'Sweden ready for euro entry': report
TT/The Local · 27 Jan 2009, 10:31
Published: 27 Jan 2009 10:31 GMT+01:00
- Swedish town adopts euro (02 Jan 09)
- Is it time for Sweden to join the eurozone? (18 Dec 08)
- More ayes for the EU, fewer nays for the euro (16 Dec 08)
The report from the Swedish Centre for Business and Policy Studies (SNS) argues that the situation had changed in Sweden since the 1990s and that the country would benefit from joining the European single currency.
A government report carried out in the 1990s came to the conclusion that on balance Sweden would be better staying out of the monetary union (EMU) and so, while the country joined the European Union, the Swedish kronor was retained.
Harry Flam for SNS, who was one of the architects of the original report, writes in an article in Tuesday's Dagens Nyheter that the circumstances have changed.
"The report shows that Sweden has in practice had the same development of unemployment and inflation as if the country had been part of it (the single currency) from the beginning, but public finances would have benefited from the greater efficiency afforded by a stable cost base and increased trade."
Flam writes that a stable exchange rate would benefit Sweden. Swedish companies would avoid losing competitiveness as a result of fluctuating rates.
Currently 40-45 percent of Sweden's trade is conducted through the eurozone countries.