal and moved initiative right to the democratically elected is precisely this.
Original (Swedish)
Planen kräver att full sysselsättning ska vara det övergripande målet för både finans- och penningpolitiken, och är det enda partiet som säger sig ha en sådan politik. Den avvisar också att ekonomisk politik underställs marknadskrafter utanför folkvald kontroll. Motförslagets sysselsättningsmål och flyttade initiativrätt till de folkvalda är precis detta.
- full employment as overarching goaldecisive»Vänsterpartiet vill att full sysselsättning ska vara det« (party programme ↗)“The Left Party wants full employment to be the”
- full employment as goal»Ändå är det bara ett parti i riksdagen som har en politik för full sysselsättning – Vänsterpartiet.« (2022 manifesto ↗)“Yet it is only one party in the Riksdag that has a policy for full employment – the Left Party.”
- rejects market submission»Det beror på att vi inte tror på den ekonomiska politik som fört Sverige in i passiv underkastelse inför marknadskrafter, privat riskkapital och starka lobbyister« (2022 manifesto ↗)“That is because we do not believe in the economic policy that has led Sweden into passive submission to market forces, private venture capital and powerful lobbyists”
- democratic control over the economy»Tron på politikens möjligheter måste återupprättas.« (party programme ↗)“Faith in the possibilities of politics must be re-established.”
The election manifesto, which carries most weight, establishes that the party safeguards the Riksbank's independence and its responsibility to stabilise the general price level and believes in the parties' responsibility for wage formation.
Plan documents: 2022 manifesto · party programme
Reasoning and quotes
The election manifesto, which carries most weight, establishes that the party safeguards the Riksbank's independence and its responsibility to stabilise the general price level and believes in the parties' responsibility for wage formation. This speaks against inserting a parallel employment target in the legislation and against moving the initiative from the central bank. The plan's goal of full employment is reached according to the plan through labour market policy, not through the monetary policy mandate.
Original (Swedish)
Valmanifestet, som väger tyngst, slår fast att partiet värnar Riksbankens oberoende och dess ansvar för att stabilisera den allmänna prisnivån samt tror på parternas ansvar för lönebildningen. Det talar mot att lägga in ett sidoordnat sysselsättningsmål i regelverket och mot att flytta initiativrätten från centralbanken. Planens mål om full sysselsättning nås enligt planen med arbetsmarknadspolitik, inte genom penningpolitikens mandat.
- safeguard the Riksbank's independencedecisive»Vi värnar Riksbankens oberoende och ansvar för att stabilisera den allmänna prisnivån och tror på parternas förmåga att ta ansvar för lönebildningen.« (2022 manifesto ↗)“We safeguard the Riksbank's independence and responsibility to stabilise the general price level and believe in the parties' ability to take responsibility for wage formation.”
- credible economic policy»Socialdemokraterna kommer aldrig att medverka till att underminera Sveriges ekonomi.« (2022 manifesto ↗)“Social Democrats will never contribute to undermining Sweden's economy.”
- jobs through labour market policy»En aktiv arbetsmarknadspolitik för fler jobb är särskilt viktig i ekonomiskt oroliga tider.« (2022 manifesto ↗)“Active labour market policy for more jobs is particularly important in economically uncertain times.”
- full employment as goal»Full sysselsättning är det övergripande målet för den socialdemokratiska ekonomiska politiken.« (party programme ↗)“Full employment is the overarching goal of social democratic economic policy.”
The party programme states that the state through fiscal and monetary policy shall dampen economic fluctuations and work for stable prices and low unemployment, thus not merely price stability.
Plan documents: party programme
Reasoning and quotes
The party programme states that the state through fiscal and monetary policy shall dampen economic fluctuations and work for stable prices and low unemployment, thus not merely price stability. That power over the goals shall be exercised by those affected by it speaks to the fact that elected representatives, not the central bank, shall specify monetary policy's goals, and the desire to counter speculation supports stricter rules for securities holdings. The plan therefore supports the counter-proposal.
Original (Swedish)
Partiprogrammet säger att staten genom finans- och penningpolitiken ska dämpa konjunktursvängningar och verka för stabila priser och låg arbetslöshet, alltså inte enbart prisstabilitet. Att makten över målen ska utövas av dem som påverkas av den talar för att folkvalda, inte centralbanken, preciserar penningpolitikens mål, och viljan att motverka spekulation stöder skärpta regler för värdepappersinnehav. Planen stöder därför motförslaget.
- monetary policy for low unemploymentdecisive»penningpolitik dämpa effekter av konjunkturvariationer och verka för stabila priser och låg« (party programme ↗)“monetary policy dampen the effects of economic variations and work for stable prices and low”
- elected control of power»Makt ska utövas av dem som påverkas av den.« (party programme ↗)“Power shall be exercised by those affected by it.”
- counter speculation»Girighet, överskuldsättning och spekulation ska motverkas.« (party programme ↗)“Greed, over-indebtedness, and speculation shall be countered.”
The plan takes no explicit position on what the committee actually decided — often because the committee's reason was procedural. The stance is derived and fully cited, but it does not show the party broke a commitment.
