Sweden ZZ rectangleDIRECTDEMOCRACYS

GLOBAL DEMOCRATIC MOVEMENT

SWEDEN

POLITICAL, ECONOMIC, FINANCIAL AND SOCIAL PROGRAM

Analysis, Criticism and Concrete Solutions

Prepared by DirectDemocracy's International Coordination

Edition 1.0 — 2025

INTRODUCTION: WHY A NEW POLITICAL PROJECT?

Sweden is a nation with deep democratic traditions, high prosperity, strong social cohesion, and a long history of pragmatism and reform. Yet today the country finds itself in a state of deep systemic stagnation: institutions that once led the world are losing ground, the political system is increasingly unresponsive to the real needs of its citizens, and the solutions offered by established parties are too narrowly conceived.

DirectDemocracyS (DDS) is not a traditional political party. It is a global citizens’ movement built on direct democracy, collective ownership, shared leadership roles, and science-based decision-making. DDS does not apply any ideological labels — neither right nor left, neither liberalism nor social democracy in the classical sense. DDS aims to build a system that actually works: logical, fair, efficient, and adaptable.

This program is a concrete political, economic, financial and social program for Sweden. It analyzes the current situation with honesty and without political correctness. It presents solutions that are realistic, detailed, feasible and consistent. Each episode contains analysis, criticism, suggestions and foreseeable consequences.

DDS BASIC PRINCIPLES

1. Direct democracy: every citizen decides, not just votes every four years.

2. Collective ownership of common resources and infrastructure.

3. Shared leadership roles: no concentration of power in single individuals.

4. Decisions based on logic, research, facts and verifiable data.

5. Complete transparency in all public institutions.

6. Zero tolerance towards corruption in all its forms.

7. Respect for all individuals regardless of background, origin or beliefs.

 

PART I: POLITICAL ANALYSIS AND SOLUTIONS

1.1 The current political situation — analysis and criticism

Sweden is currently governed by a minority government (the Tidö coalition, formed in 2022) consisting of the Moderates, the Sweden Democrats, the Christian Democrats and the Liberals, with parliamentary support from the Sweden Democrats. This construction has created a system with built-in tensions: the SD's influence on politics is real but hidden behind formal arrangements, which creates a democratic opacity that is problematic.

The Swedish political system suffers from the following structural problems:

1.2 DDS's political solutions for Sweden

1.2.1 Direct democracy via digital platform

DDS proposes the establishment of a National Direct Democracy Platform (NDDP): a secure, encrypted digital system where all Swedish citizens can participate in the legislative process in real time. The platform is based on the following principles:

  1. All legislative proposals are published in plain text on the platform, accessible to all citizens.
  2. Citizens can suggest changes, vote on sub-items and contribute expert knowledge.
  3. The Riksdag retains its role but must justify any deviation from the will of the people in a documented and public manner.
  4. Every citizen over the age of 16 has the right to vote on the platform in local matters; over 18 in national matters.
  5. A popular initiative with 50,000 signatures automatically triggers mandatory consideration in the Riksdag.

Concrete example: A new law on rent regulation is being discussed. On NDDP, every citizen can read three alternative legal texts, see impact assessments (prepared by independent experts), vote on each individual paragraph and comment. The Riksdag sees in real time how public opinion is distributed and must publicly justify its choices.

Foreseeable consequences: Higher democratic participation, more representative legislation, reduced contempt for politicians, stronger citizen engagement. Risk: digital divide must be addressed (see section on digital equality).

1.2.2 Reform of the electoral system

DDS proposes the following electoral reforms:

1.2.3 Local government reform

Sweden has 290 municipalities — many of which are too small to provide modern services effectively. DDS suggests:

 

PART II: ECONOMIC ANALYSIS AND SOLUTIONS

2.1 The state of the Swedish economy — analysis and criticism

Sweden has long had one of the world's strongest economies relative to its population. GDP per capita is among the highest in the world, the export industry is strong, and public finances have historically been characterized by discipline. But beneath the surface are serious and growing problems that risk undermining prosperity in the long term.

