Monday, October 20, 2025

Polaris of Enlightenment

Soaring rent hikes in Sweden threaten to leave families homeless

Welfare collapse

Published 17 November 2024
– By Editorial Staff
Many Swedes testify that they have no ability to pay the rents that landlords are demanding.
3 minute read

In recent years, many real estate companies have demanded annual rent increases of between 10% and 15% – if this becomes a reality in the future, many Swedes will be forced to leave their homes – and risk being left without a roof over their heads.

I can’t eat enough to feel full, can’t go to the dentist, or similar. The pain threshold has been reached. Already cutting back on food and essential care. I’ve replaced one meal a day with porridge already”, reads one of many testimonies.

In the last two years, the country’s rent increases have averaged 4.1% and 5.0% respectively – and even though all rents for 2025 have not yet been fully negotiated, an increase of around 5% is expected next year as well.

Many landlords again called for rent levels to be raised by up to 15%, citing inflation, more expensive maintenance and higher costs in general, but this was not the case at least not this time.

Landlords have often argued that double-digit annual increases are reasonable, that it is not only low-income earners who live in rented flats and that many people could easily cope with such a significant rise.

“Would mean disaster”

When the Swedish Union of Tenants asks tenants around the country how a double-digit rent increase would have affected them, however, a different picture emerges, and many testify that they would have become homeless if the real estate companies had their way.

Unfortunately, I will have to terminate my contract”, reads one testimony.

It would be difficult for me to stay. I’m retired and don’t have a large pension. There are so many other things that have also become more expensive. You try to buy as cheaply as you can but it’s difficult sometimes to make the money last a whole month”, says another.

Poor pensioner that I am, it would mean disaster and moving if I would even be able to move”, explains a third.

“Working full-time and living in a flat”

Others testify how, despite working full-time and living in a small apartment, they would not have been able to cope with a rent increase of around 15% and would instead have had to look for a room and try to live with someone.

It doesn’t feel good at all, I’m 50 years old, have a full-time job but won’t be able to live in my small first floor if I get such a big rent increase of 15%. Where are we going, when will someone put a stop to it?”

Obviously a lot, as the rent for 44 square meters is already SEK 9,250. It’s hard to find anything much less than that. I’m 59 years old and I feel that being a lodger when you’re working full-time doesn’t feel very dignified”, says another tenant.

More families with children are being evicted

There are also those who talk about how they would be forced to move out onto the street if landlords next get their way, and how social safety nets are inadequate.

It would mean that me and my children would not be able to stay as we are already struggling to make ends meet with previous rent increases and all the increased costs of basic living”.

Tenants also explain how they already stopped using medication that is “not essential”, eat with relatives and have stopped spending money on everything except rent, utilities and food – but that the money is still not enough.

Can’t eat my fill, can’t go to the dentist and the like. The pain threshold has been reached. I already have to cut back on food and important care. Changed one meal a day to porridge already”, says one tenant.

Is there a pill that can fill me up that’s covered by the high-cost protection?”, wonders another.

The testimonies are in line with the Swedish Enforcement Authority’s reports that evictions are increasing sharply in Sweden – and that more and more families with children are also becoming homeless. Despite the alarms, those in power have not presented any concrete solutions to the growing problem.

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Growing number of Swedes living in poverty

Welfare collapse

Published today 12:46
– By Editorial Staff
For the most vulnerable, every day becomes a struggle when the safety net fails.
1 minute read

An increasing number of Swedes are living in material and social poverty. According to this year’s poverty report from Sweden’s City Missions, poverty in Sweden has nearly doubled since 2021.

Last year, 698,000 Swedes lived in some form of poverty, according to the report. The increase in poverty in Sweden stands out across Europe, particularly in terms of speed – having nearly doubled in four years. Jonas Rydberg, secretary general of Sweden’s City Missions (a charitable organization), believes the rising poverty is largely due to the economic downturn and sharp increases in food prices.

But what we can show in our report is that it’s also because it’s becoming increasingly difficult to have one’s rights met. For example, financial benefits. They are inaccessible and difficult to obtain, he says in Nyhetsmorgon.

Rydberg notes that many of those seeking help from the city mission don’t receive the general social insurance benefits they’re entitled to, making it significantly harder to manage daily life. Social welfare support, for example, has become more complicated to obtain and the payments are very low.

It has become increasingly difficult and the ultimate safety net is being eroded in Sweden.

The Swedish government recently presented a welfare reform that involves stricter requirements for social benefits, with the goal of getting more people into work. According to Rydberg, the proposal risks instead pushing more people into poverty.

