Monday, April 20, 2009

Sweden's better off outside the Eurozone

An opinion poll today shows that for the first time there are more Swedes in favour of joining the euro than against: 47% in favour, 45% against and 9% undecided. The dropping value of the krona against the euro is said to be the reason.

No need to draw foregone conclusions though. A re-run referendum won't happen anytime soon - Sweden held a referendum as recently 2003, in which 56% of the electorate voted No to joining the euro (42% voted Yes). There's little political appetite for repeating a popular vote that risks splitting parties (as it did last time around) or worse, coalition governments.

In addition, we recieved a reminder today of the benefits for an export-driven economy - such as Sweden's - of remaining outside the eurozone.

The Chief Economist at the Swedish Trade Council, Mauro Gozzo, told Swedish Television that for Sweden:
"It's a net gain of 30 billion kronor [£2.4 billion] in exports each year from
remaining outside. If the krona had been significantly stronger, then the economic downturn would have been greater and employment levels would have dropped faster."

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