The economists of Landsorganisationen (LO), the largest and most powerful labour union in Sweden, are proposing an Skr400bn (€43.5bn) general welfare fund, which would be a significant boon for asset management firms.

International fund managers will be keeping a close eye on a plan by the union, led by chief economist Dan Andersson, to use the government's budget surpluses to create the fund through annual contributions. This would eliminate the need for tax increases on the part of local authorites and counties, which are mainly responsible for care of the elderly.