Response to interpellation 2025/26:324 on measures against illegal work
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
M considers black market work to be an important part of the work to choke the criminal economy 1 and that the government is implementing several measures to stop it 1. M emphasizes that authorities are actively working with targets to combat fraud 2, are taking a proper stand against crime in the labor market 2 and are strengthening identity checks through biometrics 3. M argues that work is being done step by step with legislation, resources, and agency cooperation to tighten the taps on the criminal economy 4. S considers that black market work exploits workers and distorts competition 5. S argues that the government does not show interest in stopping subcontracting chains 6. S considers it regrettable that the government reduced state grants 7. S wants to allocate 75 million kronor to Skatteverket 7 and argues that more tools are needed, such as strengthened supervision, limitation of subcontracting chains, and a Swedish mafia law 7.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! Mikael Damberg has asked me which measures I consider to be most prioritized in the future to combat illegal work.
When the government took office, a major offensive was launched to combat organized crime and choke off the criminal economy. Stopping undeclared work is an important part of that work. Undeclared work constitutes a significant source of income for organized crime and causes large tax losses annually and often involves substandard working conditions, health risks, and poor development opportunities for the workers who are exploited. In companies that use undeclared work, other forms of crime in the workplace and regulatory violations almost always occur as well.
The government has therefore implemented several measures to stop illegal work. The Swedish Tax Agency, for example, has received better opportunities to monitor companies that apply for or are approved for F-tax, and the government has submitted proposals for new rules that tighten the authorities' controls against value-added tax fraud. The government has recently decided on a bill that will give the Swedish Tax Agency better control opportunities when companies' accounting is stored in the cloud. The government has also increased resources for inter-agency cooperation against crime in the labor market, where the Swedish Tax Agency participates in joint agency controls to combat illegal work. The government has also improved the opportunities for different agencies to cooperate and exchange information. Within the Government Offices, proposals are also being prepared for improved control tools for the Swedish Tax Agency against companies that provide rot- and rutar-work and expanded opportunities to use personnel lists in controls.
These are just a few examples from a long list of ongoing measures. The government continues to work at a high pace on several fronts to combat not only illegal work but organized crime and the entire criminal economy.
(ANDRE VICE TALMANNEN: It is therefore Marie Olsson who has submitted the interpellation.)
Marie Olsson (S)
Mr. Speaker! That is correct, it is Marie Olsson and not Mikael Damberg, even though I can understand that the Minister for Finance has Mikael Damberg in mind!
I would like to begin by thanking the Minister for the answer to my interpellation. According to the report Black Figures – an ESO report on the extent of the criminal economy by the Expert Group for Studies in Public Finance, they estimate that the criminal economy turns over a total of 352 billion kronor per year in Sweden. They argue that they have calculated low and that the turnover is likely even higher.
The largest category in the criminal economy is the black economy, which includes undeclared work and fraud against the state. Undeclared work is estimated to generate a staggering 189 billion kronor per year, which is a full 54 percent of the criminal economy in Sweden. Undeclared work is used by unscrupulous companies that both exploit workers and totally distort the competition for all serious companies that behave and do the right thing.
The Swedish National Audit Office has recently conducted a review of the Swedish Tax Agency's measures against undeclared work. They conclude that there are deficiencies, and therefore they submit recommendations for measures. The Government considers, despite this, that there is no reason to take any measures on the basis of the Swedish National Audit Office's report.
One way to clearly increase the pressure on unserious companies that threaten fair competition through, for example, the use of black labor is to carry out more controls. This is pointed out, for example, in the state's public inquiries regarding more effective control possibilities in the systems for rot, rut, green technology, and personnel lists. It is also stated there that the number of controls has decreased significantly. Even though the Swedish Tax Agency has better tools for risk assessment, it is extremely important that controls are carried out to reach the criminal economy.
Mr. Speaker! In October last year, I participated in a panel debate at Frisörföretagarna. It is an industry that, along with several other industries, is heavily affected by undeclared work. There were a large number of serious hairdressers who do the right thing, and what they are requesting is more inspections from Skatteverket. The inspections remove unscrupulous operators who ruin the industry. Even the expert from Skatteverket who participated stated that they would need to carry out significantly more inspections but that the resources are insufficient, and also the Riksrevisionen's report on Skatteverket's measures against undeclared work mentions that more inspections are needed. Despite all this, the government therefore assesses that no further measures are needed.
The Minister for Finance says in his response that the government has implemented several measures to stop undeclared work and that, as we who sit in the Committee on Taxation know, work is being done on proposals for improved control tools for the Swedish Tax Agency against companies that provide exactly rot- and rutarbeten.
