The Swedish government also has plans to involve state pension funds to boost large-scale infrastructure investments.
The high-speed railway project would link the country's three biggest cities. The total project investment is estimated to be between SEK140 billion (US$16.9 billion) and SEK160 billion (US$19.3 billion).
According to the European Commission, Sweden's investment level as a percentage of GDP has risen close to its pre-crisis level: it is at its highest average since 1993 and when compared to similar EU economies. Investments in road and railway infrastructure could help alleviate some of the constraints caused by the housing shortage linked to rising urbanization and structural inefficiencies.
European Commission Vice-President Jyrki Katainen commented:
"Sweden is known for many successful businesses and brands that have been key to economic growth. The EU internal market has been crucial for their success which is why I am confident that Sweden will continue to promote a strengthened Single Market. The Investment Plan for Europe offers huge opportunities for new projects and businesses and I want to encourage all project promoters in the private sector to make use of this possibility".