Swedish Bank Tax Promised by Opposition Party as Election Nears

Sweden’s main opposition party, the Social Democrats, is standing by plans for a temporary tax on banks despite warnings from lenders and some economists that the measure would push up mortgage costs for households.

Mikael Damberg, the party’s economic policy spokesperson and former finance minister, said in an interview with Svenska Dagbladet that Swedes are overpaying for banking services because competition in the sector is too weak.

The comments reinforce the party’s stance from its spring budget proposals as the Nordic nation gears up for a general election on Sept. 13. Most recent polling puts the center-left bloc of ...