Fresh Swedish elections could bring stability - at a cost
Recovery in Sweden's main stock market index, the OMX30, in the past week may be an indication that investors are increasingly positive about a successful resolution to the political paralysis that has gripped the country since elections in September 2018 failed to produce a new government.
The speaker of the country's Parliament is currently trying for the third time to propose a candidate for prime minister that needs approval through a Parliamentary vote. Should this fail, then there is just one more chance to go through the process before fresh elections are required by law.
The Swedish Election Authority (Valmyndigheten) reported to the speaker on 10 January that the earliest it could hold a new general election would be two and a half months after a fourth, unsuccessful, Parliamentary vote on a new prime minister. It has recommended the date of Sunday 7 April for such an election. This would be followed on 26 May by European elections, which it also has to prepare for.
One of the reasons for the amount of time required to prepare for fresh general elections is that the Authority needs to be sure it can handle votes from expatriate Swedes. It has also noted that postal voting for the European elections start on 11 April. Should a general election be held after 7 April, there is an increased risk for voter confusion. The cost for another general election is estimated at SEK346m (€33.8m).
The OMX30 index was up 4.6% in SEK in the week to 10 January. Over three months it is down -9.47%.
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