Swedish sell-off plans thwarted by opposition
Sweden's opposition parties, including the far-right Sweden Democrats, blocked on Wednesday the government's plan to cut its stake in many state-owned companies such as telecoms firm TeliaSonera and energy giant Vattenfall.
Members of parliament opposed increased privatisation by a vote of 172 to 170, the Riksdag said.
The Swedish government -- which is two seats short of a majority in the house -- can therefore not reduce its 37.3 percent stake in TeliaSonera, its 60 percent stake in the postal service or let go of any of mortgage lender SBAB or energy company Vattenfall, which it fully owns.
The privatisation of Nordea bank, of which Sweden owns 13.5 after selling off 6.3 percent in February, was not concerned by Wednesday's vote.
Observers described the centre-right government's defeat on the vote as one of its major setbacks since the September election.
In October, the two largest opposition parties, the Social Democrats and the Greens, presented in Parliament a motion against the privatisation wave, except for Nordea.
The far-right Sweden Democrats said in January they planned to join forces with the leftwing opposition to oppose privatisation, saying important infrastructure should remain in Swedish hands.
When Prime Minister Fredrik Reinfeldt's coalition government first came to power in 2006, it received parliamentary backing for its plans and has already sold Absolut Vodka maker Vin & Sprit, a chunk of telecoms giant TeliaSonera, its share in the Nordic and Baltic stock exchange operator OMX and part of the postal service, among others.
Before winning re-election last September, the government reiterated its intention to let go of part or all of TeliaSonera, Nordea bank and mortgage lender SBAB. It has said energy company Vattenfall and its share of Scandinavian airline SAS could also soon go on the block.
Last Updated (Thursday, 17 March 2011 13:12)





