Europe

Sweden
Last reviewed: 27 June 2008

Country information

See entire profile

Area: 175,500 sq miles (450,000 sq km). Nearly 2.5 times the size of the UK
Population: 9 196 227 (March 08)
Capital City: Stockholm (795,163) (Greater Stockholm area 1,949,516); other cities - Gothenburg (493,502 ), Malmö (280,801 ) (Dec 07).
People: 90% Swedes, 3% Finns, 0.15% Sami (indigenous Lapp inhabitants)
Language: Swedish, but English is widely spoken.
Religions: Lutheran 87%, Roman Catholic, Orthodox, Baptist, Muslim, Jewish, Buddhist
Currency: Swedish Krona (SEK)
Major political parties: Social Democrats (130 seats in Parliament / Riksdag), Moderate Party (97), Centre Party (29), Liberal party (28), Christian Democrats (24), Left Party (22), Green Party (19).

Government: The present Government was announced in the Swedish Parliament on 6 October 2006 by Fredrik Reinfeldt of the Moderate Party. Mr Reinfeldt leads the majority government of the Alliance, including the Moderate, Liberal, Centre and Christian Democrat Parties.
Head of State: King Carl XVI Gustaf
Prime Minister/Premier: Fredrik Reinfeldt
Foreign Minister: Carl Bildt
Membership of international groups/organisations: Sweden is an active member of most of the main international organisations. One notable exception is NATO.

ECONOMY

GDP: US$ 352 billion, (2005 est.)
GDP per head: US$ 42,144 (2006 est.) (SEK 310,800, 2006 figure)
Annual Growth: +2.8% (March 2007) 2.5.0% (2008 est.), 2.5% (2009 est.)
Inflation: 3.4% (April 2008) (2.8% 2009 est.)
Unemployment: 0% (April 2008) (Sweden uses ILO definition as of October 2007)
Major Industries: Forestry, mining, agriculture, engineering and high tech manufacturing, telecommunications.
Major trading partners: Germany, UK, USA.

The Swedish economy continues to outpace the Eurozone. GDP growth - fuelled by strong exports and consumer spending was 2.8% in 2007 and is expected to be 2.8% in 2008. Open unemployment is now at 6.0% (April 2008; NB! New ILO definition covering the 15-74 age range), lower than many European countries, but the number does not include a large number of people in labour market programmes or on long-term sick leave. Youth unemployment is the second highest in the EU (after Italy). In Sweden taxes are higher, benefits more generous, and the labour market more highly regulated than in many EU countries. The Central Bank is independent. Timber, pulp and paper, iron ore, copper and uranium have provided the basis of Sweden's economic growth since the 1920s.

Success in manufacturing then followed, with companies such as Volvo, Saab, Electrolux and Ericsson becoming international household names. Swedish design has attracted much attention on the international scene and has been brought to the masses by companies like IKEA and clothes chain H&M. Sweden is the second largest exporter of pop music in the EU, a trend started by ABBA in the 1970s.

Sweden was a leading country during the IT boom in the late 1990s and suffered when the bubble burst. The sector has now partly recovered. PC and mobile phone ownership, IT literacy and Internet usage are all among the highest per capita in Europe.

HISTORY

Recent History

The EU dominated the 1990s. The Social Democratic government applied for membership in 1991 and the successor Conservative Government reaffirmed Sweden's commitment to the aims of the EU, including its provisions for a Common Foreign and Security Policy. This was significant in light of Sweden's longstanding unilateral commitment to neutrality. The decline in East – West tension had prompted a debate in Sweden as to what 'neutrality' now meant in practise. The resulting consensus was that Sweden's neutrality was compatible with the EU's goal of a Common Foreign and Security Policy.

In 1995 Sweden became the 15th member of the EU.

In 1996 Social Democrat Göran Persson became Prime Minister after his party colleague Ingvar Carlsson stepped down. Persson then won elections in 1998 and 2002, both times forming a minority government, supported in the Riksdag by the Left Party and the Greens. In a 2003 referendum, Swedes rejected adopting the Euro.

None of the two biggest catastrophes in Sweden’s recent history have taken place on Swedish soil. In September 1994, the Estonia ship sank in the Baltic Sea. More than half of the passengers were Swedes. In the 2004 tsunami in Southeast Asia, Sweden was one of the hardest hit non-Asian countries. Around 550 Swedish tourists are known to have died and thousands returned home with injuries. The Swedish Government was slow in reacting to the needs of the Swedish victims and was heavily criticised by the media and the public.