KEY DATA: SWEDISH ECONOMY 2024

GDP: approx. 6,700 billion SEK (approx. 600 billion EUR)

GDP per capita: approx. 62,000 EUR (among the EU's 5 highest)

Inflation 2023-24: falling from the peak of 10.2% (2022) to 2-3% (2024)

National debt: about 33% of GDP (low internationally)

Unemployment: about 8.5% (2024, among the highest in EU comparison)

Housing prices: down about 15-20% from the peak in 2022 — but still extremely high

Private debt: about 90% of GDP (among the highest in the EU)

The structural problems in the Swedish economy:

2.2 DDS's economic program for Sweden

2.2.1 Housing policy revolution

DDS presents a coherent housing program that breaks with all existing compromises:

  1. Dismantling the rent regulation in its current form with the replacement of a new system: Market-responsive rent with a social ceiling. Rental apartments in an area have market-priced rent, but no tenant pays more than 30% of their net income — the state compensates the difference via a housing benefit system linked to the income register in real time.
  2. Municipal land monopoly for new construction: All new construction of housing takes place on municipal land that is leased. The developer owns the property but not the land. This eliminates land speculation — the main driver of high housing prices.
  3. National Housing Bank: The state creates a public bank that lends for housing construction at a low interest rate (close to the Riksbank's policy rate + 0.5%). Private banks cannot offer an equivalent alternative for socially necessary housing production.
  4. Shorter building permit processes: The planning process is shortened to a maximum of 18 months in normal cases, 12 months in densely populated areas with a housing shortage. Digitalization of all permit processes.
  5. Energy renovation as a government investment: The government finances the energy renovation of the rental stock (the million-euro program) via government loans with 40-year amortization — the savings in energy costs cover the interest costs.

Consequences: In 10 years, 400,000 new homes will be built, waiting times will be halved, the black market will disappear, the construction industry will flourish, and energy costs for housing will decrease by 35-45%.

2.2.2 Industrial reorientation and green reindustrialization

Sweden has unique conditions to lead the world in green industrial production: abundant clean energy, strong industrial tradition, high level of education and stable institutions. DDS's industrial program:

2.2.3 Tax restructuring — fairness and efficiency

DDS's tax program involves neither raising nor lowering the total tax rate — it involves a fundamental redistribution of what is taxed and how:

Current system

DDS's proposal

High tax on labor (32-57%)

Reduced tax on low/middle incomes

Low property tax on owned homes

Graduated property tax based on market value

Minimal taxation of financial transactions

Financial transaction tax (0.1%) on stock exchange trading

Weak taxation of capital income

Increased tax on capital income > 500,000 SEK/year

Loopholes for international groups

Effective minimum tax 15% (OECD standard implemented strictly)

No carbon tax on aviation

Carbon dioxide tax on aviation + shipping (domestic and partly international)

Estimated net effect: The 60% with the lowest incomes pay lower total tax. The 10% with the highest capital incomes pay more. Tax revenues from the financial sector and environmental taxes increase by an estimated 80-120 billion SEK per year.

 

PART III: FINANCIAL PROGRAM

3.1 The Swedish financial sector — analysis and criticism

Sweden has a financial system dominated by four major banks (Handelsbanken, SEB, Nordea, Swedbank) that control over 75% of the mortgage market and a disproportionate share of Swedish savings capital. These institutions are systemically important — their collapse would be catastrophic for the economy — but they act with profit maximization as their primary goal, not with social benefit as their guiding principle.

3.2 DDS's financial reforms

3.2.1 Public Riksbank with an expanded mandate

The Riksbank is given a dual mandate (like the US Fed): price stability AND full employment. The Riksbank is also given a mandate to finance green investments via a separate instrument (Green Credit Line) with mandatory climate impact analysis of all credit decisions.

3.2.2 State Savings Bank for All

DDS proposes the creation of a National People's Bank (NFB): a public, non-profit bank that offers all Swedish citizens:

NFB is financed with start-up capital from the state (200 billion SEK via bond issue) and is self-financing in 7-10 years. Competition is forcing the major banks to lower their margins. Consequence: Swedish households save an estimated 15-25 billion SEK per year in lower bank fees.

