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Posts Tagged ‘Sweden’

EU governments back Barroso for second term

• Confirmation of president pushed back to September
• Greens led by Cohn-Bendit leading No campaign

The 27 governments of the European Union today threw their full weight behind a second five-year term for José Manuel Barroso as president of the European commission, challenging the new European parliament to rubber-stamp their choice. The parliament meets next week in Strasbourg, but government leaders’ hopes that Barroso would be instantly enthroned have been defeated by a backlash from the centre-left. Fredrik Reinfeldt, the Swedish prime minister who took over the rotating chairmanship of the EU last week, said today that the full endorsement of Barroso by 27 governments should see the former Portuguese prime minister confirmed as soon as possible.

But Reinfeldt has already suffered one defeat in his first week as EU president, seeing the parliament vote pushed back by two months until September.

“The council [of government leaders] has taken its responsibility for completing the selection of a commission president. I hope that we in Europe can move forward as soon as possible to resolve the important issues we have before us, such as the climate and financial crises,” said Reinfeldt.

He fears a leadership vacuum as Europe wrestles with economic meltdown, rising unemployment, and the run-up to the crucial global climate change negotiations in Copenhagen in December.

But the social democrats and the Greens in the European parliament have forced a delay in the vote on Barroso who is strongly supported by Britain, both Labour and Conservative, by the centre-left governments of Portugal and Spain, and by the centre-right across the EU.

Barroso has been lobbying strenuously for a quick reappointment. He has been most worried about the ambivalent support from President Nicolas Sarkozy of France.The Greens in the parliament, led by Danny Cohn-Bendit, are spearheading a No to Barroso campaign, arguing he has displayed feeble leadership. The second biggest caucus, the social democrats, have led the drive to delay the vote in an attempt to extract maximum concessions from Barroso over policies and the shape of his new commission. The social democrats’ leader, Martin Schulz, is believed to be demanding that a quarter of commission portfolios go to social democrats, a tall order that Barroso will struggle to deliver on.

Commission officials admit that Barroso is worried that his second term could fall victim to personnel horsetrading among member states following the Irish vote.

Under the Lisbon treaty the EU is to get its first sitting president and a more powerful foreign policy chief. If the Irish vote yes to Lisbon, as widely expected, the new plum posts will be up for grabs and the head of the commission post could be thrown into the mix, jeopardising Barroso’s chances.

The tussle over Barroso is part of a power struggle between the European council of national governments, traditionally the strongest power in the EU, and the parliament, which is gaining in clout and is seeking to challenge the supremacy of the governments.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


Ikea founder warns: we must cut jobs

Ingvar Kamprad tells Swedish newspaper that even the 5,000 redundancies the furniture retailer has already made will not be enough

The founder of Ikea has warned that the Swedish retailer must lose more jobs after the recession squeezed sales of flat-pack furniture.

Ingvar Kamprad believes that the 5,000 jobs that the company has already shed will not be enough to deal with the tougher economic climate.

“We need to decrease the number of staff further, particularly within manufacturing and logistics,” Kamprad told the Swedish newspaper Dagens Industri. “It’s about adjusting to sales being a lot less and becoming more efficient.”

The Swedish billionaire revealed that sales are running at about 7% below its target, adding that the company can no longer match its rapid expansion of recent times, when up to 20 new stores would open every year. “The forecast is that our margins and profits are decreasing substantially this year. This is proof that we have been too negligent in how we take care of our existing stores.

“Actually, I have long tried to warn about our excessive focus on expansion, and now the board has also decided to hit the brakes,” Kamprad said.

A spokeswoman confirmed that there may be further job cuts at Ikea, but insisted that the company was also hiring at its new stores. She added that the company was still committed to opening between 10 and 15 stores a year.

Kamprad founded Ikea in 1943 and still advises the company, which posted record global sales of €21.2bn (£18bn) in the last financial year.

But its expansion hit a roadblock last month when it suspended its investment in Russia, which had been a major target for Ikea this decade. It blamed the “unpredictability of administrative processes”.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


Ikea founder warns: we must cut jobs

Ingvar Kamprad tells Swedish newspaper that even the 5,000 redundancies the furniture retailer has already made will not be enough

The founder of Ikea has warned that the Swedish retailer must cut more staff after finding that sales of flat-pack furniture were not immune from the recession.

