Sweden's govt, Left party propose profit cap on welfare companies

AcadeMedia AB

19/01/2018 11:07

STOCKHOLM, Jan 19 (Reuters) - Sweden's centre-left 
government and the Left Party has agreed to put forward a bill 
for a profit cap on private schools and care homes funded by 
taxpayers, they said on Friday.  
     The proposed cap - on operating profit in relation to 
operating capital of 7 percentage points plus the risk-free rate 
- would hit education firms such as Academedia  ACADE.ST  and 
Engelska Skolan  ENG.ST  as well as several private 
equity-firms. 
    However, the proposal will have slim chances to pass 
parliament as the minority government and the Left Party lack 
the necessary votes. All other opposition parties have 
previously vowed to vote against the proposal. 
 
 (Reporting by Johan Ahlander; Editing by Daniel Dickson) 
 ((johan.ahlander@thomsonreuters.com; +46 707 211027; Reuters 
Messaging: johan.ahlander.reuters.com@reuters.net)) 
 
Keywords: SWEDEN WELFARE/COMPANIES