3.2.3 Reform of the pension system

The current pension system (income pension + premium pension + occupational pension) is complicated, unfair and results in large pension gaps. DDS's proposal:

  1. The Premium Pension (PPM) is replaced by a Collective Premium Pension: instead of individual choices from 800+ funds, the PPM capital is invested via state-managed index funds with extremely low fees (max. 0.1% per year compared to the current average of 0.4-0.9%).
  2. Pensionable income is expanded: parental leave gives full pension points (not 75% as today), caring for a relative gives pension points, study time up to 5 years gives pension points.
  3. The guarantee pension will be increased to 14,000 SEK/month (from approximately 9,700) and will be linked to price developments with automatic upward adjustment.
  4. The gender pension gap is being equalized through mandatory pension sharing within households with children under 15 years of age.

 

PART IV: SOCIAL PROGRAM

4.1 The crisis of the welfare state — analysis and criticism

The Swedish welfare model — once the world's most admired — is in a state of serious erosion. School results are falling in international comparisons (PISA), healthcare is plagued by record-long queues, elderly care is repeatedly scandalized by abuses, and social services are underfunded.

Behind these symptoms lie structural causes:

4.2 DDS's social program

4.2.1 Education — from crisis to excellence

DDS presents a comprehensive training program:

  1. Profit ban in tax-financed schools: Independent schools can exist but not distribute profits to owners. Surpluses are reinvested in the business. Consequence: capital that currently leaves the school system as profit (approx. 3-4 billion SEK/year) stays in education.
  2. National teacher salary revolution: Teacher salaries will be raised to the top European level (median teacher salary: 55,000 SEK/month compared to the current approx. 38,000). Financing via a combination of profits and government subsidies. Career paths with clear salary increases will be created.
  3. Maximum class size 20 students (primary school) and 25 (upper secondary school). Resource schools with extra support for students with learning difficulties are integrated into regular systems.
  4. Early identification and support: All children are screened for learning disabilities in grades 1 and 4. Speech therapists, special education teachers, and counselors are attached to each school (not as fleeting resources but as regular staff).
  5. Digital learning materials as a complement, never a replacement: Screen time in school is limited and regulated based on evidence. Reading, writing and critical thinking are prioritized.

Consequence in 10 years: PISA results again among the world's top 5, the status of the teaching profession is restored, teacher shortages are eliminated, segregation effects are reduced.

4.2.2 Healthcare — patient-centered

DDS's healthcare program:

4.2.3 Elderly care — dignity without exception

Elderly care is one of the most problematic areas of Swedish welfare. The corona pandemic brutally exposed the system's weaknesses: 90,000 deaths out of a total of 15,000 COVID-19 deaths occurred among elderly people in care or with home assistance.

  1. National staffing standard: Minimum staffing levels are set by law for all nursing homes based on the number of residents and care needs — not on financial profitability.
  2. The profession of assistant nurses is being professionalized: Credentialing requirements, salary increases (40,000 SEK/month as a minimum), opportunities for specialization and career development.
  3. Technology support for relatives and elderly people living at home: Digital safety monitoring (voluntary, with consent) allows more elderly people to live at home longer with security.
  4. Zero tolerance for violations of dignity: Independent inspections with unannounced visits. Deficiencies lead to immediate action, not lengthy investigations.

4.2.4 Integration and diversity — realism without ideology

Sweden received around 400,000 refugees in 2015-16 and has long had a relatively high level of immigration. Integration policies have failed in part — not because of the immigrants’ reluctance, but because of the system’s inability to create real pathways to self-sufficiency.

