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You are here: Home i In Focus i In Focus 2025 i Theme: Joint challenges for Nordic municipalities i Rich in iron ore, poor in inhabitants

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13 mines

Sweden has a more than 1,000 year history of iron ore mining and metal processing. Photo: SGU

A municipality in a crisis

Pajala’s economy is in serious trouble, according to a story in Dagens Samhälle: 

"The municipality has borrowed millions just to maintain operations. But the crisis is not limited to finances. Last autumn, the municipality turned to SKR’s experts in governance and management for help regarding cooperation between the political leadership and the administrations. Twelve municipal managers have resigned since the beginning of 2024, and the major municipal trade unions have jointly issued a statement warning of a crisis of confidence between the administrative leadership and politicians."  

"The trust between politicians and civil servants in crisis-hit Pajala has hit rock bottom, according to SKR’s investigation. The municipality has once again appealed to SKR for help in resolving the situation. SKR’s expert describes Pajala’s situation as the worst since Haninge’s financial collapse in the 1990s."

Municipal Sweden
  • There are 290 municipalities in Sweden. 
  • Stockholm is the largest with 955,574 citizens (2024). 
  • Dorotea is the smallest with 2,294 citizens (2024).
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