Low completion rate in upper secondary education is seen as a bigproblem in the Nordic countries. School failure has shown todramatically increase the risks for unemployment and labourmarket exclusion with severe consequences for both society andthe young person. This paper analyses national policy measures tocombat low upper secondary education completion rates inNorway and Sweden, often regarded as representing a socialdemocratic welfare model and a universalistic transition regime.The analysis demonstrates that although this issue has receivedextensive political attention, the two countries display somewhatdifferent policy designs. The Norwegian approach is proactive andtargeted while the Swedish policy is more general and directedtowards reforming organisational structures in upper-secondary education. In sum, our analysis demonstrates that nationalgovernance structures shape and influence policy design in thecontext of an increasingly diversified Nordic social democraticwelfare state regime.