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Will Sweden cap profits in the welfare sector?

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  • 2016
  • Will Sweden cap profits in the welfare sector?

Lindahl expert called in to comment proposals

A proposal from the Swedish welfare committee to cap profits in the welfare sector has been much discussed of late. Sweden has been at the forefront of bringing private money and initiative to the welfare sector. From schools to hospitals and from nurseries to retirement homes, the change in the way Swedes view the provision of basic services has shifted. Businesses have been attracted by the prospect of bringing rational processes, adding value and improving quality. And in some cases, the financial returns have been impressive. The independent Swedish think-tank, SNS recently arranged an over-subscribed panel debate on the sticky issue of profits in the welfare sector. Lindahl’s expert in procurement and EU law, Eva-Maj Mühlenbock was invited to join a distinguished panel to discuss the proposal.

Eva-Maj questions the committee’s proposed cap on profits because it’s possible that any such rules would contravene Swedish and EU law. This insight has made a considerable impact in the media and Sweden’s leading newspapers have highlighted the issue.

For current or potential investors and stakeholders in the welfare sector, this proposal and consequent legislation will have a significant impact on business models. Naturally, Lindahl is well placed to put you one step ahead of any developments. It is more important than ever to look at value protection in your business models. So if you’d like to know more about the possible impact of the welfare proposals on you position, please reach out to us.

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