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Sweden

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Konungariket Sverige
Flag of Sweden Coat of Arms of Sweden
(Flag) (Coat of Arms)
Motto: (Royal)Image:Wp_globe_tiny.gif "För Sverige - I tiden" 1
"For Sweden – With the Times" ²
Anthem: Du gamla, Du friaImage:Wp_globe_tiny.gif
Thou ancient, Thou free
Location of Sweden
Capital StockholmImage:Wp_globe_tiny.gif
59°21′ N 18°4′ E
Largest city capital
Official languages SwedishImage:Wp_globe_tiny.gif ³ (de facto)
Government
{{{leader_titles}}}
Parliamentary democracyImage:Wp_globe_tiny.gif and Constitutional monarchyImage:Wp_globe_tiny.gif
{{{leader_names}}}
ConsolidationImage:Wp_globe_tiny.gif
{{{established_events}}}
{{{established_dates}}}
Area
 • Total
 • Water (%)
 
{{{area}}} km² (55th)
8.7
Population
 • 2007 est.
 • 1990 census
 • Density
 
9,142,8174 (88th)
8,587,353
{{{population_density}}}/km² (158th)
GDP (PPP)
 • Total
 • Per capita
2006 estimate
$291 billion (34th)
$32,200 (18th)
Currency Swedish kronaImage:Wp_globe_tiny.gif (SEK)
Time zone
 • Summer (DST)
CETImage:Wp_globe_tiny.gif (UTC+1)
CESTImage:Wp_globe_tiny.gif (UTC+2)
Internet TLD .seImage:Wp_globe_tiny.gif5
Calling code +46
{{{footnotes}}}

Sweden, officially the Kingdom of Sweden (SwedishImage:Wp_globe_tiny.gif: Konungariket Sverige fileplay in browser), is a Nordic countryImage:Wp_globe_tiny.gif on the Scandinavian PeninsulaImage:Wp_globe_tiny.gif in Northern EuropeImage:Wp_globe_tiny.gif. It has been a member of the European UnionImage:Wp_globe_tiny.gif since 1995. Its capitalImage:Wp_globe_tiny.gif city is StockholmImage:Wp_globe_tiny.gif.

At 449,964 km² (173,720 square miles), Sweden is the third largest country in Western EuropeImage:Wp_globe_tiny.gif and fifth in all of Europe. Sweden has a low population densityImage:Wp_globe_tiny.gif except in its metropolitan areas; 84% of the population lives in urban areas, which take up only 1.3% of the total land area.[1] The citizens enjoy a high standard of living and the country is generally perceived as modern and liberalImage:Wp_globe_tiny.gif,[2] with an organizational and corporate culture that is non-hierarchical and collectivist compared to its Anglo-Saxon counterparts.[3] Nature conservationImage:Wp_globe_tiny.gif, environmental protectionImage:Wp_globe_tiny.gif and energy efficiencyImage:Wp_globe_tiny.gif are generally prioritized in policy making and embraced by the general public in Sweden.[4][5]

Sweden has a long tradition as a major exporter of ironImage:Wp_globe_tiny.gif, copperImage:Wp_globe_tiny.gif and timberImage:Wp_globe_tiny.gif. Improved transportationImage:Wp_globe_tiny.gif and communicationImage:Wp_globe_tiny.gif allowed more remote natural assets to be utilized on a larger scale, most notably timberImage:Wp_globe_tiny.gif and iron oreImage:Wp_globe_tiny.gif. In the 1890s, universal schooling and industrializationImage:Wp_globe_tiny.gif enabled the country to develop a successful manufacturing industry and by the twentieth century, Sweden emerged as a welfare stateImage:Wp_globe_tiny.gif, consistently achieving a high position among the top-ranking countries in the UN Human Development IndexImage:Wp_globe_tiny.gif (HDI). Sweden has a rich supply of water power, but lacks significant oil and coal deposits.

