The government has concluded that Sweden's social-welfare system, built over generations to protect citizens from cradle to grave, now threatens the national well-being.
Trimming began even under the Social Democrats, who dominated Swedish politics for six decades, and the pace has quickened under a center-right government that took over in September 1991.Many beneficiaries are disgruntled. Sweden has Western Europe's largest public payroll, and its citizens are accustomed to benefits ranging from free hospitalization, job retraining and subsidies for child care and home mortgages.
Constantly rising productivity provided the money to pay for it until, in recent years, the incentive to work was eroded by high taxes, generous vacations, parental leave and sick pay.
Prime Minister Carl Bildt's government is cutting taxes so Swedes will have more money to take care of themselves. Bildt wants to eliminate some public jobs through attrition and encourage private business to expand payrolls.
Although the Swedes voted for change last year by turning out the Social Democrats, many are ambivalent about cutbacks that affect them directly.
"Interest rates have increased; rents increased," said Britt-Marie Persson, who runs a day-care center. "The sales taxes increased, so I have had to lower my standard of living."
She acknowledged, however, that "we have been living beyond our means in Sweden."
The Swedish welfare formula was a blend of capitalism and socialism.
For many years, big companies producing high-quality exports enjoyed protection and stability. High taxes redistributed wealth, and a growing government payroll guaranteed virtual full employment.
By the late 1980s, the economy had begun to falter, and the Social Democrats had cautiously begun to pare the welfare program.
To foster competition in state monopolies and improve efficiency, patients were given free choice of hospitals, and some students could pick the school they wanted to attend. The idea was that people would flock to the best-run institutions and the inefficient ones would close.
The Social Democrats also lowered taxes, but it was not enough to keep them in power.
Bildt's program is intended to make the economy more open, competitive and productive before Sweden joins the European Community in 1995, but trimming or eliminating cherished benefits is not a popular course.
Among the welfare fundamentals that remain untouched are up to 60 days off per year at full pay to care for sick children, guaranteed access to medical care and a vast system of retraining and benefits for the unemployed.