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The stock market's sugar high, fueled by juicy profits and falling taxes, is being tempered only somewhat by fear that the Federal Reserve will take the punch bowl away.
Despite growth outdoing the eurozone since the financial crisis, a housing boom and falling taxes, Löfven hopes to capitalise on voters seeking a return to Sweden's older image of cradle-to-grave welfare and job security.
Now economists say the economy will grow by 1% this year, and Stefan Bergheim of J.P. Morgan in Frankfurt expects a budget deficit of more than 2%.Normally, falling taxes and rising spending act as "automatic stabilisers" that help set the economy right.
Neofascism is unlike its 1930s predecessor, in that today a global elite of the absurdly wealthy and influential is steering an ideology that wants a shrinking government, falling taxes on high incomes, and authoritarian control over recalcitrants, nonconformists, collective bodies and "losers" in the market society, including the disabled and young unemployed.
Falling taxes for the rich and an increased use of tax havens have helped widen income inequality, Oxfam said.
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With growth weak and prices falling, tax revenues plunged.
But falling tax revenues have swiftly pushed the public finances into the red.
Both the French and German governments have also been hit by falling tax revenue.
Both have high unemployment, falling tax revenues and gaping budget holes.
Recession and falling tax revenue may undermine Mr Levy's adjustment.
There were other tactics for sustaining spending, despite falling tax revenue.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com