The Swedish nuclear energy program had been enacted by the Riksdag in 1975 which entailed an expansion to 13 nuclear power plants in total by 1985. The Riksdag had also decided that energy policy was to be re-evaluated in 3 years and that the safety of nuclear power was to be investigated. The previous Fälldin Cabinet had instated a committee with the task of evaluating nuclear safety. Minister for EnergyCarl Tham was working on drafting a government bill regarding energy policy, with Social Democrats Ingvar Carlsson and Birgitta Dahl following his work closely. Both the Social Democratic and Moderate parties held positive views regarding nuclear power and it was assumed that the government wouldn't have any difficulties passing the bill. However, following the Three Mile Island accident, everything changed. While Olof Palme, the Social Democratic leader, had criticized the Fälldin cabinet for unnecessarily delaying the expansion of nuclear power in the past, Palme and his party did a complete turn-around on the issue, demanding a popular referendum to decide the future of nuclear power on 4 April 1979. During the remainder of the spring, the parties discussed how a popular referendum was to be performed and what choices voters would have. Eventually, it was decided that voters would be able to pick three choices, all of which revolved around abolishing nuclear power at various rates. Ingemar Mundebo, the Minister for the Economy and the Budget, was working on a proposal to lower the marginalskatt tax and enacting an upper limit to the tax. The government expected the proposition to pass with the support of the Centre Party and Moderates. In the spring of 1979, however, the Centre Party voted against the proposal, since they found inconsistencies in financing the proposal. The bill, thus, did not pass. In December 1978 it was revealed that while Sweden was supporting the East Timorindependence movement, the government was simultaneously allowing the export of arms to the occupying Indonesian forces. The Minister for Trade Hadar Cars stated that this was completely allowed. The government also managed to pass several reforms, such as increased parental insurance, corporate tax reforms and a new education plan. Child corporal punishment was legally abolished during the reign of the Ullsten cabinet.
