- You can reduce the size of the debt in relation to GDP by simply doing nothing but letting the economy grow. And as the economy grows, the size of debt decreases in relation to GDP, says Harry Flam.

It sounds like we're getting a free lunch?

- Yes, when you have as low interest rates as we have today and a growth rate that is higher than interest rates, then it actually becomes a free lunch. 

The 1990s crisis is haunting 

Many remember the 1990s crisis with horror when Sweden's public debt rose to almost 80 percent of GDP and debt restructuring became a painful story for many. Now the state again lends large sums of money to cover the deficit in the state finances. 

- My guess is that we will end up in a public sector deficit of 10 to 12 percent of GDP, roughly as much as 1993, which is the worst year of our 1990s crisis, says economist Lars Calmfors. 

Most assessors believe in a large deficit not only this year but also next year, which means that the state needs to borrow a lot of money. Sweden has a relatively low debt ratio, 35 per cent of GDP, compared with the average in the Euro countries of 84 per cent.  

- At the end of next year, we may very well end up at 60 percent of GDP, says Lars Calmfors. 

Jobs go before debt 

The government has several scenarios for the debt ratio in the spring bill, the highest of which is 53 per cent of GDP. Harry Flam makes a similar assessment.

Nevertheless, like most experts, he is not particularly concerned about the increase in indebtedness. It is more important to save the jobs according to Flam and not just for the sake of government finances. 

- Those who are new to the labor market will be much tougher. The research shows that a person who is unemployed for a year loses not only income, but it also affects the future professional life, says Harry Flam. 

Finance Minister Magdalena Andersson (S), whose mantra has been to save in the barns, now also thinks that Sweden can borrow. Albeit with some reservation. 

- We are making great efforts now, but my assessment is that we will succeed. But it is clear that we in Sweden who have their own currency are a little more vulnerable than larger countries, so of course we have to keep an eye on the debt, says Magdalena Andersson (S).