SCI NEWSLETTER 1: THE WORLD AT YOUR FINGERTIPS

SWEDEN IN BRIEF

What is Going on with NATO?
The NATO application has been on the table for a long time now. Recent statements from Hungary and Turkey indicates that Sweden’s application process is far from finalized. Despite optimism from the Swedish government, the situation currently resembles a dead lock; Erdogan stated that Sweden has not fulfilled the criteria, emphasizing that F16 fighter jets must be supplied from the US in order for Sweden to advance in the process. Erdogan and Biden are seemingly not advancing in negotiation either. Additionally, the UN conference saw meetings between Finnish prime minister Orpo and Erdogan, but none planned meetings between Erdogan and Kristersson. The process is expected to be further delayed, but Sweden will continue to negotiate and gain support from other NATO nations.

The SEK Crisis
On Monday the 18th of September, one EURO was worth 12 SEK. It managed to recover slightly during the week, but there is no denying that the Swedish currency is struggling to keep up with the dollar and EURO. This year, the SEK lost 7% against the EURO, that number piles up to 40% over a 10-year span. Experts claim that the currency should be theoretically stronger, and there are myriads of theories about this weakening, one of them being that the currency has been over-valued. The Central Bank is doing what they can to investigate and amend this weakening of the SEK.

2024 Budget
On the 20th of September, the Central government tabled a rather cautious budget for 2024. It is based on an agreement between the parliament and Sverigedemokraterna. The aim of the budget is to tackle inflation, which continuous to be a large problem for the Swedish economy. This implies limited investments from the business sector, as larger investments might intensify inflationary pressure, effects will be felt by Swedish and foreign companies. The government has stated that 2024 will be challenging, especially with an anticipated recession. However, the job market is reaming strong, and the Swedish economy is expected to recover by 2025. Some larger changes include a new job tax deduction of 11 billion SEK, which is mainly going to hit large income taxpayers, alongside increased expenditure on defense and military.

Criminality
Sweden has been struggling with gang violence, shootings, and criminality in recent years. However, this past week came with a “crime wave” that caused the government to call on a crisis meeting. Just within the span of 10 days, seven people were killed in gang-related shootings. It is believed that this wave was caused by an internal conflict between the gang Foxtrot and so-called Kurdish Fox. There is an overall fear in society that these shootings will spread and affect external victims, and recent reports also indicate that police staff were warned rather early on about the danger of the Kurdish Fox, creating a wave of insecurity and mistrust.

Hurray for the King!
To end this Sweden update on a positive note (for there are plenty of good news recently as well), King Carl Gustav XVI celebrates 50 years on the throne, making him the longest reigning king of the country, and second longest in Europe! On the 15th of September 50 years ago, King Carl Gustav was crowned in Stockholm at age 27.

SCI Day 2023!
The SCI Day 2023 was conducted 31st of August this year, and here comes a summary of the day for those who were not able to attend. There was a lecture by the Swedish Institute about Brand Sweden, which highlighted that despite recent challenges such as burnings of the Quran, the Swedish image has not been damaged to a significant extent. In terms of innovation, reliability and trust, Sweden ranks high in many countries; only in China and the Middle East have Sweden decreased its image. The SCI workshop gave ideas about expanding the website, increasing social media presence, and making communication between the chambers easier. The final AI lecture talked about the role of AI how it will go from a “management fraud” to actually influencing companies in daily operations.

UPDATES FROM THE WORLD

BRAZIL
Environmental Consciousness, Anniversary Party and New Intern!
The Brazilians are becoming more and more environmentally conscious, and one example of this is the event that we had here at the chamber last Tuesday. The event was about Brazil’s ESG challenges and opportunities within UN 2030 SDGs and was a huge success! We are also busy working on projects and events, celebrating 70 years of Swedcham in Brazil, such as the launch of our book and 70-years anniversary party. We also have a new intern, Josephine, from Gothenburg’s School of Business, Economics and Law working on new initiatives with Young Professionals.

CHINA
China in Agreement with the EU
European Council President Charles Michel met with China's Prime Minister Li Qiang in the margins of the G20 Summit in New Delhi, India. Both sides confirmed their interest in maintaining stable and constructive relations. EU and China indicated that they would continue ensuring that this relationship is balanced, reciprocal and mutually beneficial.

Rail and Shipment Pact in the Making
Several leaders, including those from the United States, India, Saudi Arabia and European Union, were to outline plans for a rail and shipping corridor that would connect the Middle East, South Asia and Europe to facilitate trade and transportation. The pact comes at a critical time as Joe Biden seeks to counter China’s Belt and Road push on global infrastructure by pitching Washington as an alternative partner and investor for developing countries at the G20 grouping. However, financing and timeline have not yet been determined.

