Sweden in 2004

            
 
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Case Details:

Case Code : ECOA120
Case Length : 15 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note :Not Available
Countries : Sweden
Industry : -

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Introduction

Sweden, one of Europe's most important nations had established a solid reputation as a welfare state. A member of the European Union (EU) since 1995, Sweden had not shown much interest in joining Europe's single currency zone. The rejection of Euro membership in a referendum in September 2003 represented a snub for the Prime Minister, Goran Persson, who had strongly campaigned for a “Yes” vote.

Relations between Persson's ruling Social Democratic Party and the supporting Left and Green parties remained strained.

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Although agreement had been reached on the draft-2004 budget, it seemed far from certain that the co-operation pact between the parties would survive the four-year legislative term.

Sweden's budget surplus was expected to widen in the next few years. Although conditions in the labor market had deteriorated, the economy's outlook remained bright, with the external account showing a surplus. GDP growth, which was subdued in 2003 at an estimated 1.5%, was expected to accelerate to 2.3% in 2004 and 2.5% in 2005...

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