Sweden will this week unveil a stimulus budget for next year, underlining its status as one of the few European countries able to resist austerity as storm clouds gather over the Nordic country’s economy.
Thursday’s budget will have a long-term focus with measures on infrastructure, research and education, allowing the government before elections in 2014 to go for more voter-friendly proposals such as income tax cuts.
The centrepiece this week is likely to be a reduction in the corporate tax rate from 26.3 per cent to 22 per cent, which pointedly brings it below the EU average.
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