Sveriges kommuner och regioner warns of major demographic challenges

Many Swedish municipalities and regions face a shrinking population while costs largely remain the same, according to the Swedish Association of Local Authorities and Regions (SKR), reported by SVT Nyheter.

“The challenges are very large,” said Anders Henriksson (Social Democrat), chair of SKR.

Chief economist Emelie Värja explained at a press conference that when a municipality’s population decreases, revenues disappear immediately while costs are much harder to adjust. The number of very elderly people is increasing, driving up expenses. “We are facing a major demographic shift,” she said.

Värja estimated that elderly care will need to be expanded by about 60 billion Swedish kronor. “We need to realise that this is underway. It will require quite a few bold decisions,” she added.

Henriksson said that the state also has a responsibility. “The state must support us from an overall perspective and not propose measures that make things more difficult for us,” he said.