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Weapons Law and VAT Fraud: Tidö Priorities This Week

Ten government propositions submitted this week reveal the Tidö coalition's strategic focus on law enforcement strengthening, financial crime prevention, and regulatory tightening as the spring parliamentary recess approaches. The package signals continued prioritization of law-and-order measures alongside efforts to modernize administrative systems and enhance government accountability.

Executive Summary

The Kristersson government's legislative agenda this week concentrates heavily on security and economic integrity, with four propositions directly addressing crime prevention and financial transparency. The centerpiece—a comprehensive weapons law reform (HD03141)—represents the Justice Ministry's most ambitious firearms regulation overhaul in a generation, while parallel measures targeting VAT fraud (HD03128) and beneficial ownership disclosure (HD03129) reflect Finance Ministry efforts to combat economic crime.

This legislative bundle demonstrates the coalition's attempt to deliver on core Tidö Agreement commitments around law enforcement and economic governance before the parliamentary recess. However, the inclusion of two National Audit Office response propositions (HD03110, HD03122) suggests continued pressure on government accountability, particularly regarding the 2015 police reform and climate policy evaluation gaps.

Law Enforcement and Security Measures

A New Weapons Law (HD03141)

Document: HD03141 | Ministry: Justice | Submitted: 17 February 2026

Policy Analysis: The government proposes Sweden's first comprehensive weapons law modernization since the 1990s, consolidating 12 existing firearms regulations into a unified legislative framework. The reform responds directly to rising gang violence concerns and aligns with Tidö Agreement commitments to strengthen police enforcement powers.

Key Changes: The legislation introduces stricter licensing requirements for semi-automatic weapons, expands police authority to conduct unannounced inspections of licensed firearms owners, and establishes a centralized digital weapons register. Penalties for illegal weapons possession increase from maximum 2 years to 4 years imprisonment, while organized firearms trafficking becomes eligible for up to 10 years.

Who's Affected: Approximately 580,000 licensed firearms owners face new documentation requirements and inspection protocols. Hunting organizations have raised concerns about administrative burdens, while sports shooting federations broadly support modernization efforts. Police estimate 3,500 illegally held weapons currently in circulation could be targeted under enhanced enforcement provisions.

Political Context: This represents a core Tidö Agreement deliverable, with strong support from Moderates, Christian Democrats, and Sweden Democrats. The Liberal party has expressed reservations about expanded police powers, potentially requiring negotiations. The Social Democrats' response remains critical—their cooperation could enable broader parliamentary backing, but early signals suggest opposition to surveillance expansion elements.

Implementation Timeline: The proposition goes to the Constitutional Committee (KU) for initial review, expected March 2026. Full parliamentary debate likely scheduled for May-June 2026, with enforcement beginning January 2027 if passed. The 18-month transition period allows firearms owners to comply with new registration requirements.

Budget Impact: Initial costs estimated at 280 million SEK for digital register development and police training (2026-2027), with ongoing annual costs of 45 million SEK for system maintenance and enforcement. Finance Ministry proposes funding through justice sector reallocation rather than new appropriations.

Explosives Control Enhancement (HD03123)

Document: HD03123 | Ministry: Defence | Submitted: 17 February 2026

Policy Analysis: Complementing the weapons law reform, this proposition strengthens police and military authority over explosive materials tracking and storage inspections. The measure responds to increased incidents of explosive attacks in urban areas, particularly targeting criminal networks' access to industrial explosives.

Key Changes: Construction companies and mining operations face new reporting requirements for explosive materials inventories. Police gain authority to conduct immediate inspections without advance notice when intelligence suggests diversion risk. Digital tracking systems become mandatory for all explosive materials transport.

Who's Affected: Approximately 1,200 companies holding explosive materials licenses, primarily in construction (840 companies) and mining (180 companies) sectors. Industry associations warn of compliance costs exceeding 50,000 SEK per company for digital tracking infrastructure.

Political Context: Strong cross-party support expected, with all major parties endorsing explosives control tightening following recent Stockholm incidents. Sweden Democrats push for even stricter measures, while Green Party emphasizes need for environmental safety considerations in storage regulations.

Implementation Timeline: Defence Committee review March-April 2026, with enforcement beginning July 2026. Accelerated timeline reflects security urgency, though industry groups request 12-month transition period for digital system implementation.

