Health problems

On 8 July 2002, Persson fell while riding his bicycle at Harpsund and broke his left clavicle.^[2] Following this accident he was unable to lift his left arm for some time and almost fainted during a speech in Almedalen on 10 July 2002 and after a meeting with British Prime Minister Tony Blair on 15 July 2002.^[2][3] Present with him during the accident was Pär Nuder, Minister of Finance, and Sten Olsson, State Secretary. Pär Nuder wrote in his book Stolt men inte nöjd ("proud but not satisfied"), released in 2008, that Persson had fallen while riding his bicycle because he was drunk after consuming large amounts of alcoholic beverages.^[4] Persson said in response to these claims: "I can't exactly recapitulate the event but I can say as much that I'm surprised that Pär Nuder remembers anything".^[5][6]

In September 2003 Persson was diagnosed with hip osteoarthritis and surgery was recommended. He chose to go through Sweden's public health-care system instead of seeking private treatment; he was put on a waiting list, and finally received a hip replacement operation in June 2004. During that 9-month period, he walked with a limp and reportedly was on strong painkillers; he had to cancel several official trips due to the pain he was in.^[7]

National politics

In 1989, he was made Minister of Schools in the Ministry of Education during the first Ingvar Carlsson cabinet, until the election in 1991 when the Social Democrats were voted out of office. Persson was one of the brains behind the "Persson-plan" which was presented in 1994 targeting the prevailing economic situation. Sweden at the time still suffered from the recession which began during the early nineties, high unemployment rates and a huge budget deficit. Prime minister Carl Bildt relied at the time on a fragile coalition between the Moderate Party and three other liberal or conservative parties with a strained degree of cooperation. The outcome of the 1994 election proved a success for the Social Democrats when they gained more than 45 per cent of the votes.

Upon returning to government in 1994, Persson was made Minister for Finance, a post he held until 1996. As Minister of Finance much of his job was focused on attaining a sound financial balance in the economy. Persson often emphasizes that he "cleaned up" after the Bildt government.^[8][9]

During his time at the Finance Ministry he followed 10 "Commandments" as his guiding lights in his job. Among of these "Commandments" was one in particular which became famous in Sweden, "one who is in debt is not free" ( in Swedish : "Den som är satt i skuld är icke fri" )

Party leader and Prime Minister

In 1996, Persson was chosen over Mona Sahlin, the Deputy Prime Minister, to lead the country after Carlsson retired. Persson began where he left off as finance minister – by continuing to spearhead government efforts to alleviate Sweden's chronic budget deficit. In 1994, the annual shortfall was about 13 per cent of GDP. But, after implementing welfare cuts and tax increases, it fell to a projected 2.6 per cent of GDP in 1997, which put Sweden in a position to qualify for the European economic and monetary union. However, the cost was high: unemployment rose, hovering persistently around 13 per cent, then suddenly fell to about 6.5 per cent the same year.

From 1998 to 2002

In the 1998 election the Social Democrats gained even fewer votes than in the 1991 election, when they got voted out of office. Thanks to support that came primarily from the Green and Left parties, he managed to retain office but had to rely on support from at least two parties in the parliament. Later the same year, the government announced proposals for far-reaching cutbacks in Sweden's military spending.

The year 1999 was seen by the Social Democrats as the vindication for the tough fiscal policies pursued since they came to office in 1994: GDP growth was estimated at about 3.6 per cent, well above the European average, inflation remained subdued, and the budget was in surplus for the first time in the 1990s. The party proposed income tax cuts for 2000.

In 2000, a strong economy, falling unemployment, and the impact of the Internet appeared to breathe new life into the “Swedish model” of a welfare society, one that had seemed dead and buried during the deep recession of the early 1990s: growth reached 4 per cent, and unemployment fell to the lowest level in years. The Social Democrats, however, failed to capitalize on the economic boom. Around this time, the Persson government began reversing cuts by boosting child support.^[10] Opinion polls showed the party struggling to return to its post-election 36 per cent approval level. Instead, the smaller Left Party, a Social Democrat ally, picked up support with its program of increased public spending and opposition to Swedish membership in the European single currency.

Economically, the bursting of the dot-com boom by 2001 had marked implications for Sweden. Ericsson, the world's largest producer of mobile telecommunications equipment, shed thousands of jobs, as did the country's once fast-expanding Internet consulting firms and dot-com start-ups.

Gross domestic product growth of 3.6 per cent in 2000 was expected to have fallen to around 1.5 per cent in 2001, and only a minor recovery was forecast for 2002. The government was hoping that tax cuts, subsidies on child-care expenses, and wage increases would boost consumer confidence with real disposable income to increase by 5.4 per cent. Exports were also expected to pick up in 2002, helped by the weakness of the Swedish krona, which hit record lows against both the dollar and the Euro in 2001.

2002 election

In the 2002 election the Social Democrats increased their number of seats in the parliament primarily at the expense of the Left Party. Persson continued to lead a minority government instead of forming a coalition, despite earlier demands from his supporting parties to participate in the government.

2006 election

After the defeat at the general elections of 17 September 2006, Persson immediately filed a request for resignation, and declared his intentions to resign as party leader after a special party congress in March 2007.^[11] On 13 April 2007, Persson also announced his resignation from the Riksdag (where he had served 1979–1985 and from 1991) to be succeeded by Caroline Helmersson Olsson from his native Vingåker.

ITF: Holocaust Education, Remembrance, and Research

In 1998, Prime Minister Persson initiated international talks on the establishment of an inter-governmental organisation for Holocaust education, which resulted in the founding of the Task Force for International Cooperation on Holocaust Education, Remembrance, and Research (ITF). The ITF now has 27 Member States. He had already raised the issue of Holocaust education within the Swedish Parliament, initiating a national information campaign with the aim for 'facts about the Holocaust to form the platform for a discussion on democracy, tolerance and the fact that every human was of equal value.'^[18] The Campaign was entitled Living History, or Levande Historia.