GREECE
8th Business Forum Greece-Sweden
In Greece, the Swedish Chamber of Commerce is busy hosting and planning the 8th Business Forum Greece-Sweden, “A New business Environment is Emerging” on October 19th. The forum aims to shed light on the experiences and innovative practices emerging from Sweden and Greece, showcasing how companies are adapting to the dynamic landscape of today's global business environment and the emerging trends that are reshaping industries worldwide. Focus is on geopolitics, AI, circular business models and green energy. Our chamber in Greece extends an invitation to all SCI members, and others, to attend and sign-up, through this link.

ESTONIA
Brand Sweden
Sweden has been - and continues to be - one of the biggest partners to Estonia, both in terms of exports to Sweden and investments from Sweden to Estonia. The Swedish Chamber of Commerce in Estonia works for an even stronger relationship between our two countries and has today close to 100 member companies and organizations.

Site Visits
Among the activities arranged by SCCE, company visits are a vital part. This spring we visited Fors MW, one of the oldest Swedish companies in Estonia and manufacturing equipment and machines for forestry, farming and construction sites. This was followed with a visit to Ericsson’s supply site in Tallinn. With 2300 employees, keeping up production 24/7/365, it is one of Ericsson’s biggest supply sites worldwide. And, this autumn we will visit Inission, a Swedish owned company offering tailor-made development and manufacturing services for complete electronic and mechanical products.

Crayfish Party and Royal Visits
SCCE also keeps up Swedish traditions with our annual Summer, Crayfish and Christmas Parties, where the Kräftskiva also Kicks-Off the Autumn Business Season.
And, this special Royal Jubilee Year, Estonia’s President Alar Karis invited King Carl XVI Gustaf and Queen Silvia to a State Visit to Estonia in May. The State Visit created an impressive amount of media interest. Representatives of SCCE took part in the Sweden-Estonia Business Forum.

NETHERLANDS
Launch of Business Climate Survey
The Business Climate Survey for the Netherlands was launched at the Swedish Embassy on September 6th. The survey measures the economic outlook, industry trends, success factors, local conditions, and opportunities. Some key findings include:

Swedish companies in the Netherlands rate the business climate in the Netherlands 4.5 out of 5, ranking the Netherlands first in Europe and third globally.
In 2022, 83% of Swedish companies in Netherlands reported profitability, surpassing the global average of 68%, it was the highest globally together with Brazil.
The Netherlands has the highest environmental and sustainability interest from globally, together with UK and Germany. In the Netherlands, the rate is at 87%.
34% of the responding Swedish companies report to have between 20-50% female staff in their management teams.

PORTUGAL
Webinar About Living in Portugal
The 14th of September, Swedish Chamber in Portugal hosted a webinar which focused on the Portuguese housing market and how international private banks offers services that could simplify an international lifestyle. The webinar gave plenty of juridical aspects and helpful insights about law processes. It was conducted in a cooperation with SEB, Settla Law and Skandiamäklarna in Portugal.

SINGAPORE
Investment Protection Webinar in Asia
SwedCham Singapore is hosting a webinar about investment protection. Foreign investments are not only protected by contracts and national law but can also be protected by international law, such as bilateral investment treaties (BITs). There are approximately 3,000 BITs worldwide, more than 1,000 concluded by Asian countries. This talk will give you an introduction to investment protection treaties in Asia, explaining both what they are and how they work, the level of protection generally provided to investors, and how a company can structure its investment to use them. Register here

SPAIN, MADRID
Brand Sweden
>From the Swedish-Spanish Chamber of Commerce, we have not perceived that the burning of the Quran has affected business relations between Spain and Sweden. In Spain, since the government elections on July 23, the major political parties have been working to form a government without success. This situation has led to a certain level of instability, resulting in investments on hold.

Paddle, Reading and Gender Equality
This September we will have two social events: our Paddle & Päddel Tournament, organized with the Nordic Chambers, and the launch of our CCHS Reading Club. We will close the month with the presentation of the Business Climate Survey, in collaboration with Team Sweden Spain. The month of October will start with an event that aims to promote female talent and gender equality, held together with the other European Chambers of Commerce in Spain.

TURKEY
Brand Sweden
Turkey – a very relevant country in midst of the Quran burnings – has received various pictures about the Swedish image. Some companies claim that they have no effect on businesses, while others say it could possibly affect public stakeholders to such an extent that local Swedish companies face challenges with loyalty. However, there is a general decrease interest in Swedish business promotion. The security threat level has now culminated in that Team Sweden will not do any physical business promotion activities on site until further notice. Additionally, due to economic unsustainability and inflation, Swedish companies are facing with troubles on salary adjustments and employing long-term high skilled employees.

Crayfish Party!
Besides that, recent activities will be "SCC's Nordic Crayfish Party on 19.09.2023 in cooperation with other Nordic communities in Turkey and we are planning to organize a webinar on customs related issues and a physical coffee-break seminar on legal updates for our members in October.

Forwarded by,

Kristiina Brodén - SCCE Ombudsman