Financial Crime Prevention

Measures Against VAT Fraud (HD03128)

Document: HD03128 | Ministry: Finance | Submitted: 17 February 2026

Policy Analysis: The Finance Ministry proposes comprehensive VAT fraud prevention measures targeting "carousel fraud" schemes that cost Swedish taxpayers an estimated 3-4 billion SEK annually. The legislation introduces split payment mechanisms for high-risk sectors and expands Tax Authority (Skatteverket) enforcement powers.

Key Changes: Construction and electronics sectors shift to split payment systems where VAT components are paid directly to Skatteverket rather than suppliers. Real-time reporting requirements expand from construction to include vehicle trade and scrap metal industries. Tax Authority gains authority to freeze accounts for 72 hours pending fraud investigations.

Who's Affected: Approximately 42,000 companies in construction, electronics, and vehicle trade sectors face new payment system requirements. Small businesses with annual turnover below 3 million SEK remain exempt, but mid-sized companies (3-50 million SEK turnover) face significant administrative adjustments. Cash flow implications remain contested—business associations warn of liquidity pressures.

Political Context: This represents Finance Minister Elisabeth Svantesson's (M) signature anti-fraud initiative, with strong Moderate and Christian Democrat backing. Sweden Democrats support expanded enforcement but question exemptions for small businesses. Social Democrats tentatively support anti-fraud measures but demand impact assessments on small enterprises. Left Party opposes Tax Authority power expansion without additional oversight mechanisms.

Budget Impact: Projected revenue gain of 1.8-2.3 billion SEK annually once fully implemented (2027 forward). Initial implementation costs of 420 million SEK (2026-2027) for Tax Authority system development and business support programs. Net fiscal benefit exceeds costs within 14 months of full enforcement.

Implementation Timeline: Finance Committee review March-May 2026, parliamentary vote expected June 2026. Phased implementation: construction sector July 2026, electronics January 2027, vehicle trade July 2027. Businesses receive 6-12 months transition support depending on sector.

Beneficial Ownership Register Disclosure (HD03129)

Document: HD03129 | Ministry: Finance | Submitted: 17 February 2026

Policy Analysis: Sweden implements EU's Fifth Anti-Money Laundering Directive by expanding public access to beneficial ownership information for companies and trusts. The measure addresses transparency gaps exploited for money laundering, terrorist financing, and sanctions evasion.

Key Changes: Companies House (Bolagsverket) opens beneficial ownership register to broader public access, with exemptions reduced from current broad categories to narrow "legitimate interest" protections for minors and vulnerable persons. Trusts and foundations previously exempt now face disclosure requirements. Financial intelligence units gain real-time access rather than request-based systems.

Who's Affected: Approximately 1.2 million registered companies, 85,000 trusts, and 15,000 foundations must verify and update beneficial ownership information by January 2027. Wealthy individuals using complex ownership structures face increased transparency requirements—privacy concerns raised by business leaders and wealth management sector.

Political Context: EU compliance mandate reduces domestic political friction, but Sweden Democrats question whether transparency measures adequately protect Swedish business interests versus foreign intelligence gathering. Liberals emphasize privacy protections for legitimate business structures. Social Democrats and Left Party support full transparency, with Green Party pushing for even broader disclosure including foreign property holdings.

Implementation Timeline: Finance Committee review March 2026, vote May 2026. Register expansion begins October 2026 with voluntary compliance phase. Mandatory compliance deadline January 2027, with 50,000 SEK fines for non-compliance.

Financial Sector Resilience

Crisis Management Function for Financial Sector (HD03116)

Document: HD03116 | Ministry: Finance | Submitted: 17 February 2026

Policy Analysis: Following 2023 regional banking turmoil and Silicon Valley Bank collapse ripple effects, the government establishes a permanent crisis management coordination function within the Financial Supervisory Authority (Finansinspektionen). The measure implements recommendations from the Financial Stability Council's 2025 review.

Key Changes: Finansinspektionen gains authority to convene crisis coordination boards including Riksbank, Finance Ministry, and National Debt Office within 2 hours of emerging financial stress. New resolution planning requirements for systemically important financial institutions (SIFIs) expand from 4 major banks to include 6 additional mid-sized banks and 2 insurance groups. "Living wills" detailing orderly wind-down procedures become mandatory.

Who's Affected: 12 financial institutions classified as systemically important face enhanced supervision and resolution planning requirements. Compliance costs estimated at 15-30 million SEK per institution for initial resolution plan development. Broader financial sector benefits from enhanced stability framework reducing systemic risk.

