Eurozone benefits outweigh downsides for Sweden, report says
A report from the independent Swedish Free Enterprise Foundation said the benefits of the country joining the eurozone outweigh the risks. The Nordic nation joined the European Union in 1995 but a 2003 referendum rejected adopting the single currency with 56% voting against compared with 42% in support.
Joining the eurozone would result in an increase in trade across the border as well as foreign investment, Lars Calmfors, professor meritus of International Economics at Stockholm University and one of the report’s authors, said, while also giving the country more influence in Brussels over the development and integration of the continent’s capital markets.
“As I see it, the arguments for joining the euro have strengthened over time,” Calmfors said.” Sweden should, therefore, adopt the euro.”
Bulgaria is set to become the next country to join the eurozone, becoming the 21st nation to adopt the currency.
Of the flaws for Sweden, high levels of government debt across the eurozone could see the risk of costs for Sweden increase. Following the Russian invasion of Ukraine that pushed Sweden and some of its neighbours into joining NATO, Calmfors the value of further integration in the European Union has increased.
Sweden will have a general election in September 2026 and this issue is not likely to be a major one. The Moderates, the biggest party in the coalition supports an inquiry into it but have said that membership is a long way away. Other parties, including the Christian Democrats are also not fully committed one way or another.
The Liberal party is “firmly positive,” says Reuters, while the right-wing populist Sweden Democrat party is against it.
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