Modern Sweden emerged out of the Kalmar UnionImage:Wp_globe_tiny.gif formed in 1397 and by the unification of the country by King Gustav VasaImage:Wp_globe_tiny.gif in the 16th century. In the 17th century Sweden expanded its territories to form the Swedish empireImage:Wp_globe_tiny.gif. Most of these conquered territories had to be given up during the 18th century. In the early 19th century Finland and the remaining territories outside the Scandinavian Peninsula were lost. After its last war in 1814, Sweden entered into a personal unionImage:Wp_globe_tiny.gif with Norway which lasted until 1905. Since 1814, Sweden has been at peace, adopting a non-alignedImage:Wp_globe_tiny.gif foreign policy in peacetime and neutralityImage:Wp_globe_tiny.gif in wartime.[6]

Contents

[edit] History

Main article: History of Sweden

[edit] Prehistory

Main article: Prehistoric Sweden

The early record of human activity in Scandinavia is sparse and the interpretations of the records from the Nordic Stone AgeImage:Wp_globe_tiny.gif (10,000 BC – 1700 BC) are often conflicting.[7] The oldest archaeological evidence of human habitation in Scandinavia has been found in what is now Denmark and consists of flint tools from 9,500 to 9,000 BC. Some scholars argue that the population slowly spread into what is present-day Sweden during the ensuing millennia.[8]

In 4200 BC, fired pottery, systematic farming and permanent settlements developed in southern Scandinavia and spread northward. Hundreds of Mediterranean-style megalithic graves dated 3300–2000 BC have been found in Denmark and southern Sweden. The early hunter-gatherers and farmers were followed between 2500 and 2000 BC by a new ethnolinguistic group, the so-called boat axe, battle axe, or single-grave peopleImage:Wp_globe_tiny.gif, named for their stone weapons and graves. They may have been Indo-EuropeanImage:Wp_globe_tiny.gif-speaking nomads who spread across much of northern Europe and may have also established cultural dominance over the earlier peoples of southern and central Scandinavia.[8] This period was followed by the Nordic Bronze AgeImage:Wp_globe_tiny.gif (1700–500 BC), one of the richest periods in the Nordic region, especially in southern Scandinavia. The conditions were geologically and topographically very similar to those in the modern-day Scandinavian landscape, but the climate was milder. An elite is believed to have emerged during this period, a chieftain-trader class with possible roots in the social structure of the battle ax people.[8] Archaeological finds of this era are the petroglyphs of southern Sweden and Norway, grave goods from several large burial mounds, and offering finds from what is believed to have been sacrificial sites.[8] Because of the wide access to water, Sweden's early inhabitants came in waves from many surrounding areas, with no recognized borders yet existing in Scandinavia. Societies in Sweden remained on the preliterate tribal and chiefdomImage:Wp_globe_tiny.gif levels until the emergence of writing on rune stonesImage:Wp_globe_tiny.gif in the Viking AgeImage:Wp_globe_tiny.gif. It is not known when and how the kingdom of Sweden was born, but the list of Swedish monarchsImage:Wp_globe_tiny.gif is drawn from when the first kings who ruled SvealandImage:Wp_globe_tiny.gif (Sweden) and GötalandImage:Wp_globe_tiny.gif (Gothia) as one. Sweden and Gothia were two separate nations long before that. It is unknown how long they have existed.

Panoramic view of Ale's Stones in Scania, southern Sweden.
Panoramic view of Ale's StonesImage:Wp_globe_tiny.gif in ScaniaImage:Wp_globe_tiny.gif, southern Sweden.

A tribe populating a region of what is today Sweden was first mentioned in 98 AD by the Roman historian TacitusImage:Wp_globe_tiny.gif, who wrote about the SuionesImage:Wp_globe_tiny.gif who lived out in the sea and were powerful in both arms and ships. According to Tacitus, they venerated wealth and therefore had a single ruler who exacted unlimited obedience from them and governed without restriction in power. Tacitus expressed concern that these Suiones might ally with neighboring tribes and cause trouble for the Roman Empire. Some scholars believe that Tacitus referred to the inhabitants of present-day eastern Sweden: SvealandImage:Wp_globe_tiny.gif, primarily the region around lake MälarenImage:Wp_globe_tiny.gif. The modern name Sweden is derived through "back-formation" from Old English Sweoðeod, which meant "people of the Swedes" (Old Norse Svíþjóð, Latin Suetidi). This word is derived from Sweon/Sweonas (Old Norse Sviar, Latin Suiones) (see Etymology of SwedenImage:Wp_globe_tiny.gif). The southern parts, on the other hand, were inhabited by the GeatImage:Wp_globe_tiny.gifs in the GötalandImage:Wp_globe_tiny.gif territory, and BeowulfImage:Wp_globe_tiny.gif described semi-legendary Swedish-Geatish warsImage:Wp_globe_tiny.gif in the sixth century AD. The northern part, NorrlandImage:Wp_globe_tiny.gif, was probably mostly populated by SamiImage:Wp_globe_tiny.gif.

