Magdalena Andersson: Who is Sweden's new prime minister?


Tim Stickings
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Who is Magdalena Andersson?

Sweden’s Finance Minister since 2014, Ms Andersson was chosen to succeed Stefan Lofven as leader of the ruling Social Democratic Party.

That made her the front-runner to be Sweden’s next prime minister, a position she secured in a parliamentary vote on Wednesday.

She will be Sweden’s first female prime minister — 100 years after the first election in which women were eligible to vote.

Ms Andersson, 54, studied in Sweden, Austria and the US before entering politics and has previously worked in the prime minister's office as an adviser.

What is she promising?

Ms Andersson set out three priorities when she became party leader: tackling criminal gangs, reforming the welfare state and dealing with climate change.

She blamed failed integration policies for the wave in gangland crime, saying the government must address the social problems at the root of the violence.

“The weak society has reached the end of the road,” she said. “Violence is a poison that threatens our entire community.”

On climate change, Ms Andersson wants Sweden to set an example by investing in renewable energy and cutting greenhouse gas emissions.

Meanwhile, the country’s vaunted health and welfare system must be revamped with more public money, rather than relying on private investment, she said.

Forensic police at a crime scene where a Swedish musician was shot dead in Stockholm. AP
Forensic police at a crime scene where a Swedish musician was shot dead in Stockholm. AP

How will she tackle gang crime?

Ms Andersson wants to beef up law enforcement by hiring more police and prosecutors, with a goal of training 3,000 more officers by 2024.

But she pointed the finger at deeper roots of social exclusion, such as overcrowded housing and poor services, which leave a void filled by gangs.

Teachers, social workers and sports clubs are among those who should help bring people back into mainstream society, she said.

She called on people to show “personal responsibility” by not letting their money fall into the criminal underworld via drug deals or questionable businesses.

“Nothing less than a mobilisation of the whole society is required,” she said.

What happens next for her government?

With no majority in parliament, Ms Andersson’s government faces a rocky start when she formally presents her cabinet on Friday.

She won backing from the Left Party by promising help for low-income pensioners, but the concession cost her support from the rival Centre Party, which said it would allow her to become prime minister but not support her budget.

Ms Andersson said she would work with a budget supported by the opposition Moderates, Christian Democrats and Sweden Democrats if necessary.

The next election is in September 2022, with the Social Democrats hovering close to their lowest-ever approval ratings in the polls.

Ms Andersson has a tenuous hold on the Swedish parliament and may struggle to pass a budget. AFP
Ms Andersson has a tenuous hold on the Swedish parliament and may struggle to pass a budget. AFP

What is the reaction to her appointment?

There was much praise for Ms Andersson’s historic achievement in becoming the first female leader of Sweden.

“If women are only allowed to vote but are never elected to the highest office, democracy is not complete,” said independent MP Amineh Kakabaveh.

EU home affairs commissioner Ylva Johansson, a former Swedish minister, said “a glass ceiling has cracked and Sweden has a new excellent and strong PM”.

But Ulf Kristersson, the leader of the opposition Moderates, said the Social Democrats and their allies were desperately clinging to power.

“They can't get their policies adopted but they want to govern at any price. This is so desperate,” he told Swedish media.

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What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
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(Portugal win 3-1 on penalties)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: November 24, 2021, 2:46 PM