Region Östergötland Unveils Economic Recovery Plan Post-Deficit

Östergötland plans economic recovery after previous deficits and layoffs.

Key Points

  • • Region Östergötland reported a loss of 700 million kronor last year.
  • • The new budget focuses on balancing the economy and improving healthcare.
  • • 900 employees were laid off in February due to financial issues.
  • • Regional leaders express confidence in future investments and services.

Region Östergötland is facing significant financial restructuring following a tumultuous year where it recorded a 700 million kronor deficit and laid off 900 employees. On May 26, 2025, regional leaders announced a new budget plan aimed at restoring economic stability over the next three years. The proposed budget focuses on achieving a balanced economy, with a strong emphasis on bolstering healthcare services.

Marie Morell, the chair of the regional council, expressed optimism about the region's recovery efforts, stating, "It has been a tough job, but it is rewarding to see results from our efforts." The leadership's strategic plan includes increasing the number of doctors at healthcare centers to enhance service delivery and overall preparedness. Per Larsson, group leader, remarked on the diligence shown by employees in turning around the region's fiscal health, which he believes allows for future investments and improvements in service.

The proposed budget marks a significant shift in priorities as the region seeks to break free from the negative trends that have previously hampered growth. Morell and Larsson credit tough decision-making as critical to establishing a more secure and sustainable future for Östergötland.