13. The Policy Watch

The Policy Watch is a weekly update which aims to provide concise insights into the current policy landscape. Tailored for our members and individuals interested in international affairs, this update offers a brief yet comprehensive summary of key developments affecting policy decisions and political trends in the UK, Sweden, and the EU.

OMBUDSMAN ACCUSES DWP OF FAILING THOUSANDS OF WOMEN OVER STATE PENSION AGE COMMUNICATION.

According to an investigation by the Parliamentary and Health Service Ombudsman, thousands of women may have been left unaware of changes to the State Pension age due to the Department for Work and Pensions’ (DWP) inadequate communication. The investigation states that DWP has failed to provide accurate and timely information about State Pension reforms since 1995, impacting women’s financial decisions and personal autonomy, without any acknowledgement or remedial action.

In response to DWP’s refusal to comply, Ombudsman Chief Executive Rebecca Hilsenrath has called for urgent parliamentary intervention to establish a compensation scheme to hand out between £3.5 billion and £10.5 billion to affected women.

GOVERNMENT PROPOSES NEW DIRECTION IN ENERGY POLICY TO MEET GROWING DEMAND

The Government submitted the energy policy proposition to parliament on Tuesday, aiming to overhaul energy policy to address increasing electricity demands in the short, medium, and long term while ensuring a secure energy supply and efficient climate transition.

The proposition suggests new energy policy objectives, including planning goals to facilitate sufficient electricity supply for increased electrification and enable green transition. Sweden aims to prepare for meeting a demand of at least 300 TWh by 2045, emphasising geographic coverage and considering uncertainties regarding project realisations. Additionally, delivery security goals are outlined to ensure a timely and adequate electricity supply where demand exists. The aim is for an efficient market fostering competitive prices, with both planning and delivery security objectives to be regularly reviewed starting in 2030.

GOVERNMENT INITIATES NATIONAL CLIMATE ADAPTATION STRATEGY WITH FOCUS ON LEGISLATION

In response to recent extreme weather events, the Swedish Government has revised its national strategy for climate adaptation, emphasising the need for robustness against natural disasters and climate change effects. Minister for Climate and Environment Romina Pourmokhtari underscores the necessity for enhanced collaboration between authorities, municipalities, and property owners, alongside the development of new legislation to streamline responsibilities and financing models. A special investigator, Johan Hjalmarsson, has been appointed to propose cost-effective climate adaptation measures through revised legislation and clearer funding mechanisms, aiming for expedited implementation by April next year.

SWEDEN SUPPORTS CZECH AMMO INITIATIVE FOR UKRAINE DEFENSE

Sweden has pledged EUR 30 million to support a Czech ammunition initiative to provide artillery shells to Ukraine. The Government has authorised negotiations between the Defence Materiel Administration and Czech authorities to facilitate ammunition procurement.

Minister for Defence Pål Jonson emphasised Ukraine’s urgent need for ammunition, particularly artillery shells, and affirmed Sweden’s commitment to supporting Czechia’s efforts to address this need. The Czech initiative seeks to swiftly acquire large volumes of ammunition from the global market for donation to Ukraine, with additional funding from other nations being welcomed to bolster the initiative’s impact.

SWEDISH ECONOMY FACES PROLONGED RECESSION DESPITE FALLING INFLATION SAYS SVANTESSON

Inflation rates are significantly declining, while unemployment is expected to continue rising in Sweden, according to a new economic forecast from the Finance Ministry. The subdued growth, coupled with weak labour market prospects, suggests that the Swedish economy is projected to remain in a recession until 2025. Finance Minister Elisabeth Svantesson emphasised the results of inflation control efforts but warned of continued economic challenges, anticipating a prolonged period of low growth and high unemployment rates until at least 2025.

