Skys the limit
The week's news at a glance.
Stockholm
Sweden, which already has the steepest taxes in Europe, may have to raise taxes even higher, the prime minister said this week. Goran Persson said that such a move could be necessary to protect the “Swedish model” of the welfare state. Swedish baby boomers will soon be retiring in huge numbers, Persson noted. If taxes are not raised, he said, boomers will not be able to count on free, high-quality health care into their declining years. Many Swedish economists panned the proposal, arguing that higher taxes would drive away businesses and discourage people from seeking work. The government countered that despite high taxes, Sweden’s economy has grown faster than the E.U. average for the past 10 years. Sweden’s tax burden is more than 50 percent of gross domestic product.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Israel's plan for confining all Palestinians in 'humanitarian city'
The Explainer Defence minister wants to establish zone in Gaza for displaced people – which they would not be allowed to leave – prompting accusations of war crimes
-
Secluded retreats for aspiring writers
The Week Recommends These tranquil hideaways are the perfect place to put pen to paper
-
The Velvet Sundown: viral band that doesn't actually exist
In the Spotlight These AI-generated rock hits are brought to listeners by… no one