It’s difficult and the labor market in Sweden is not accessible, he states.

Definition of poverty among adults in Sweden

An adult is considered poor if they lack the financial means to meet at least five of the following basic needs:

  • Eat protein-rich meals (meat, fish, chicken or vegetarian) every other day
  • Maintain a satisfactory indoor temperature in their home
  • Invite friends and family over or meet them for meals or coffee at least monthly
  • Have access to the internet
  • Manage to regulate loans and pay bills on time
  • Have a small amount available for personal expenses weekly
  • Own at least two pairs of functional shoes suitable for different weather conditions
  • Replace broken or worn-out furniture when needed
  • Participate in leisure activities with some regularity
  • Buy new clothes when the old ones are too worn
  • Handle an unexpected expense of €1,200 (the amount is adjusted periodically)
  • Take a week-long vacation away from home annually
  • Own a personal vehicle

Source: Sveriges stadsmissioner (Swedish City Missions)

Finland was a European model – now homelessness is rising again

Welfare collapse

Published 18 October 2025
– By Editorial Staff
Getting off the streets is extremely difficult once you end up there.
3 minute read

Finland has long been a model in the fight against homelessness, but now the trend is reversing.

For the first time since 2012, the number of homeless people is increasing – and street homelessness among young people is rising sharply.

Julius Virtavuori has lived without permanent housing for over two decades. When Yle (Finnish public broadcaster) meets him at the Tupa supported housing facility in Helsinki, Finland, he reflects on his situation.

— It’s quite a long time. I think these are probably the last years I’ll be in this situation. There are apartments in Finland after all.

The hardest part is the feeling of lacking goals, he tells them.

— You take one day at a time. There’s nothing to build your life on long-term. And the side effects that homelessness brings – a certain use of intoxicants. That boom is long past for me, now I just take it easy.

Successful model under pressure

Julius’s situation is not unique, but Finland has for many years worked systematically to reduce homelessness. The country has been a pioneer in Europe, primarily through the so-called “Housing First principle”.

The model means that homeless people first receive their own apartment with a rental contract, and then support services tailored to individual needs. Instead of requiring people to first solve their social or health problems to qualify for housing, the order is reversed – housing comes first. The approach has received broad international attention and shown good results.

But according to a recent report from the Housing Finance and Development Centre of Finland (formerly ARA), the trend has been broken. For the first time since 2012, homelessness is increasing again.

At the end of 2024, 3,806 homeless people were registered in Finland. Particularly alarming is the increase in rough sleeping – people sleeping outdoors, in stairwells, or in temporary shelters. A total of 649 people lived under these conditions, which is 230 more than the previous year.

However, the figures are only indicative, as homelessness is difficult to measure exactly. A person who sleeps at an acquaintance’s place one night may be forced to sleep on the street or in a stairwell the next night.

“Very alarming”

Emergency housing units report a sharp increase in young people falling outside society’s support measures and being forced to sleep on the street.

Jussi Lehtonen, service manager at the organization Vailla vakinaista asuntoa (Without Permanent Housing), has worked with homelessness issues for over 30 years. He sees the increasing youth homelessness as particularly worrying.

— It’s very alarming, because young people have their whole lives ahead of them. It shows for years afterward if they end up in that situation. And it would be very important to get them out of that situation quickly, says Lehtonen.

He believes that homelessness is often a consequence of too few affordable homes combined with cuts in benefit systems, which has made it harder for people with small incomes to manage financially.

— Ending up on the street is harmful in many different ways. For some, homelessness becomes chronic. The social network is reformed, and you have quite a lot to do with people who are on the street. Anyone understands that’s not good, Lehtonen states.

Germany’s pension shock: people must work until at least 73 years of age

Welfare collapse

Published 9 October 2025
– By Editorial Staff
In Germany's increasingly deteriorating welfare climate, Chancellor Merz is now signaling a dramatic increase in the country's retirement age - while money continues to flow to Ukraine.
3 minute read

While Berlin sends billions to Ukraine and turns a blind eye to migration costs in Germany, voices are being raised for Germans to work longer to save the welfare system. German Federal Chancellor Friedrich Merz (CDU) is preparing the country’s residents for a longer working life.

According to a new proposal, the retirement age in Germany could gradually be raised to 73 years as part of the government’s attempt to save an increasingly strained welfare system. Critics warn that the ideas about retirement age 73 lack both realism and fairness.

Friedrich Merz has stated that Germans must get used to the idea of less leisure time and longer working lives to finance pensions, healthcare and elderly care.