Ingvar Kamprad believes that the 5,000 jobs that Ikea has already shed from its workforce will not be enough to bring the company in line with the tougher economic climate.

“We need to decrease the number of staff further, particularly within manufacturing and logistics,” Kamprad told Swedish newspaper Daily Industry. “It’s both about adjusting to sales being a lot less than budgeted, and about becoming more efficient.”

The Swedish billionaire revealed that sales at Ikea are currently running around 7% below its target, adding that the company can no longer match its rapid expansion of recent times, when up to 20 new stores would open every year.

“The forecast is that our margins and profits are decreasing substantially this year. This is proof that we have been too negligent in how we take care of our existing stores. Actually, I have long tried to warn about our excessive focus on expansion, and now the board has also decided to hit the brakes,” Kamprad said.

A spokeswoman confirmed that there may be further job cuts at Ikea, but insisted that the company was also hiring at its new stores. She added that the company was still committed to opening between 10 and 15 stores a year, despite the recession.

“Turnover has decreased because of the current economic situation. We have to look at our costs, but we are still doing very well, generating good profits – but we had counted on doing better than we are doing today,” she said.

Kamprad founded Ikea in 1943 and still advises the company, which posted record global sales of €21.2bn (£18bn) in the last financial year.

But its seemingly relentless expansion hit a roadblock last month when it suspended its investment in Russia, which had been a major target for Ikea this decade. It blamed the “unpredictability of administrative processes” in the country.

Analysts said the move showed that Ikea had lost patience with being asked for bribes by corrupt Russian officials. They pointed out that a new Ikea store in the city of Samara was completed a year ago but has still not been given permission to open until the firm has paid to fix alleged “deficiencies” with the building.

Kamprad said he supported the decision to postpone building up to 30 more stores in Russia. “Hopefully we can restart the offensive later on, and in the long term I’m convinced that Russia will be a good market for Ikea,” says Kamprad.

The popularity of Ikea has prompted a Swedish museum to host an exhibit looking back at its history, including early tables, chairs and advertising material.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


G8 must avoid man-made disaster

Europe leads on climate change but must be more ambitious by expanding carbon trading and clean development mechanism reform

The symbolic meeting place of the G8 in L’Aquila is a signal of the world’s solidarity with Italy after the terrible earthquake earlier this year. It is also a unique chance to prevent another disaster – this one man-made. Climate change is happening and it is happening fast. When G8 leaders meet in L’Aquila, a global, wide-ranging and ambitious post 2012 agreement in Copenhagen must be their top priority. An agreement which by respecting science brings real global emission reductions.

Such a deal in Copenhagen will demonstrate that we are serious about tackling the climate challenge. This will stimulate the necessary investments to create a green economy, creating new jobs and driving growth over the next two or three decades. Those who understand this today will be the winners of tomorrow.

The post-crisis economy will be very different from its predecessor. And we will not get the same chance twice. That is why the measures to tackle the economic crisis and fight climate change must be done at the same time. We know that there is ample room for improvement in the energy efficiency of businesses, consumers and the government. In fact, according to the International Energy Agency, 54% of the abatement measures needed to keep to a 2C global warming target could be reached through the introduction of existing energy efficient technologies.

The economic crisis can thus be a trigger for smart climate solutions that also save money and provide better energy security.

We go to L’Aquila with a number of key objectives. We will insist on the need to respect the 2C target. We will reiterate the need for a global goal of achieving at least a 50% reduction of global emissions by 2050. In addition, we will ask all developed countries to reduce emissions by at least 80% in the same period and underpin these efforts through robust and comparable mid-term reductions. A key part of the solution will be financing of the fight against climate change: the EU will come forward with proposals in good time on financing, and is of course ready to play its full part.

Indeed, as the largest contributors to past emissions, we of course agree that the developed countries have a special responsibility to take the lead. But this is not going to be enough. The emerging economies, for example, where growth in emissions is surging, must also join in the effort. We must all do our part, in line with the principle of common but differentiated responsibilities and respective capabilities.