Two dramatic murders have shaken Sweden’s normally calm society in recent years. In 1986, Prime Minister, Olof Palme, was shot in central Stockholm by an unknown gunman. Sweden was plunged into shock, which resurfaced in 2003 when Foreign Minister Anna Lindh was stabbed while shopping in a Stockholm department store. Six months later a 25-year old Swede of Serbian origin, who had acted on impulse, was convicted of her murder. Neither Palme or Lindh had body guards with them at the time of the attacks. Security around top politicians has since been tightened but Sweden is still a very open country and the public has easy access to politicians.

Longer Historical Perspective

From AD500 – 1100 the realm of Sweden developed from a loose union of two main tribes – the dominant Svear in the East and the Goths in the West. The Vikings (AD700-1000) colonised the Eastern Baltic, trading and raiding as far as Constantinople. Finland was incorporated in the 13th century and remained a Swedish dependency for 500 years. In 1397 Sweden joined the Kalmar Union together with Norway and Denmark under the Danish Crown. It finally broke away in 1523 to establish its own monarchy under King Gustav Vasa.

For the next 200 years Sweden engaged in almost continuous wars with its neighbours in a struggle to gain and assert its Baltic supremacy. Defeat in the Great Nordic War against Denmark, Saxony, Poland and Russia (1698-1720) led to dismemberment of the Swedish empire and eclipse of its great power ambitions.

During the Napoleonic Wars (1805-1814) Sweden was allied to Britain against France. By the Treaty of Kiel in 1814 Sweden ceded Finland to Russia but gained control of Norway from Denmark.

The 19th century was a period of liberal reforms, population growth and rapid industrialisation. It saw the rise of Pan-Scandinavian nationalism and Norwegian separatism. In 1865 Sweden replaced the traditional Four estates by a bicameral assembly (reduced to one chamber in 1971). In 1905 Norway withdrew from union with Sweden.

During World War One (1914-8) Sweden remained neutral along with Norway and Denmark. In 1920 the first Social Democrat government took office. And from 1932 the Social Democrats were to remain continuously in power for 44 years. During World War Two (1939-45) Sweden again remained neutral but – until 1943 – conceded Nazi Germany transit facilities for arms and troops.

In 1949 Sweden decided not to join NATO, in contrast to Norway, Denmark and Iceland. Instead it developed its present doctrine of neutrality supported by self-reliance in defence. In 1952 with Iceland, Denmark and Norway, Sweden founded the Nordic Council (Finland joined later in 1955).

BBC Timeline of Sweden

INTERNATIONAL RELATIONS

Immigration

Sweden has traditionally taken a generous approach to asylum seekers, which has helped to contribute to a growing immigrant population. The main source of post war immigration was Greece and Italy. Refugees from the former Yugoslavia followed in the 1990s, followed again by Kurds (Iraqis), Iranians and Somalis. Many immigrants live in large suburbs outside Stockholm, Gothenburg and Malmö and their existence can go unnoticed by the casual visitor. Unemployment is high among the more recent immigrants, many of whom struggle to learn Swedish and can feel excluded from mainstream society.

Sweden's relation's with the international community

Swedish security policy is based on the premise that national security is best served by staying free of alliances in peacetime in order to remain neutral in the event of war. Sweden participates actively in the United Nations - including as a member of the Security Council in 1997 and 1998. It has given substantial support for peacekeeping operations, such as the Nordic Battalion in Bosnia. Sweden is a member of NATO's Partnership for Peace and the Euro-Atlantic Partnership Council. In 2006, the government reached its goal of giving one percent of the GDP to Foreign Aid, surpassing the EU target of 0.7%.

Sweden has close relations and historical links with its Nordic neighbours, and co-operates with them formally in economic and social matters through the Nordic Council of Ministers, and informally in political matters through direct consultation.

Sweden also values its relations with the Baltic States, where historical and cultural links are strong. Since the Baltic States regained their independence, Sweden has given considerable aid and technical assistance, and has promoted their accession to the EU. Sweden is a member of the Council of Baltic Sea States.