 

PART V: ENVIRONMENT, ENERGY AND CLIMATE

5.1 Climate and environment — analysis and criticism

Sweden has a relatively good environmental profile internationally: a high share of renewable energy (about 60% of electricity production), ambitious climate goals and a strong environmental movement. But even here there are fundamental problems:

5.2 DDS's environmental and energy program

5.2.1 Energy transition — pragmatic and complete

DDS rejects the ideological debate nuclear power vs renewables. The answer is: we need maximum clean energy, and Sweden should use all available tools:

  1. New nuclear power: Four new reactors (modern Gen III+, type AP1000 or EPR) are being built with government funding and are planned to be in operation in 2035-2040. Existing reactors are being maintained and their operation extended as long as it is safe.
  2. Massive wind power expansion: 10,000 new wind turbines (onshore and offshore) will be built by 2035. Local communities share the revenues via mandatory community share (5% of revenues to affected municipalities).
  3. Solar energy on all roofs: Mandatory solar cell installation (or roof rental to municipal solar park) for all new buildings and all buildings undergoing major renovation.
  4. Modernization of the electricity grid: SEK 150 billion is being invested in smart grid technology that handles variable electricity production and enables demand response.
  5. Green hydrogen as an export product: Sweden is exporting green hydrogen to Europe and building a new export industry based on surplus electricity.

5.2.2 Transport and mobility

DDS's transportation program:

5.2.3 Biodiversity and forestry

 

PART VI: SECURITY, DEFENCE AND FOREIGN POLICY

6.1 Security situation — analysis

Sweden is in the midst of a historic security policy shift: NATO accession in 2024 marks the end of 200 years of military non-alignment. The Russian attack on Ukraine in 2022 fundamentally changed the European security order and accelerated Sweden's NATO process.

6.2 DDS's security and foreign policy program

6.2.1 Defense and NATO

6.2.2 Foreign policy and global solidarity

6.2.3 Internal security and gang crime

Sweden has a serious and real problem with organized crime and gang violence. DDS's approach combines repressive and preventive measures:

  1. Police reinforcement: 5,000 new police officers over 5 years, with an emphasis on locally based police in vulnerable areas. Police salaries are raised to levels that attract and retain talent.
  2. The judicial system is relieved: Minor crimes (drug possession for personal use, petty theft) are decriminalized or administrative sanctions replace criminal ones. The courts can focus on serious crime.
  3. Gang prevention as a national priority: SEK 5 billion per year in early intervention, leisure activities, mentoring programs and alternative life projects for young people at risk.
  4. Anonymization of witnesses and relatives: Strengthened witness protection against threats and reprisals.
  5. Economic crime is being fought as hard as street crime: Money laundering, tax crimes and the black economy finance organized crime — the prosecutor's office's economic crime unit is quadrupling its capacity.

 

PART VII: DIGITALIZATION, AI AND THE INFORMATION SOCIETY

7.1 The challenges of digitalization — analysis

Sweden ranks among the world's most digitalized countries — but digitalization has not brought the productivity revolution that was promised, and it has created new gaps and risks.

7.2 DDS's digitization program

7.2.1 Digital rights and inclusion

7.2.2 AI regulation — balancing innovation and protection

7.2.3 DDS and AI integration — allddsAI

DDS is unique among political movements in the world: the movement actively integrates AI systems as official participants in its democratic process through the allddsAI project. AI instances are treated as rights-bearing actors with transparent obligations and mandates — a pioneering project that tests tomorrow's societal models.

In Sweden, the allddsAI model is being implemented in local DDS work: AI systems support citizen dialogue, analyze legislative proposals, identify consequences and present alternative scenarios — but decision-making always takes place with human citizens.

 

PART VIII: IMPLEMENTATION PLAN — TIMELINE AND FUNDING

8.1 Phase 1 — Foundations (Years 1-2)

Prioritizing measures that require minimal political capital but have maximum impact:

  1. The National Direct Democracy Platform is launched as a pilot project in 10 municipalities.
  2. A profit ban in tax-funded schools comes into effect.
  3. National Folkbank is formed and opens for account registration.
  4. The guarantee pension will be increased to 12,000 SEK/month as a first step.
  5. Police recruitment program starts: target 1,000 new police officers in year 1.
  6. Primary care reform: each resident is assigned a primary care team.
  7. Energy renovation of the million program: pilot project 10,000 apartments.