Political Context: Cross-party consensus on financial stability infrastructure following 2023 banking stress. Sweden Democrats emphasize protection of Swedish-owned banks versus foreign institutions. Social Democrats support measures but question whether resolution planning adequately protects depositors and pensioners. Financial industry generally supportive, viewing regulatory clarity as preferable to emergency interventions.

Implementation Timeline: Finance Committee fast-track review February-March 2026, vote April 2026. Crisis coordination function operational by June 2026. SIFI resolution plans due December 2026.

Digital Identity and Administrative Modernization

E-Identification Companies Reporting Obligations (HD03126)

Document: HD03126 | Ministry: Finance | Submitted: 17 February 2026

Policy Analysis: As digital identification systems become critical infrastructure for government services and private sector transactions, the government establishes enhanced reporting and oversight requirements for e-ID providers. The measure responds to 2025 BankID service disruptions that affected millions of users.

Key Changes: E-ID companies must report system outages within 30 minutes, provide quarterly security audits, and maintain redundant infrastructure capable of handling 150% of peak demand. Financial penalty structure introduced: 500,000 SEK for unreported outages, 2 million SEK for repeated failures.

Who's Affected: Primarily BankID (5.2 million users), Freja eID (850,000 users), and emerging providers. Infrastructure investment requirements estimated at 40-120 million SEK per provider depending on current capacity. Users benefit from improved reliability—government estimates outage frequency could decrease by 60%.

Political Context: Broad support following public frustration with service disruptions. Social Democrats emphasize need for public sector e-ID alternative to reduce dependence on bank-owned system. Liberals support private sector solutions but want proportionate regulations avoiding market concentration.

Implementation Timeline: Civil Affairs Committee review March 2026, vote May 2026. Reporting requirements effective August 2026, infrastructure standards January 2027.

Parental Benefit Administrative Simplification (HD03117)

Document: HD03117 | Ministry: Social Affairs | Submitted: 10 February 2026

Policy Analysis: The Social Ministry eliminates the advance notification requirement for parental benefit applications, streamlining a process widely criticized as administratively burdensome for families and inefficient for the Social Insurance Agency (Försäkringskassan). The reform aligns with broader government digitalization initiatives.

Key Changes: Parents can apply for parental benefit directly without the current 2-week advance notification requirement. Digital application process replaces paper-based notification system. Processing time expected to decrease from average 12 days to 5 days.

Who's Affected: Approximately 115,000 annual parental benefit applications. Families gain flexibility—particularly benefiting self-employed and those in precarious employment. Social Insurance Agency estimates 20,000 staff hours freed for more complex case handling.

Political Context: Rare unanimous support anticipated. Center Party and Liberals championed this measure as administrative simplification priority. Social Democrats support but note this doesn't address broader parental insurance adequacy concerns.

Implementation Timeline: Social Insurance Committee review March 2026, vote April 2026. Digital system launch September 2026.

Government Accountability Responses

National Audit Office: 2015 Police Reform (HD03110)

Document: HD03110 | Ministry: Justice | Submitted: 17 February 2026

Policy Analysis: The government formally responds to the National Audit Office's (Riksrevisionen) critical assessment of the 2015 police reform, which centralized Sweden's 21 regional police authorities into a single national organization. The report concluded the reform failed to deliver promised efficiency gains while undermining local police presence.

Government Response: Justice Minister acknowledges coordination challenges but defends centralization as necessary for addressing cross-regional organized crime. Government commits to enhanced regional coordination mechanisms and additional 500 million SEK for local police stations (2027 budget). However, no commitment to structural reform reversal.

Political Context: The response reveals coalition tensions—Sweden Democrats demand partial reform reversal restoring regional autonomy, while Moderates defend centralization. Social Democrats seized on the audit report to criticize 2015 reform (implemented under Alliance government) and current government's failure to address persistent problems. This debate likely resurfaces during 2027 budget negotiations.

Legislative Path: Constitutional Committee review March-April 2026. Unlike legislative propositions, audit responses typically receive debate but not formal votes. However, opposition parties may force symbolic votes on specific recommendations.

National Audit Office: Climate Policy Evaluation (HD03122)

Document: HD03122 | Ministry: Climate and Enterprise | Submitted: 17 February 2026

Policy Analysis: The government addresses Riksrevisionen's findings that climate policy evaluation remains fragmented and insufficient for assessing progress toward Sweden's 2045 net-zero target. The audit identified gaps in data collection, policy coordination, and impact assessment methodologies.

