Moderates Blame Previous Government for Pension Billions Lost to Northvolt

The Moderates want to blame the previous red-green government for over six billion kronor from the AP funds being invested in Northvolt, and thereby “going up in smoke.” This, despite the fact that the party itself voted in favor of the legislative changes that made the investment possible.

From December 2018 until March 2020, the Riksdag voted to approve a number of changes to the National Pension Funds Act.

Prior to this, the purpose of the AP funds, as they are called, was primarily to provide their owner—that is, ultimately the Swedish people—with the best possible return on their pension money.

Or, as stated in the legal text: “the greatest possible benefit for the income-based old age pension insurance” and “long-term high returns.”

“Sustainable development”

But the then red-green government, led by Stefan Löfven (S), also wanted to be able to use the money to achieve political objectives. New wording was added to the law stating that the AP funds should also “promote” so-called “sustainable development” and that there should be “a shared set of values for the management of fund capital.”

Additionally, a ban on investing in unlisted companies was abolished. According to responses from the funds themselves, it was considered “positive” for the AP funds’ billions to be used to “more directly influence strategic issues such as sustainability.”

The government received broad support for its changes. The parties in the center-right opposition—the Christian Democrats, the Liberals, the Moderates, and the Sweden Democrats—all voted in favor.

With these legislative changes, the AP funds were allowed to invest in risky projects, such as Northvolt. Through a front company, more than six billion kronor of pension savers’ money was invested in the battery manufacturer. Money that has now been lost.

Moderates blame Social Democrats

Today, in hindsight, the Moderates want to lay the blame for the lost pension billions on the Social Democrats and in particular their party leader Magdalena Andersson. Last week, the former finance minister was summoned to the Constitutional Committee (KU) to answer questions about Northvolt.

At the beginning of the hearing, the Social Democratic leader pointed out that her party was not alone in making the law changes that enabled the Northvolt investment.

– It is worth noting that the AP funds make their investment decisions independently of the government, based on the framework and legislation decided by the Riksdag. The legislation that formed the basis for the AP funds’ investment decisions during this period was developed by the pensions working group in broad consensus and was passed in the Riksdag with broad support, she said.

Representatives of the governing parties, however, argue that the red-green government—and in particular its Green ministers—exerted questionable pressure on the AP funds to get them to invest money specifically in Northvolt and similar high-risk projects.

Hangs up the phone

Moderate Riksdag member Mattias Karlsson is one of those who, in a KU complaint, has demanded that Magdalena Andersson explain herself before the Constitutional Committee. When Samnytt calls him, he does not want to comment on his own responsibility for the lost pension billions.

Mattias Karlsson himself sat on the Finance Committee in 2020 and was one of the Riksdag members who voted yes to amending the law to enable the Northvolt investment.

– No, then I think that’s it. All the best! he says and hangs up.

Before hanging up, Mattias Karlsson asks that he be called again at a later time. When we try to call again at the agreed time, he does not answer.