World Wire
THE SWEDISH CRISIS</br></br>Swedish Prime Minister Ingvar Carlsson called the government to an extraordinary meeting late yesterday to discuss the serious situation in the labor market and austerity measures for the overheating economy, Swedish news reports said.</br></br>On the labor front, banks have been closed since Jan. 29, after over 60,000 bank employees were locked out. Strikes over pay are also in the offing for over 100,000 municipal workers, including traffic wardens, social workers, telephone operators and day-care-center workers.</br></br>As for the economy, Swedish Finance Minister Kjell-Olof Feldt is expected to outline an austerity program today. Sweden's high inflation rate, projected to reach 8.6% in 1990, combined with weak economic growth, has resulted in increasingly loud calls from opposition parties for structural measures to make the economy more competitive.</br></br>Analysts said the economic problems had divided the Social Democratic government. One faction, led by Mr. Feldt, advocates saving the economy, even if it requires tough measures. The other faction, led by Foreign Minister Sten Andersson, says it's more important to save the country's welfare system.