Sweden’s government steps up efforts to vet foreign takeovers

Bloomberg

Sweden is stepping up efforts to shield its critical businesses from foreign takeovers at a time of economic weakness due to the Covid-19 pandemic.
Interior Minister Mikael Damberg and Foreign Trade Minister Anna Hallberg on Monday unveiled a series of proposals. They include asking the Swedish Defense Research Agency to map out areas where foreign direct investments may have a negative impact on national security, and giving the Inspectorate of Strategic Products the authority to collect information on a foreign investor that has shown interest in a Swedish company, “if the direct investment risks having an effect on security and public order within the EU,” Damberg said at a press conference.
“These are important pieces of the puzzle in the works to give Swedish authorities the prerequisites to work against foreign direct investments that may put our national security at risk,” Damberg said.
The issue has become more urgent following events in neighbouring Norway, where the creditors of Norwegian Air Shuttle AS recently took over the airline, resulting in a Chinese state-owned company becoming its largest stakeholder. Scandinavia’s main carrier SAS, which is partly owned by the Swedish and Danish states, is currently discussing recapitalisation plans amid a breakdown in global air travel.
Last week, a parliamentary committee asked the Swedish government to swiftly look into the matter and implement measures that would make it possible to scrutinise foreign takeovers.
The move is in line with developments in other European Union countries amid concerns that they risk losing control of sensitive technology and infrastructure. In Germany, Chancellor Angela Merkel’s cabinet has enacted measures that enable the government to block acquisitions from non-EU companies that present “potential interference.”

Swedish faith in Covid-19 strategy plunges
Swedes’ confidence in their country’s handling of the Covid-19 crisis has plunged to less than half the population, as the scientist behind the controversial strategy admits he made mistakes.
A poll shows an 18 percentage point slump in Swedish support for the government’s response to the virus, including its decision to leave much of society open during the spread of the pandemic.
According to the Novus poll published by Sweden’s state broadcaster SVT, only 45% of Swedes now have “fairly high or very high” faith in the strategy, compared with 63% in April.
But the man responsible for Sweden’s controversial Covid-19 strategy says there’s no need to change course, despite acknowledging that a different response earlier on might have saved lives.
Anders Tegnell, Sweden’s state epidemiologist, triggered international headlines recently when he told a local broadcaster he would have adopted a different model to contain the virus at its onset, had he known then what he knows now.
The admission prompted members of Sweden’s government to speak out, with the health minister, Lena Hallengren, demanding clarity. Tegnell “still can’t give an exact answer on what other measures should have been taken,” she told local media. Prime Minister Stefan Lofven has promised an inquiry into Sweden’s response to Covid-19.