The current financial crisis has made the voices for adopting the Euro stronger.
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Sweden should have gained on adopting
the Euro, according to a recent report.
Photo: sxc.hu
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A follow-up report on Sweden’s decision to stand outside the EMU ten years ago says that there are no longer any good arguments for not to participate in the monetary union.
The conditions for a Euro currency in Sweden have changed. The report by the former Government in the 1990s concluded that economical arguments spoke against Sweden to join the EMU.
According to the report presented today by the Swedish Centre for Business and Policy Studies those arguments do not any longer hold and Sweden should on the other way around probably gain on adopting the Euro.
“The report estimates that Sweden mainly would have had the same development of employment and inflation if the country had joined the EMU then, but also would have made national economic gains in efficiency by more stabile price levels and increased trading”, writes Professor Harry Flam in an op-ed in newspaper Dagens Nyheter.
Most of all should a stable exchange rate be positive for Sweden, companies would then escape volatility in their ability to compete because of changed exchange rates.
More and more small and middle sized companies are positive to adopt the Euro as currency. According to a recent survey from the bank SEB are 67 per cent pro while 21 per cent are against it. 12 per cent answer that they don’t know.
“Small and middle sized companies are severally more positive to adopt the Euro than people in general are. During the end of 2008 can we see an increase of this compared to earlier studies, which may be due to a weaker Swedish Krona in relation to the financial crisis”, says Ingela Hemming, economist at SEB bank, to newspaper Svenska Dagbladet,
David Jonasson
david.jonasson@stockholmnews.com