The Swedish Viking AgeImage:Wp_globe_tiny.gif lasted roughly between the eighth and eleventh centuries AD. During this period, it is believed that the SwedesImage:Wp_globe_tiny.gif expanded from eastern Sweden and incorporated the GeatsImage:Wp_globe_tiny.gif to the south.[9] While Vikings from what is today Norway, Denmark and the west coast and south of Sweden travelled south and west, Swedish vikingsImage:Wp_globe_tiny.gif travelled east and south, going to Finland, the Baltic countries, Russia, the Mediterranean and further as far as BaghdadImage:Wp_globe_tiny.gif. Their routes passed the rivers of RussiaImage:Wp_globe_tiny.gif down south to Constantinople (Byzantine Empire) (present-day IstanbulImage:Wp_globe_tiny.gif, Turkey) on which they did numerous raids. The Byzantine Emperor TheophilosImage:Wp_globe_tiny.gif noticed their great skills in war, and invited them to serve as his personal bodyguard, these were called the varangian guardImage:Wp_globe_tiny.gif.

[edit] Middle Ages

Visby, a medieval city on Gotland.
VisbyImage:Wp_globe_tiny.gif, a medieval city on GotlandImage:Wp_globe_tiny.gif.
See also: Early Swedish history and Foundation of Modern Sweden

During the early stages of the Scandinavian Viking AgeImage:Wp_globe_tiny.gif, YstadImage:Wp_globe_tiny.gif in ScaniaImage:Wp_globe_tiny.gif and PavikenImage:Wp_globe_tiny.gif on GotlandImage:Wp_globe_tiny.gif, in present-day Sweden, were flourishing trade centers. Remains of what is believed to have been a large market have been found in Ystad dating from 600–700 AD .[10] In Paviken, an important center of trade in the Baltic region during the ninth and tenth century, remains have been found of a large Viking Age harbour with shipbuilding yards and handicraft industries. Between 800 and 1000, trade brought an abundance of silver to Gotland and according to some scholars, the Gotlanders of this era hoarded more silver than the rest of the population of Scandinavia combined.[10]

St. AnsgarImage:Wp_globe_tiny.gif introduced Christianity around 829, but the new religion did not begin to fully replace paganismImage:Wp_globe_tiny.gif until the twelfth century and onward. During the eleventh century Christianity took place as the most common religion, and from year 1050 Sweden is counted as a Christian nation. The period between 1100 and 1400 was characterized by internal power struggles and competition among the Nordic kingdoms, including struggles for territory and comparative power.[8] Swedish kings also began to expand the Swedish-controlled territory in Finland, creating conflicts with the RusImage:Wp_globe_tiny.gif.[11]

In the fourteenth century, Sweden was struck by the Black DeathImage:Wp_globe_tiny.gif (the Plague). During this period the Swedish cities also began to acquire greater rights and were strongly influenced by German merchants of the Hanseatic LeagueImage:Wp_globe_tiny.gif, active especially at VisbyImage:Wp_globe_tiny.gif. In 1319, Sweden and Norway were united under king Magnus ErikssonImage:Wp_globe_tiny.gif, and in 1397 Queen Margaret I of DenmarkImage:Wp_globe_tiny.gif effected the personal union of Sweden, Norway, and Denmark through the Kalmar UnionImage:Wp_globe_tiny.gif. However, Margaret’s successors, whose rule was also centred in Denmark, were unable to control the Swedish nobility. Real power was held for long periods by regents (notably those of the StureImage:Wp_globe_tiny.gif family) chosen by the Swedish parliament. King Christian II of DenmarkImage:Wp_globe_tiny.gif, who asserted his claim to Sweden by force of arms, ordered a massacre in 1520 of Swedish nobles at Stockholm. This came to be known as the “Stockholm blood bathImage:Wp_globe_tiny.gif” and stirred the Swedish nobility to new resistance and, on the 6th of June (Sweden's national holiday) in 1523, they made Gustav VasaImage:Wp_globe_tiny.gif their king. This is sometimes considered as the foundation of modern SwedenImage:Wp_globe_tiny.gif. Shortly afterwards he rejected CatholicismImage:Wp_globe_tiny.gif and led Sweden to the Protestant ReformationImage:Wp_globe_tiny.gif. Gustav Vasa is by some considered to be Sweden's "Father of the NationImage:Wp_globe_tiny.gif".