After the measures that the government has implemented, undeclared work continues on a large scale in Sweden – a staggering 189 billion, probably more. From that perspective, I nevertheless want to ask the Minister for Finance what would be required for the government to consider that further powerful measures need to be taken to tackle the extensive black economy and undeclared work.
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! Thank you, Marie Olsson, for the interpellation! I am sorry that I misspoke.
This debate and these questions are important for several reasons. Very many people are exploited and suffer in these environments with work-life crime. Another reason is, of course, that it distorts the competition for all honest business owners who struggle every day with their electrical company or whatever it may be and makes it much harder. An additional reason why it is so important to work with these issues, as Marie Olsson also highlights, is gang crime. We easily imagine youths in the suburbs, but it is about Bandidos and many other large gangs that have now moved behind the computer and start companies that are not companies or companies that one empties and thereby cheats as much money as possible out of the systems. There is such a breadth in this. Regardless of the reasons, it is important to work against just this.
I understand that Marie Olsson wants the government to continue doing even more. She can rely on the fact that we will do so. We have a violent pace for much of the legislation that the authorities have asked us to come up with. They are skilled and know which legislation needs to be changed. This applies, for example, to the fact that one previously was not allowed to share confidentiality-protected individual data, but it also applies to many other parts.
"Agency cooperation" is perhaps not the most beautiful word for me, even if many directors-general think so. But during these three years, I have been struck by how fantastically well agency cooperation works. Many of our agency heads have simply decided to solve the problems. Then one must work together, and they truly do, which I think is fantastic to see. Then there is much more to do, just as Marie Olsson says.
In the ESO report, the amounts were even higher than we previously thought. No one knows exactly, of course, but we are talking about enormous sums of money. It is money that enables shootings, bombings, and the recruitment of 13-year-olds into very serious violent crimes. It also enables grossly criminal people to live a life of luxury on a sunny coast somewhere. Therefore, we are going very hard on the money specifically.
There was a time when politicians mostly talked about party-related drug use. Drugs are obviously a part of this. But it is so much more that is happening. Marie Olsson highlights, among other things, work-related crime and illegal work.
What is the government doing then? Just as I said, the authorities are working actively. We have also given them various targets that they should work together with to tackle the fraud. There will be legislative changes, such as those concerning the control possibilities for companies that have approval for F-tax.
The F-tax certificate has also been a path. We wanted to make it easy to become an entrepreneur, but it has also been far too easy for criminals to operate criminal businesses. Here, we have taken a proper hold to address crime in the working life.
I will of course not give up until the levels are significantly much lower than they are today, so that fewer people are exploited and fewer honest entrepreneurs experience that there is unfair competition. The work is ongoing and will continue. We have a high tempo and will continue with it until we have cracked the serious crime so that people do not get caught in these nets.
Marie Olsson (S)
Mr. Speaker! Many of the proposals being presented now and the investigations that have been conducted in connection with economic crime come from the Social Democratic government. But it is only now that they are being implemented and decided upon in the Riksdag.
The criminal economy in Sweden is, as has been said, extensive, and as the Minister says in his reply to the interpellation, it is closely linked with gang crime. It feeds it with money on a large scale. The gangs know where they can squeeze money out of our tax revenues. They do this, for example, through companies with undeclared work or VAT fraud.
We need to choke off all possibilities for the gangs' financing. Strong measures against illegal work are one of the measures. In addition to that, it is extremely important that we ensure that people are not exploited and that unscrupulous companies do not take over at the expense of serious companies that do the right thing. It must pay to do the right thing.
The state and the authorities also need to work together with the serious companies to provide information. You probably cannot get a haircut for 200–300 kronor. You also cannot get your nails done for the same amount. You cannot get your car washed inside and out for 200 kronor. Everyone who purchases services for underprices must be aware that they are contributing to the criminal economy, to the exploitation of labor, and to reduced tax revenues for both municipalities, regions, and the state.
Then we can address the large-scale tax evasion that occurs because we cannot even within the public sector keep track all the way through the construction industry with all the sub-contractor leads that are permitted today. Not even we can ultimately keep track of whether human trafficking and illegal work occur when we build within the public sector. Much less can the private sector have full control.
We could stop this by limiting the number of subcontracts that are allowed to exist. But here, too, the government shows no interest. Within the construction industry, the amount of undeclared work is actually increasing. It must be stopped.