The plan's decisive commitment is that the fiscal framework shall be safeguarded and strengthened and that Sweden's long-term economic stability shall be defended, with stable government finances and stable monetary policy as foundation.
Plan documents: 2022 manifesto · party programme
Reasoning and quotes
The plan's decisive commitment is that the fiscal framework shall be safeguarded and strengthened and that Sweden's long-term economic stability shall be defended, with stable government finances and stable monetary policy as foundation. An employment target not subordinated to the price stability objective and a moved initiative right politicizes monetary policy and conflicts with this. The plan's demand for tightened corruption rules supports however the counter-proposal's part about securities holdings.
Original (Swedish)
Planens avgörande åtagande är att det finanspolitiska ramverket ska värnas och förstärkas och att Sveriges långsiktiga ekonomiska stabilitet ska försvaras, med stabila statsfinanser och stabil penningpolitik som grund. Ett sysselsättningsmål som inte är underordnat prisstabilitetsmålet och en flyttad initiativrätt politiserar penningpolitiken och strider mot detta. Planens krav på skärpta korruptionsregler stöder däremot motförslagets del om värdepappersinnehav.
- safeguarded fiscal frameworkdecisive»Det finanspolitiska ramverket ska värnas och förstärkas, och Sveriges långsiktiga ekonomiska stabilitet ska försvaras.« (2022 manifesto ↗)“The fiscal framework shall be safeguarded and strengthened, and Sweden's long-term economic stability shall be defended.”
- stable monetary policy»statsfinanser och penningpolitik, utbildning och social trygghet kan alla lägga grunden för en stark ekonomi.« (party programme ↗)“government finances and monetary policy, education and social security can all lay the foundation for a strong economy.”
- no to short-term initiatives»Ett resultatinriktat ledarskap som säger nej till kortsiktiga populistiska satsningar och istället söker långsiktiga och konstruktiva överenskommelser förankrade i mitten.« (2022 manifesto ↗)“A results-oriented leadership that says no to short-term populist initiatives and instead seeks long-term and constructive agreements anchored in the centre.”
- tightened corruption rules»Vi vill inrätta en antikorruptionsmyndighet, skärpa regler mot korruption och införa ett lobbyregister.« (2022 manifesto ↗)“We wish to establish an anti-corruption agency, tighten rules against corruption and introduce a lobby register.”
The plan's decisive commitment on the monetary policy area is that Sweden shall adopt the euro and that inflationary pressure shall be countered, which presupposes an independent central bank with price stability as the overriding goal.
Plan documents: party programme · 2022 manifesto
Reasoning and quotes
The plan's decisive commitment on the monetary policy area is that Sweden shall adopt the euro and that inflationary pressure shall be countered, which presupposes an independent central bank with price stability as the overriding goal. An employment target that is not subordinate to the price stability goal, and a moved right to specify the goals, goes against this. The plan wants to achieve high employment through the work line and tax reforms, not through monetary policy's goal formulation.
Original (Swedish)
Planens avgörande åtagande på det penningpolitiska området är att Sverige ska införa euron och att inflationstrycket ska motas, vilket förutsätter en oberoende centralbank med prisstabilitet som överordnat mål. Ett sysselsättningsmål som inte är underordnat prisstabilitetsmålet, och en flyttad initiativrätt att precisera målen, går emot det. Planen vill nå hög sysselsättning genom arbetslinjen och skattereformer, inte genom penningpolitikens målformulering.
- Swedish euro membershipdecisive»Sverige ska införa euron som valuta.« (party programme ↗)“Sweden shall adopt the euro as its currency.”
- combat inflation»Vi vill mota inflationstrycket.« (2022 manifesto ↗)“We want to counter inflationary pressure.”
- stable public finances»Stabila offentliga finanser och låg statsskuld skapar utrymme för Sverige att möta kriser« (party programme ↗)“Stable public finances and low state debt create room for Sweden to meet crises”
- employment through work line»Hög sysselsättning är avgörande för välfärden.« (party programme ↗)“High employment is crucial for welfare.”
The counter-proposal wants to introduce an employment target that is not subordinate to the price stability target and move the initiative authority to specify monetary policy goals from the central bank to the elected representatives.
Plan documents: party programme
Reasoning and quotes
The counter-proposal wants to introduce an employment target that is not subordinate to the price stability target and move the initiative authority to specify monetary policy goals from the central bank to the elected representatives. The party programme's decisive commitment is an independent central bank with a stated responsibility for a stable money value and an pursued low inflation rate. The plan therefore speaks against the demand, even though full employment is also an important political goal in the plan.
Original (Swedish)
Motförslaget vill lägga in ett sysselsättningsmål som inte är underordnat prisstabilitetsmålet och flytta initiativrätten att precisera penningpolitikens mål från centralbanken till de folkvalda. Principprogrammets avgörande åtagande är en självständig riksbank med ett uttalat ansvar för ett stabilt penningvärde och en eftersträvad låg inflationstakt. Planen talar därför mot kravet, även om full sysselsättning också är ett viktigt politiskt mål i planen.
