Why did Sweden refuse to abandon the national currency for the €uro?

1. Why did Sweden refuse to abandon the national currency for the €uro?

2. Summary • €uro zone in the world … • …Some things to keep in mind • Argument for joining the €uro zone • Sweden’s place in Europe … • …The swedish No to the €uro • Conclusion

3. Which countries are part of European Union ? Do all the members of EU belong to the European Monetary Union ?

4. €uro Zone in the whole wide world 6% of the population 20% of the GDP 21% of transactions in stock markets 30% of exportations

5. Arguments for Joining • No transaction costs • No exchange rate uncertainty • No competitive devaluations • Transparency & Competition • Stability & Strength

6. Sweden • Capital : Stockholm • King : Carl XVI Gustaf • Prime minister : GörånPersson • Population : 9 millions (15 % immigrants) • Unemployment : 6% • Growth : 2,8% in 2005 forecast : 3,5% in 2006 • Principal trade partners : Scandinavian and Baltic countries

7. Referendum : September 14th 2003 Who voted NO ? Who voted YES ?

9. Why No ? Common reasons among UK, Denmark and Sweden • Not enough confident in : - European Union - European Central Bank - €uro • Lost of the independence of their Monetary Policy (national symbol) • It’s not in their own interests to join the €uro

10. Why No ? National reason for Sweden • Worry about loosing : - national sovereignty - democratic control - social-security system • Sweden or the fear of a “small country” • Sweden has a much better economy than a lot of the €uro Zone countries

11. Conclusion : any regrets ? Sweden : the ideal euro candidate “NO” is not for ever A major argument in the “no” campaign “wait and see” Most of business leaders wanted and still claim for the € Sweden will assume the Presidency of the EU in 2009 80% of the swedes believe that Sweden will have the €uro in the next 10 years …