Sweden's relations with the UK

The current British Ambassador to Sweden is Andrew Mitchell. Staffan Carlsson is the Swedish Ambassador to the UK.

Bilateral relations

The British Community in Sweden is approximately 15,000 strong. The Swedish community in London is approximately 40,000 (no figure available for the whole of the UK)

Cultural relations with the UK

British Council: Sweden
The Swedish Institute

Recent Visits

Inward

Europe Minister Cecilia Malmstrom visited the UK on 27 March 2008
Environment Minister Andreas Carlgren met Hilary Benn and Phil Woolas in London on 10 March 2008
PM Fredrik Reinfeldt met PM Brown (and Opposition Leader David Cameron) in London on 26 February 2008
Migration Minister Tobias Billström met his opposite number on 11-12 December 2007
Minister for Integration and Gender Equality Nyamko Sabuni met her opposite number on 28-29 November 2007
Opposition leader, Mona Sahlin, Social Democrats, met Gordon Brown on 15 November 2007
Foreign Minister Carl Bildt met Foreign Secretary David Miliband on 10 October 2007
Foreign Minister Carl Bildt met Foreign Secretary Beckett on 15 March 2007
Prime Minister Fredrik Reinfeldt met Prime Minister Blair in London on 6 March 2007
Minister for Finance Anders Borg met with Chancellor Brown on 7 February 2007
Prime Minister Göran Persson met Tony Blair in London on 21 June and 8 December 2005 and 14 March 2006.
Finance Minister Pär Nuder met with Chancellor Gordon Brown in London on 26 January 2005
Speaker of Swedish Parliament Björn von Sydow visited on 10-11 October 2004

Outward

Foreign Secretary David Miliband visited Sweden on 17 March 2008 and met his opposite number Carl Bildt
Visit by Parmjit Dhanda (DCLG Minister) on Fire Emergency and Countering Radicalisation 12 - 13 March 2008
Cabinet Office Minister Ed Miliband visited Stockholm and Malmö on 12-14 February 2008
Home Office Minister Vernon Coaker, Deputy Minister for Women Barbara Follett and Solicitor-General Vera Baird, visited Stockholm on 10-11 January 2008
David Lammy, Minister for Skills (PUS), visited Stockholm 17-18 September 2007
As Climate Change Minister, David Miliband, attended the Midnight Sun Dialogue on Climate Change at Riksgränsen in June 2007
Minister for Science and Innovation Malcolm Wicks visited Stockholm 31 May-1 June 2007
Lord Greville Janner visited Sweden on 29 May 2007
Prince Michael of Kent visited Sweden on 16-18 March 2007
As Minister for Europe, Douglas Alexander visited Stockholm on 13 March 2006
The Chancellor Gordon Brown visited Gotland in July 2005
As Secretary of State for Defence, Dr John Reid visited Sweden on 20 June 2005
As Secretary of State for Environment, Food and Rural Affairs, Margaret Beckett visited Stockholm on 15-16 June 2005
The Duke of York visited Sweden on 7 September 2004
As Minister for Europe, Dennis MacShane visited on 3-4 March 2004
As Foreign Secretary, Jack Straw attended Anna Lindh's memorial service on 19 September 2003
Tony Blair visited Stockholm on 5 September 2002

GEOGRAPHY

Cities:

Capital - Stockholm (795,163); other cities - Gothenburg (493,502 ), Malmö (280,801 ).

TRADE AND INVESTMENT

Trade and Investment with the UK

Trading links, which go back centuries, and are strong.
Sweden is the UK's ninth largest export market and the UK is Sweden's third largest supplier.
Major UK exports to Sweden electrical machinery, telecom equipment, road vehicles and petroleum products.
Major UK imports from Sweden: paper, board and pulp, telecommunications equipment, road vehicles, cork and wood, iron and steel and general industrial machinery.
Almost all of Sweden's world-class companies have invested in Britain. There are a total of 700 Swedish firms in the UK. Both Ericsson and the post-merger Astra/Zeneca have established headquarters there, fuelling Swedish domestic concerns that this may be a trend.
There are over 370 UK-owned firms in Sweden.

UK Trade Investment Country Profile: Sweden

POLITICS

Sweden’s political centre stands more to the left than the UK, but to the right of France. The Social Democrats have held power during most of the post-war period. The immediate years after the way witnessed the construction of the comprehensive welfare state under Prime Minister Tage Erlander who held office until 1969.