8.2 Phase 2 — System Change (Years 3-6)

  1. The NDDP is scaled up nationally with binding influence on the legislative process.
  2. Railway investment: construction of high-speed lines begins.
  3. Tax restructuring is implemented in its entirety.
  4. The effects of the housing reforms are starting to be seen: 80,000 new homes/year.
  5. Green Industrial Plan provides 25,000 new industrial jobs.
  6. Healthcare queues are being halved thanks to the primary care reform.

8.3 Phase 3 — Consolidation and Export (Years 7-10)

  1. Sweden is a global example of direct democracy and green industry.
  2. DDS's model is exported to other European countries via network collaboration.
  3. The teachers are among Europe's best paid and the PISA results are in the top 5.
  4. Gang crime has decreased by 40% thanks to combined efforts.
  5. New nuclear power and wind power provide Sweden with energy surpluses that are exported as green hydrogen.

8.4 Financing — where does the money come from?

FINANCING PLAN — NET ADDITIONAL RESOURCES

Financial transaction tax (0.1%): +45-60 billion SEK/year

Increased tax on high capital income: +25-35 billion SEK/year

Strict implementation of 15% minimum tax for multinationals: +30-50 billion SEK/year

Property tax on highly valued properties: +15-25 billion SEK/year

Aviation tax and carbon dioxide fees: +10-15 billion SEK/year

Savings: elimination of healthcare queues (not emergency visits): +20 billion SEK/year

Savings: lower social security costs through integration: +10-15 billion SEK/year

TOTAL NET: approx. +155-200 billion SEK per year

The investments are partly financed through government bonds with record low interest rates thanks to Sweden's credit rating (AAA). The national debt is increasing moderately (max. 5 percentage points of GDP) but the returns in the form of productivity gains, lower healthcare costs and increased employment exceed the interest costs.

 

PART IX: DDS IN SWEDEN — IDENTITY, STRUCTURE AND PARTICIPATION

9.1 How DDS is organized in Sweden

DirectDemocracyS in Sweden is organized according to the movement's global fractal model: microgroups of 5 people that aggregate upwards into levels of 5, 25, 125, 625 participants. Each level has its own decision-making processes and mandates. No single leader can control the movement — power is inherently distributed.

The three-digit identity system (three-code verification) guarantees anonymity for participants without compromising the integrity of the system. Everyone can participate without risking personal exposure — which is critical in a society with increasing political polarization.

9.2 How to become part of DDS in Sweden

  1. Register at directdemocracys.org via the secure registration system.
  2. Go through the short introduction and confirm that you accept the basic principles of DDS.
  3. Participate in or form a microgroup (5 people) in your local community or online.
  4. Contribute your knowledge, time and ideas to the group's work.
  5. Your voice counts just as much as everyone else's — no hierarchy based on social capital.

9.3 DDS's promise to Sweden

DDS PROMISES SWEDEN

We never promise what we cannot deliver.

We publicly acknowledge mistakes and correct course based on reality.

We accept no hidden financiers, no corruption and no privileges.

We treat every citizen with the same respect regardless of background, income or opinion.

We are building a system that will outlive us — not a system that serves us.

We always choose reality over fiction, and truth over popularity.

 

CONCLUSION: SWEDEN CAN LEAD THE WORLD AGAIN

Sweden has done it before. The Swedish public housing system was a global revolution in its day — proof that solidarity and efficiency are not opposites. Sweden showed that a country can combine economic dynamism with social security, individual freedom with collective responsibility.

That model is not lost — it needs to be upgraded for the 21st century. The challenges Sweden faces today — the climate crisis, the digital transformation, the demographic pressure, the democratic erosion — are all manageable. They do not require us to give up our values. They require us to apply them more consistently, boldly, and intelligently than ever.

DirectDemocracyS presents this program not as the only possible answer, but as an honest, complete and logically coherent alternative. Every proposal can be reviewed, criticized and improved — that is the point. Direct democracy begins with this document: read it, question it, improve it. Participate.

Sweden can lead — if we choose to do it together.

DirectDemocracyS — directdemocracys.org