Bloomberg: Sweden considers adopting the euro after joining NATO

According to Bloomberg, following Russia's invasion of Ukraine, Sweden has reopened the debate on adopting the euro. The country, which recently became a member of NATO, is beginning to consider another major step towards integration with the European Union.

In 2003, Swedes rejected the single currency in a referendum, arguing that the krona could act as an economic buffer. Today, however, geopolitical factors are entering the equation. In addition to threats from Russia and China, they also mention Donald Trump's foreign policy, including his statements on Greenland.

According to Liberal Party MP Cecilia Rönn, Sweden is strengthening its defense as a member of NATO, but "still has one foot out the door" because it is not part of monetary cooperation. According to proponents, the common currency would strengthen political ties and give the country greater influence in negotiations on European monetary policy.

Finance Minister Elisabeth Svantesson has supported the preparation of an analysis of the advantages and disadvantages of adopting the euro, with the assessment to begin after the September elections.

Economist Lars Calmfors, who recommended postponement before the referendum, now points to changed geopolitical conditions and argues that membership in the "core" of the Union is more important than in the past.

(max)