- independent central bankdecisive»detta är en självständig riksbank med ett uttalat ansvar« (party programme ↗)“this is an independent central bank with a stated responsibility”
- low inflation as goal»Därför ska låg inflationstakt eftersträvas.« (party programme ↗)“Therefore a low inflation rate shall be pursued.”
- inflation contradicts stewardship»En ekonomi präglad av inflation och spekulation, ansvarslöshet och egoism, är därför motsatsen.« (party programme ↗)“An economy characterized by inflation and speculation, irresponsibility and selfishness, is therefore the opposite.”
- full employment as goal»Därför är full sysselsättning ett viktigt politiskt mål.« (party programme ↗)“Therefore full employment is an important political goal.”
Worldstate weighed in: Inflation 10.9 percent year-on-year — Strengthens the plan's prioritization of price stability over an equal employment target
The plan's economic line is order and stability, a responsible policy that builds resilience against crises and a protected surplus target.
Plan documents: 2022 manifesto · party programme
Reasoning and quotes
The plan's economic line is order and stability, a responsible policy that builds resilience against crises and a protected surplus target. To put the price stability target on equal footing with an employment target and move the initiative right from the central bank to politics would weaken inflation control and the independence that the party programme sees as important checks and balances. The counter-proposal's demand is rejected.
Original (Swedish)
Planens ekonomiska linje är ordning och reda, en ansvarsfull politik som bygger motståndskraft mot kriser och ett värnat överskottsmål. Att sidoordna prisstabilitetsmålet med ett sysselsättningsmål och flytta initiativrätten från centralbanken till politiken skulle svaga inflationsbekämpningen och den självständighet som partiprogrammet ser som en viktig maktbalans. Motförslagets krav avvisas.
- order in the economydecisive»I tuffa ekonomiska tider krävs ordning och reda i ekonomin.« (2022 manifesto ↗)“In tough economic times, order and stability in the economy are required.”
- responsible economic policy»Sverige behöver hitta tillbaka till en ansvarsfull ekonomisk politik som bygger upp motståndskraft mot kriser och genomföra reformer för fler i arbete.« (2022 manifesto ↗)“Sweden needs to return to a responsible economic policy that builds resilience against crises and implements reforms to get more people into work.”
- independent institutions»Starka självständiga institutioner och en pluralism av samhällssfärer ger en viktig maktbalans i samhället.« (party programme ↗)“Strong independent institutions and a plurality of spheres of society provide important checks and balances in society.”
- protected surplus target»Överskottsmålet ska värnas och det är inte aktuellt att övergå till ett balansmål.« (2022 manifesto ↗)“The surplus target should be protected and it is not current to move to a balanced budget target.”
Worldstate weighed in: Inflation 10.9 per cent and rising base rate — Makes the price stability target's superior position more pressing than an equal employment target
The counter-proposal wants to place an employment target on an equal footing with the price stability target at the Riksbank and transfer the initiative to specify the objectives of monetary policy to the elected representatives.
Plan documents: party programme · 2022 manifesto
Reasoning and quotes
The counter-proposal wants to place an employment target on an equal footing with the price stability target at the Riksbank and transfer the initiative to specify the objectives of monetary policy to the elected representatives. The plan states that monetary policy shall be handled by an independent Riksbank, which speaks against political control of the objectives. The plan's path to more jobs is industry and business policy, not monetary policy targets.
Original (Swedish)
Motförslaget vill lägga ett sysselsättningsmål jämställt med prisstabilitetsmålet på Riksbanken och flytta initiativrätten att precisera penningpolitikens mål till de folkvalda. Planen slår fast att penningpolitiken ska hanteras av en självständig riksbank, vilket talar mot politisk styrning av målen. Planens väg till fler jobb är industri- och näringspolitik, inte penningpolitiska mål.
- independent Riksbankdecisive»Penningpolitiken skall hanteras av en självständig riksbank.« (party programme ↗)“Monetary policy shall be handled by an independent Riksbank.”
- jobs through business policy»Det måste börja med en industripolitik som värnar företagens möjlighet att investera och växa och stimulera tillväxt.« (2022 manifesto ↗)“It must begin with an industrial policy that values companies' ability to invest and grow and stimulates growth.”
- protect the krona»Säkra kronans ställning genom ett svenskt undantag från deltagande i EU:s valutaunion« (2022 manifesto ↗)“Secure the krona's position through a Swedish exemption from participation in the EU's currency union”
- sound public finances»Sunda statsfinanser och respekt för målet om överskott« (party programme ↗)“Sound public finances and respect for the target of surplus”
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Sources and documents
- The committee report on riksdagen.se (2022/23:KU8)
- Committee report full text (HA01KU8)
- Per-MP voting data (API)
- Case status (API)
Documents under consideration
- Motion 2021/22:4297 — med anledning av prop. 2021/22:41 En ny riksbankslag av Mia Sydow Mölleby m.fl. (V)
- Proposition 2021/22:169 — Kompletterande bestämmelser till EU:s förordning om återhämtning och resolution av centrala motparter
- Proposition 2021/22:215 — En ny lag om företagsrekonstruktion
- Proposition 2021/22:41 — En ny riksbankslag
Source: The Swedish Parliament