The conservative Moderate party is very pro-EU. Traditionally a strong campaigner for tax cuts, the party has, under its new leader Fredrik Reinfeldt, moved more towards the middle. Together with the Liberal Party, the Centre Party and the Christian Democrats it formed an Alliance that won the election on 17 September 2006.

Since 1974 Sweden has had a one chamber Parliament or Riksdag of 349 seats. Members are elected to serve four-year terms by popular vote on a proportional representation basis. Voting takes place mainly on a party list basis but since September 1998, Swedes have had the possibility of voting for a named, individual candidate.

The Cabinet holds executive power but is responsible to the Riksdag.

Subdivisions: 21 county councils, 290 municipalities (townships). The municipalities enjoy a high degree of self-determination and set their own taxes.

Suffrage: Universal over 18. Citizens of EU member states, Norway and Iceland are allowed to vote in local elections. After 3 years of legal residence immigrants from other countries may also vote in local elections (but not in national elections).

Elections

The breakdown of the 2006 election result was as follows (2002 results):

Alliance

Moderates - 26.1% (15.2) – 97 seats (55)
Centre Party – 7.9% (6.2) – 29 seats (22)
Liberal Party – 7.5% (13.4) – 28 seats (48)
Christian Democrats – 6.6% (9.2) – 24 seats (33)
Total: 48.1% - 178 seats (158)

Former Government

Social Democrats – 35.2% (40.0) – 130 seats (144)
Left Party – 5.8% (8.4) – 22 seats (30)
Greens – 5.2% (4.6) – 19 seats (17)
Total: 46.2% - 171 seats (191)

The next Parliamentary Elections take place in 2010.

The Swedish Government:

Prime Minister: Fredrik Reinfeldt
Foreign Affairs: Carl Bildt (Moderate)
Finance: Anders Borg (Moderate)
Enterprise and Energy: Maud Olofsson (Centre Party leader)
Health and Social Affairs: Göran Hägglund (Christian Democrat leader)
Education and Schools: Jan Björklund (Liberal party leader
Higher Education and Research: Lars Leijonborg (Liberal)
Schools: Jan Björklund (Liberal Party Leader)
Agriculture, Food and Fisheries: Eskil Erlandsson (Centre)
Culture: Lena Adelsohn Liljeroth (Centre)
Local Government and Financial Markets: Mats Odell (Christian Democrat)
EU Issues: Cecilia Malmström (Liberal)
Foreign Trade: Eva Björling (Moderate)
International Development Cooperation: Gunilla Carlssson (Moderate)
Public Health and Elderly Care: Maria Larsson (Christian Democrat)
Social Security: Cristina Husmark Pehrsson (Moderate)
Environment: Andreas Carlgren (Centre)
Defence: Sten Tolgfors (Moderate)
Justice: Beatrice Ask (Moderate)
Migration and Asylum Policy: Tobias Billström (Moderate)
Integration and Gender Equality: Nyamko Sabuni (Liberal)
Employment: Sven Otto Littorin (Moderate)
Communications: Åsa Torstensson (Centre)

Sweden and the EU

Despite broad parliamentary support for the EU, public support in Sweden is below the EU average. In a national referendum in 2003, Sweden rejected joining the Euro (No 56% Yes 42%). Sweden held the EU presidency from the first half of 2001 and highlighted the issues of Employment (economic reform), Environment and EU Enlargement. Sweden will hold the Presidency again in the second half of 2009. Sweden’s Commissioner to the EU is Social Democrat Margot Wallström, Vice President and Commissioner for Institutional and Community Strategy.

The Royal Family

The Royal family holds a ceremonial role and is popular with the public. Republican groups occasionally try to create a debate on the future of the monarchy but there is little public support for its abolition. In 1976 King Carl XVI Gustaf married German-Brazilian Silvia Sommerlath and the couple has three unmarried children: Crown Princess Victoria (b.1977), Prince Carl-Philip (b.1979) and Princess Madeleine (b.1982). Also member of the Royal family is Princess Lilian – born Lilian Davies in Swansea, Wales in 1915. She was married to King Carl XVI Gustav’s uncle Prince Bertil, who died in 1997.