The European Union and its member states are proud of the commitments we have made, to reduce emissions by 20% by 2020, and are ready to go further and reduce them by 30% in the context of an ambitious Copenhagen agreement. We are ready to share our experience, such as on emissions trading, with others. We would like to see an OECD wide emissions trading system by 2015. We would also like to reform and develop the clean development mechanism and thereby bring new investment and new technology to the poorest people on the planet.

We are determined to bring European leadership to bear in facilitating an agreement at Copenhagen of which we can all be proud. There is no alternative. If we fail now, we are breaching the contract that all parents must make with their children: to leave them a better world. Let us turn climate change into a global opportunity in L’Aquila.

• Fredrik Reinfeldt is the prime minister of Sweden, which currently holds the EU presidency. José Manuel Barroso is president of the European commission.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


G8 must avoid man-made disaster

Europe leads on climate change but must be more ambitious by expanding carbon trading and clean development mechanism reform

The symbolic meeting place of the G8 in L’Aquila is a signal of the world’s solidarity with Italy after the terrible earthquake earlier this year. It is also a unique chance to prevent another disaster – this one man-made. Climate change is happening and it is happening fast. When G8 leaders meet in L’Aquila, a global, wide-ranging and ambitious post 2012 agreement in Copenhagen must be their top priority. An agreement which by respecting science brings real global emission reductions.

Such a deal in Copenhagen will demonstrate that we are serious about tackling the climate challenge. This will stimulate the necessary investments to create a green economy, creating new jobs and driving growth over the next two or three decades. Those who understand this today will be the winners of tomorrow.

The post-crisis economy will be very different from its predecessor. And we will not get the same chance twice. That is why the measures to tackle the economic crisis and fight climate change must be done at the same time. We know that there is ample room for improvement in the energy efficiency of businesses, consumers and the government. In fact, according to the International Energy Agency, 54% of the abatement measures needed to keep to a 2C global warming target could be reached through the introduction of existing energy efficient technologies.

The economic crisis can thus be a trigger for smart climate solutions that also save money and provide better energy security.

We go to L’Aquila with a number of key objectives. We will insist on the need to respect the 2C target. We will reiterate the need for a global goal of achieving at least a 50% reduction of global emissions by 2050. In addition, we will ask all developed countries to reduce emissions by at least 80% in the same period and underpin these efforts through robust and comparable mid-term reductions. A key part of the solution will be financing of the fight against climate change: the EU will come forward with proposals in good time on financing, and is of course ready to play its full part.

Indeed, as the largest contributors to past emissions, we of course agree that the developed countries have a special responsibility to take the lead. But this is not going to be enough. The emerging economies, for example, where growth in emissions is surging, must also join in the effort. We must all do our part, in line with the principle of common but differentiated responsibilities and respective capabilities.

The European Union and its member states are proud of the commitments we have made, to reduce emissions by 20% by 2020, and are ready to go further and reduce them by 30% in the context of an ambitious Copenhagen agreement. We are ready to share our experience, such as on emissions trading, with others. We would like to see an OECD wide emissions trading system by 2015. We would also like to reform and develop the clean development mechanism and thereby bring new investment and new technology to the poorest people on the planet.

We are determined to bring European leadership to bear in facilitating an agreement at Copenhagen of which we can all be proud. There is no alternative. If we fail now, we are breaching the contract that all parents must make with their children: to leave them a better world. Let us turn climate change into a global opportunity in L’Aquila.

• Fredrik Reinfeldt is the prime minister of Sweden, which currently holds the EU presidency. José Manuel Barroso is president of the European commission.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


Filesharing site Pirate Bay bought for £4.7m

Global Gaming Factory X buys file-sharing site The Pirate Bay, promising that copyright holders will get paid

The Swedish software firm, Global Gaming Factory X, has bought the file-sharing site The Pirate Bay for almost £4.7m.

GCF CEO Hans Pandeya said that to continue, The Pirate Bay would have to develop a new business model. “We would like to introduce models which entail that content providers and copyright owners get paid.”

In April, the founders of The Pirate Bay were sentenced to one year in jail and fined £2.4m.

They confirmed the purchase on their site and said:

It’s time to invite more people into the project, in a way that is secure and safe for everybody. We need that, or the site will die. And letting TPB die is the last thing that is allowed to happen!

Referring to the proposed changes, the founders said that if the new owners “screw around with the site, nobody will keep using it”.