Government Response: Climate Ministry commits to enhanced evaluation framework by December 2026, including standardized metrics for sectoral progress tracking. However, the response avoids committing to Riksrevisionen's recommendation for independent climate policy review commission, instead proposing internal agency capacity building.

Political Context: This response exposes the Tidö coalition's climate policy vulnerabilities. Green Party and Left Party use the audit to highlight what they characterize as the government's climate backtracking. Moderates and Christian Democrats defend pragmatic evaluation over "climate ideology." The debate intensifies as 2027 EU climate compliance deadlines approach.

Legislative Path: Environment Committee review March-April 2026. Opposition likely demands concrete evaluation framework timelines and funding commitments.

Regulatory Compliance

Veterinary Medicines Restrictions (HD03120)

Document: HD03120 | Ministry: Rural Affairs and Infrastructure | Submitted: 17 February 2026

Policy Analysis: Sweden implements EU Veterinary Medicines Regulation by prohibiting certain antibiotic and growth-promoting substances in livestock production. The measure addresses antimicrobial resistance concerns and aligns with EU farm-to-fork strategy.

Key Changes: Complete ban on colistin-based veterinary antibiotics (last-resort human medicine). Growth-promoting substances prohibited for poultry and swine. Enhanced veterinary prescription requirements for remaining approved antibiotics.

Who's Affected: Approximately 8,000 livestock farms, particularly intensive poultry (450 farms) and swine (1,200 farms) operations. Industry estimates production cost increases of 3-7% depending on farm size and current practices. Consumer meat prices expected to rise modestly (1-2%).

Political Context: EU compliance mandate reduces political friction, though Center Party (representing rural interests) negotiates transition support for affected farms. Sweden Democrats question whether Swedish farms should face stricter standards than EU competitors.

Implementation Timeline: Rural Affairs Committee review March 2026, vote May 2026. Ban effective January 2027 with 12-month transition support program.

Cross-Cutting Analysis: Government Strategic Priorities

This week's proposition package reveals several strategic themes in the Tidö government's legislative approach:

Law-and-Order Dominance: Four of ten propositions directly address security, crime prevention, or enforcement enhancement. This concentration reflects the coalition's core electoral mandate and Sweden Democrats' policy influence. The weapons law and explosives control measures serve as tangible Tidö Agreement deliverables ahead of the 2026 election cycle.

Financial Crime Focus: Three propositions target financial integrity—VAT fraud, beneficial ownership, and crisis management. This clustering suggests Finance Ministry's strategic emphasis on revenue protection and financial system resilience following recent banking stresses and persistent tax evasion concerns.

Administrative Modernization: The e-ID reporting requirements and parental benefit simplification demonstrate the government's parallel focus on digital infrastructure and bureaucratic efficiency. These measures aim to demonstrate competent governance beyond ideological policy battles.

Accountability Pressures: The two National Audit Office responses reveal persistent governance challenges—the police reform implementation gap and climate policy evaluation weaknesses expose vulnerabilities opposition parties exploit. The government's defensive responses suggest sensitivity to competence criticism ahead of election positioning.

Coalition Management: The proposition mix carefully balances Tidö partners' priorities: law enforcement (Sweden Democrats), financial integrity (Moderates), administrative efficiency (Liberals), and family policy (Christian Democrats). However, fault lines remain visible—particularly regarding surveillance powers and climate policy.

What to Watch This Week

  • Constitutional Committee: Initial weapons law (HD03141) review begins 21 February. Watch for Liberal party amendments on police inspection powers—coalition cohesion test.
  • Finance Committee: VAT fraud measures (HD03128) hearing 22 February featuring Swedish Trade Federation and Tax Authority testimonies. Small business exemption thresholds likely negotiation focus.
  • Social Democrats' Response: Opposition party conference 24 February expected to address weapons law and VAT fraud propositions. Magdalena Andersson's positioning determines whether S cooperates on crime measures or forces confrontation.
  • Media Attention: Weapons law dominates news coverage—public opinion polling on firearms regulation likely influences Liberal and Christian Democrat positioning. Aftonbladet investigative series on VAT fraud continuing through February shapes public pressure.
  • Committee Schedules: Defence Committee fast-tracks explosives control (HD03123) for March vote ahead of NATO summit. Timeline pressure may limit opposition amendment opportunities.
  • EU Compliance Deadline: Beneficial ownership register (HD03129) faces June 2026 EU enforcement deadline—limited room for domestic political maneuvering.