The system of exploitation in the form of undeclared work, tax evasion, and welfare-related fraud thus constitutes the economically dominant part of the criminal economy. It creates significant room for other criminal activity. By providing income, undeclared work, false employment, fake invoicing, and welfare fraud can finance and support gang crime, just as the minister also points out.
The activities are used to create legitimate facades as a cover for recruitment into gangs, to build capital bases that enable investments in more advanced crime, or to strengthen the organized crime's control and stability by offering regular income to both members and relatives.
In this way, system exploitation constitutes not only an economically dominant part of the criminal economy but also a structural engine that enables, reinforces, and finances other crimes. Organized crime often attempts to structure its activities by combining low-risk-based and system-threatening activities, such as undeclared work, with more risky types of crime in order to create stable revenues and reduce the organized crime's vulnerability.
The government has said that it will take a crack down on organized crime. My question to the minister is once again: Does the minister see that, in addition to the proposals that are now on the table, further measures need to be taken to stop exactly the undeclared work?
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! Thank you again, Marie Olsson, for the questions! I can sign off on most of what Marie Olsson says. We share the problem picture, which is quite brutal in that people are being exploited and competition is being distorted. The problem picture also obviously concerns the money – the gangs do not "just" sell drugs but also start companies or use companies as criminal tools and much more to get access to money. In that way, they acquire money and means that they should not have.
Marie Olsson asks me if I can imagine doing more. Yes, we are going to choke the criminal economy. That is truly our goal, because without doing so we cannot fully and completely tackle gang crime. That is why we are now ensuring that identity checks are strengthened in various ways, for example by using biometrics more.
That is also why the Swedish Tax Agency, the Swedish Customs Service, and the Swedish Enforcement Authority, for which I have responsibility, have had to work with a common goal to pool resources and work together even more against the criminal economy. The Swedish Customs Service, for example, has been given expanded opportunities and powers to combat crime and make seizures. It has become possible to issue fines remotely, which is not insignificant, and to seize criminal profits.
Step by step, we are turning down the taps on this economy. The purpose is to make Sweden safer for honest people who go to work every day or own a company, but also to protect people who end up in such activities. It could be about trafficking or other forms of exploitation.
I completely agree with Marie Olsson that we all have a responsibility. As the minister for these agencies, I have a great responsibility, and I take that. But we also each have a responsibility. Just as when one buys a pretty dress from China for 80 kronor, one needs to consider who profits from this. One has a responsibility to consider whether it is white or black if one gets a haircut for 100–150 kronor. One can often come to that conclusion oneself.
Even though these are tough times and many are having a hard time, one must also be aware that if prices seem a bit too good, they are also often too good to be true.
We have a responsibility together, and I will take my responsibility and continue to work towards this. I will do what I can in this role to reach and strangle the criminal economy. I also know that the parties in the labor market are working actively to reach and protect people who have ended up in a terrible situation and are being exploited.
Marie Olsson (S)
Mr. Speaker! It is true that the parties in the labor market are trying to work together. Unfortunately, the government reduced the state grants for precisely that joint work, which is regrettable.
Regulatory violations that yield significant economic profits, such as illegal work, can often be addressed faster and more cost-effectively through controls. Sanction fees, license revocations, and payment guarantees can reduce the profitability of the criminal economy. In that case, more controls are needed. This requires strengthened supervision within public procurement, including transparent requirements on owners in subcontractor chains and limitations regarding how many subcontractor levels may exist, as well as an opportunity to exclude companies that exhibit systematic regulatory violations from participating in public procurement at all.
We simply must have more tools to stop illegal work. We Social Democrats want to provide an additional 75 million kronor to Skatteverket specifically for the control work, because we see that it is needed.
Since the Minister now has the last word, I would like to express a hope, and that is that the government truly sees crime involving undeclared work within the criminal economy as acute and that it is seen that more measures need to be taken to stop it. In that way, one can also stop the inflow of money to organized crime, stop the exploitation of labor, and give serious companies the opportunity to compete on equal terms.
It is a matter of stopping crime regardless of what form it takes. One measure to achieve this is to limit the number of sub-contractor leads within the construction industry and also, in fact, to introduce a Swedish mafia legislation. Through such a law, everyone involved in criminal schemes would have a collective responsibility, and we can judge entire networks and organizations based on patterns of organized criminal activity. We would need such legislation now.
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! Marie Olsson can feel secure that we are working step by step with legislation, with resources, with agency cooperation and of course also with communication and dialogue with the parties to do everything we can to turn off the taps to the criminal economy. With this, I would like to thank you for this debate and wish you a pleasant weekend!
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.