New Report Says Sweden Would Gain More Than It Loses by Joining the Euro Zone

Post by : Saif Nasser

A new independent report from the Swedish Free Enterprise Foundation has reopened a long-running debate in Sweden: should the country join the euro zone? According to the authors, the answer today is “yes.” They argue that the benefits of adopting the euro are now larger than the possible downsides, especially at a time when global tensions and uncertainty are rising.

Sweden has been a member of the European Union since 1995. However, in a national referendum in 2003, most voters rejected the idea of replacing the Swedish krona with the euro. At that time, 56% were against and only 42% supported the change. Even now, public opinion remains mostly negative, with a May survey showing that nearly half of Swedes oppose joining the euro.

Still, the new report says circumstances have changed. Lars Calmfors, a respected professor of international economics and one of the report’s authors, believes Sweden stands to gain more influence and stability by adopting the common European currency. He says joining the euro would make cross-border trade easier and attract more foreign investments. It would also give Sweden a stronger voice in shaping Europe’s financial future.

Another reason for reconsidering is the global security situation. Russia’s invasion of Ukraine pushed Sweden to seek NATO membership, and many experts say deeper cooperation across Europe is becoming more important. Joining the euro, they argue, could be a natural next step in strengthening Sweden’s ties with other EU countries.

There are also practical arguments. Bulgaria is preparing to join the euro in January, becoming the 21st country in the currency union. As more countries adopt the euro, Sweden’s influence within the EU’s financial system could shrink if it remains outside.

But joining the euro still comes with risks. One major concern is the high government debt levels in some euro zone countries. If those countries face financial trouble, Sweden might be required to contribute funds to help stabilise the region. Critics say this could strain Sweden’s own economy.

Political opinions in Sweden remain mixed. The Liberals are the only coalition party clearly in favour of adopting the euro. The Moderates want to study the issue more closely, but they do not expect membership anytime soon. The Christian Democrats have not taken a strong position.

On the other hand, the Sweden Democrats—the largest party on the right—strongly oppose joining the euro. They argue that Sweden must control its own monetary policy, meaning it should decide interest rates and currency policies independently, without being tied to the needs of the euro zone. The party previously even suggested leaving the EU entirely.

The opposition Social Democrats, who are currently the biggest party in Sweden, say the matter was already settled by the 2003 referendum. They feel there is no need to open the debate again unless public opinion changes.

With elections coming up in 2026, it is unlikely that euro adoption will become a major campaign issue. Most voters are focused on local economic challenges, and many remain unsure whether switching currencies would bring long-term benefits.

Even so, the new report is expected to restart conversations in political circles. As Europe continues to evolve, Sweden may one day be pushed to reconsider its position. For now, the country remains divided, with experts urging action while many citizens prefer to stay with the familiar Swedish krona.