Global Gaming Factory also acquired Peerialism, a “next-generation file-sharing” company which started with research at the KTH Royal
Institute of Technology and SICS, Swedish Institute of Computer Science.

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Death of the super model

As Sweden takes over the presidency of the EU, the sad truth is that its famed social state is failing

The Swedes are coming. As Europe lurches to the right amid financial and climate meltdown, a horde of cool-headed Nordic warriors are riding to the rescue. Sweden’s EU presidency from 1 July will be greeted as a breath of fresh air after the Czech leadership, what with the latter’s antics on climate change and arousal chez Berlusconi. What the EU needs is a whiff of sense and reason. And who better to provide it than the social-minded, climate-conscious Swedes?

Sweden still sets hearts racing across Europe. The “Swedish model” might bring up thoughts of a nubile blonde rather than a strong social state, but it is in the latter incarnation that my home country stirs the passions of left-leaning Europeans. Whatever Sweden does must be right, or so reason progressive politicians and Guardian journalists – not to mention scores of Swedes. But beyond this blue-eyed vision lurks a darker reality. Sweden’s conservative coalition government has stood still as the financial crisis has engulfed the country. Jobs, social services and healthcare are eroding. The Sweden Democrats – the equivalent of the BNP – are on the rise. The social state is failing. The Swedish dream is no more.

Swedes were roused from this dream with the 1986 assassination of prime minister Olof Palme. Palme might have left behind “a country where no one was poor and no one had room for optimism” as Andrew Brown puts it, but it was Sweden’s homemade financial meltdown of the 1990s that finally killed off the dream. Poverty was added to the pessimism. Savage cuts hit schools, unemployment rocketed, the krona sank – leaving the social system in a disarray from which it has not recovered. The conservative government at the time has lately been praised worldwide for its handling of the crisis. Actually the bankers were rewarded, not punished, while the rest of the country is still reeling from the cuts, selloffs and dashed dreams the crisis provoked. But the idea of a well-oiled Swedish model insulated from the shockwaves of capitalism runs on like a Volvo. The reality, like troubled, Ford-owned Volvo itself, is more globalised and gloomy than that.

Take healthcare. Swedes do not enjoy free public care: it costs to see a GP. That is, if you manage to see one. Queues are long and scandals rack the system. Psychiatric care, the source of many such scandals, has a near-medieval penchant for authoritarianism with few European equivalents. People are locked up for months for not taking medicine, given no therapy, and spat out of the system into despair and destitution. The mentally ill die in wards and in outpatient isolation. And they do not even have charities to turn to because state-run healthcare is supposed to work: this is Sweden, after all.

Those who do enjoy Sweden’s second-rate public services are lucky. Undocumented migrants, who lack a “personal number”, are barred from day-to-day healthcare. Foreigners do not fit easily into a social system built on the postwar notion of the folkhem, or people’s home, whose rightful inhabitants are the native Swedes. Despite the xenophobic right’s lack of electoral success, Sweden is divided between those inside the system and those outside it – including the asylum seekers now deported en masse to Iraq. But migrants should be happy to be here. This is Sweden, after all.

Even being in the system is less rewarding than it was. Unemployment benefits are falling behind those of other countries, and access to social security involves Big Brother-style controls most Europeans would abhor. The state’s iron grip remains even as the care that used to go with it has gone. Swedes might lack Britain’s profusion of CCTVs, but their lives are scrutinised by an armada of bureaucrats. A new law lets authorities tap all phone and internet traffic crossing the borders. Norwegian lawyers have sued over privacy infringement, leaving the prime minister perplexed – because in Sweden, the state is there to help us.

Just as Sweden was in the vanguard of postwar social democracy, it has since the 1990s become a neoliberal experiment. The experiment has failed, though this fails to register in Sweden itself. No waves rock the stagnant pools of officialdom: strikes are almost unheard of and the tabloids are too busy flogging diet tips to bother. The Swedes cannot let go of their belief in the system. Nor can many on the European left.

Admittedly, Sweden might seem a haven of tranquillity compared with other European states. But in the hunt for a humane social model, Sweden no longer provides the blueprint. Europe’s progressives will have to construct something new. But to do that, those who let their minds drift northwards for inspiration first have to wake up: the Swedish dream is over.

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