SWEDEN URGED TO EMBRACE AI ACROSS ALL SECTORS TO SECURE GLOBAL LEADERSHIP

A new national strategy, devised by AI Sweden, stresses the imperative for Sweden to adopt AI comprehensively and aims for Sweden to be top-10 in the Global AI index rating. Presented at a press conference attended by Civil Minister Erik Slottner (KD), the strategy aligns with the government’s ongoing digitalisation policy review and aims to reaffirm Sweden’s digital prowess.

With AI’s global proliferation sparking debates on regulation and application, AI Sweden unveils a strategy targeting global preeminence. It advocates for Sweden to set a benchmark for national integration of AI, fostering sustainable growth across public and private sectors with positive global impact.

EUCO SUMMIT: SANCTIONS, BOSNIA, AND DEFENCE INDUSTRY

On Thursday and Friday, the EU leaders gathered in Brussels for the EUCO summit. During the summit, the 27 heads of state/government discussed, in short, (i) support for Ukraine and the new Russian sanction package, (ii) improving the European defence industry’s access to private and public funding, (iii) calling for an immediate humanitarian pause in Gaza, (iv) open accession negotiations with Bosnia, (v) Migration, (vi) strengthened crisis preparedness, and (vii) agriculture.

COUNCIL ADOPTS THE CRITICAL RAW MATERIALS ACT

The Council of the EU has formally adopted the Critical Raw Materials Act (CRMA), concluding the decision-making process. This legislation introduces stringent deadlines for permit procedures for EU extraction projects, mandates supply-chain risk assessments, and establishes ambitious benchmarks for the EU’s annual consumption of raw materials. The CRMA aims to secure access to critical and strategic raw materials vital for green and digital transitions, defence, and space industries and facilitate the development of strategic projects through streamlined administrative processes.

EU STRENGTHENS WHOLESALE ENERGY MARKET OVERSIGHT

The European Union has bolstered its defences against market manipulation with the adoption of a new regulation by the Council, aimed at reinforcing surveillance in wholesale energy markets. The regulation, designed to ensure fair competition and transparency, mandates stricter requirements for market participants based in third countries, necessitating the appointment of a representative within a member state where they operate. Additionally, the European Union Agency for the Cooperation of Energy Regulators (ACER) gains enhanced investigative powers, including the authority to conduct cross-border inquiries and impose periodic penalty payments to uphold compliance.

EU AND NORWAY LAUNCH STRATEGIC PARTNERSHIP FOR SUSTAINABLE RAW MATERIALS AND BATTERIES

The European Union and the Kingdom of Norway have signed a Memorandum of Understanding (MoU) to develop sustainable land-based raw materials and battery value chains, advancing the EU-Norway Green Alliance. Maroš Šefčovič of the European Commission and Jan Christian Vestre of Norway’s Ministry of Trade and Industry sealed the agreement, aiming to bolster trade resilience, enhance economic competitiveness, and create jobs.

This partnership highlights joint efforts across five key areas, including integration of value chains, research collaboration, adherence to environmental standards, financial mobilisation, and workforce development.

KORČOK WINS SLOVAKIA’S PRESIDENTIAL ELECTION FIRST ROUND

The liberal and pro-EU Candidate, Ivan Korčo, emerged as the front-runner in Slovakia’s presidential election first round, securing 42% of the vote with over 99% of districts accounted for. His contender, ruling coalition member Peter Pellegrini, trailed behind with 37%. As no candidate clinched a majority, a runoff ballot is scheduled for April 6.

VARADKAR TO RESIGN AS IRISH PRIME MINISTER, HARRIS SET TO BECOME YOUNGEST-EVER PM.

Irish Prime Minister Leo Varadkar announced his resignation during a press conference following Wednesday’s Cabinet meeting in Dublin. Varadkar disclosed his intention to step down as head of the ruling Fine Gael party immediately, yet he will continue as Taoiseach until his party’s annual conference in April, anticipating the selection of his successor by then. His unexpected departure raises uncertainties about the coalition government’s future, potentially hastening the timing of the next general election, with main opposition Sinn Féin leading in polls.

On Sunday, Fine Gael Party appointed Simon Harris as their new party leader.