Sweden’s joining the euro zone has become a subject of renewed debate. An independent report published by the Swedish Free Enterprise Foundation argues that in a period of increasing global uncertainty, economic gains outweigh potential risks and that the country should adopt the euro.
Sweden, which joined the EU in 1995, rejected the use of the euro in a referendum held in 2003 with 56% to 42%.
Professor Emeritus of International Economics at Stockholm University, Lars Calmfors, who contributed to the report, emphasized that conditions have changed today: “The justifications for adopting the euro have strengthened over time. Sweden should accept the euro.” The report notes that euro membership would increase cross-border trade and foreign investment, and would give Sweden a stronger say in shaping EU capital markets. With Bulgaria preparing to adopt the euro in January, the number of countries using the common currency will rise to 21. The report also warns that high public debt in the euro zone could pose a financial risk for Sweden. Following Russia’s invasion of Ukraine, Sweden’s entry into NATO and the increased emphasis on deeper integration within the EU are among the factors that have revived the euro debate. However, public opinion is still not convinced. According to a May poll by the statistics agency, only 32 percent of Swedes support the euro, while 49.5 percent oppose it. The picture is also mixed on the political front. While the Moderates, the largest party in the coalition, are open to a new review, they believe membership is not imminent. The Christian Democrats are undecided, and the only party in the three-party coalition that clearly supports the euro is the Liberals. The largest party in the right-wing bloc, the Sweden Democrats, opposed this, stating: “We must maintain control over our own monetary policy.” The main opposition Social Democrats also stated that the issue was already settled with the 2003 referendum, adding that they “see no reason to reconsider the decision.” The Euro debate is not a major issue in the general elections in September 2026, but the latest report has brought Sweden’s view on the common currency back to the table. The Euro debate is not a major issue in the general elections in September 2026, but the latest report has brought Sweden’s view on the common currency back to the table.