Meanwhile, economic analyses show that the country’s former strength as the EU’s economic engine has turned into stagnation. The deficit in public insurance systems is growing rapidly and several German states report shortages of both personnel and funding in healthcare.

The government’s expert council now warns that demographic developments require decisive action – more workers, higher fees and later retirement.

Money to Ukraine prioritized

But while Germans are urged to work until well after 70 years of age, Berlin continues to send billions to Ukraine. According to German media, the military and humanitarian support amounts to well above 40 billion euros since 2022.

Critics argue that the current government simultaneously fails to address the homeland’s own financial problems. The growing national debt, rising energy prices and weak industrial production have put welfare under severe pressure – but aid to Kiev remains unchanged.

Many Germans therefore wonder how the country can afford to finance the war abroad but not its own pensions.

Tens of billions of euros in German taxpayer money go to Ukraine every year. Montage. Photo: U.S. Marine Corps/Sgt. Samuel Fletcher, President Of Ukraine

Immigration’s impact

The official explanation for the crisis is an aging population. But several economists argue that the problem rather lies in the extensive immigration over the past two decades.

According to calculations by pension researcher Bernd Raffelhüschen, many newcomers contribute less to the social system than they receive back, especially during their first years in the country.

In an interview with German tabloid Bild from October 2024, he said that immigration will not save either the economy or welfare – rather the opposite.

Other experts also argue that integration problems and low employment among certain immigrant groups have become a long-term structural concern for the German economy. Despite this, the issue receives limited space in political debate.

Montage. Photo: Amisom, Pexels

The chancellor’s dilemma

The Federal Chancellor thus faces a double dilemma. On one hand, the finance ministry demands reforms to avoid collapse in the welfare system. On the other hand, new cuts and raised retirement age risk increasing discontent among voters who already feel that burdens are distributed unfairly.

The opposition, particularly Alternative for Germany (AfD), has quickly exploited the situation and describes the proposal as a betrayal of the country’s workers. Meanwhile, Merz tries to maintain a hard line against criticism and present the reform as a necessity.

But more and more Germans are now asking the question: why should citizens work longer, while billions continue to flow to both Ukraine and a costly migration system that few still believe will pay for itself?

FACT BOX: Germany's welfare system under pressure

  • Pension system: The statutory retirement age in Germany is currently 67 years, but proposals exist to gradually raise it to 73.
  • Economy: Germany's GDP growth has fallen to below 0.5 percent during 2024–2025, resulting in high inflation and reduced industrial production.
  • Support to Ukraine: Since 2022, Germany has allocated over 40 billion euros in military, economic and humanitarian aid – the second largest contribution within the EU after the USA.
  • Migration: Around 17 million people in Germany have foreign backgrounds. Integration and social expenditures are estimated to cost the state over 30 billion euros annually.

Swedish preschool chain extracts millions – children get less butter

Welfare collapse

Published 2 September 2025
– By Editorial Staff
Tax funds finance preschool – butter is portioned out in the smallest possible amounts.
2 minute read

The Swedish preschool company Hagvidson has extracted millions in profits in recent years. Meanwhile, the company is rationing butter and sandwich toppings for preschool children.

Hagvidson currently owns over 21 preschools across Sweden, including facilities in Falun, Stockholm, and Uppsala. The preschool company has grown significantly in recent years and has purchased ten new preschools during this period. During the same timeframe, the owners – three men from the Örebro region in central Sweden – have extracted €6 million in dividend payments.

The men have taken director fees and salaries totaling around €900,000, which is primarily based on tax funds and municipal preschool funding.

Despite the million-euro profits, the company is strict about imposing restrictions on the children, according to an investigation by the Schibsted newspaper Aftonbladet. The restrictions primarily concern children eating too much sandwich toppings, but also include limits on paper towel usage for both staff and children.

We need to think about how much butter we put on the sandwiches and the amount of toppings – more is being used than usual right now. If we want to keep using Bregott (a popular Swedish butter-margarine blend), we need to be mindful of this”, states a protocol sent to employees, which the newspaper obtained.

Half a cheese slice

One solution from the preschool company is for adults at the table to portion out the butter to ensure children don’t take too much from the package themselves. Furthermore, only one topping per sandwich is allowed, something that employees at one of the preschools also confirm.

The children get half a cheese slice or half a thin slice of turkey on their sandwich and eat a maximum of two slices of bread – one soft and one hard per day – yet this still seems to be too much, the educator tells Aftonbladet.

Hagvidson’s CEO Michael Enghag declined an interview regarding the children’s restrictions on sandwich toppings, citing the company’s “communication policy”.

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