[edit] Swedish Empire

The Swedish Empire following the Treaty of Roskilde of 1658. Dominions in Prussia, held from 1629 to 1635, do not appear on this map.  ██ Sweden proper  ██ Kexholm County  ██ Swedish Ingria  ██ Swedish Estonia  ██ Livonia  ██ Swedish Pomerania, Abp Bremen and Bp Verden  ██ Scania, Gotland and Bohuslän  ██ Trøndelag and Møre og Romsdal  ██ Härjedalen
The Swedish EmpireImage:Wp_globe_tiny.gif following the Treaty of RoskildeImage:Wp_globe_tiny.gif of 1658. Dominions in PrussiaImage:Wp_globe_tiny.gif, held from 1629 to 1635, do not appear on this map.

██ Sweden properImage:Wp_globe_tiny.gif

██ Kexholm CountyImage:Wp_globe_tiny.gif

██ Swedish IngriaImage:Wp_globe_tiny.gif

██ Swedish EstoniaImage:Wp_globe_tiny.gif

██ LivoniaImage:Wp_globe_tiny.gif

██ Swedish PomeraniaImage:Wp_globe_tiny.gif, Abp BremenImage:Wp_globe_tiny.gif and Bp VerdenImage:Wp_globe_tiny.gif

██ ScaniaImage:Wp_globe_tiny.gif, GotlandImage:Wp_globe_tiny.gif and BohuslänImage:Wp_globe_tiny.gif

██ TrøndelagImage:Wp_globe_tiny.gif and Møre og Romsdal

██ HärjedalenImage:Wp_globe_tiny.gif

See also: Rise of Sweden as a Great Power, Swedish Empire, Swedish overseas colonies, Sweden and the Great Northern War, Absolute Monarchy in Sweden, Sweden-Finland, and Union between Sweden and Norway

The seventeenth century saw the rise of SwedenImage:Wp_globe_tiny.gif as one of the Great PowerImage:Wp_globe_tiny.gifs in Europe. Sweden also had colonial possessions as a minor colonial EmpireImage:Wp_globe_tiny.gif that existed from 1638-1663 and later 1785–1878.

Sweden was during Imperial times the most powerful country of northern Europe and the Baltic SeaImage:Wp_globe_tiny.gif. Sweden's Imperial status took its start with Gustav II AdolphImage:Wp_globe_tiny.gif as king, and his successful participation in the Thirty Years' War, which made Sweden the recognized leader of continental Protestantism in Europe until 1721, when the Empire collapsed.[12] Sweden's Imperial status during this period is largely credited to Gustav IImage:Wp_globe_tiny.gif's major changes on the Swedish economy in the mid-1500s, and his introduction of ProtestantismImage:Wp_globe_tiny.gif (Lutheran).[13]

The mid 1600s and the early 1700s were Sweden's most successful years as a great power. Sweden reached its largest territorial extent during the rule of Charles XImage:Wp_globe_tiny.gif (1622–1660) after the treaty of RoskildeImage:Wp_globe_tiny.gif in 1658. However, after more than a half century of almost constant warfare the Swedish economy had deteriorated. It would become the lifetime task of Charles' son, Charles XIImage:Wp_globe_tiny.gif (1655-1697), to rebuild the economy and refit the army. His legacy to his son, the coming ruler of Sweden Charles XIIImage:Wp_globe_tiny.gif, was one of the finest arsenals in the world, a large standing army and a great fleet. Sweden's largest threat at this time, Russia, had a larger army but was far behind in both equipment and training. The Swedish army crushed the Russians at the Battle of NarvaImage:Wp_globe_tiny.gif in 1700, one of the first battles of the Great Northern WarImage:Wp_globe_tiny.gif. This led to an overambitious campaign against RussiaImage:Wp_globe_tiny.gif in 1707, however, ending in a decisive Russian victory at the Battle of PoltavaImage:Wp_globe_tiny.gif in 1709. The campaign had a successful opening for Sweden, which came to occupy half of Poland and making Charles able to claim the Polish throne. But after a long march exposed by cossackImage:Wp_globe_tiny.gif raids, the Russian Tsar Peter the GreatImage:Wp_globe_tiny.gif's scorched-earth techniques and the cold Russian climateImage:Wp_globe_tiny.gif, the Swedes stood weakened with a shattered confidence, and enormously outnumbered against the Russian army at Poltava. The defeat meant the beginning of the end for Sweden as Empire.

Even though Sweden had lost almost half of its army during these times of intense war, Charles XII still attempted to invade Norway 1716. Soundly defeated in the war, the Swedish head of state signed the Treaty of NystadImage:Wp_globe_tiny.gif in 1721. Forced to cede large areas of land, Sweden also lost its place as an empire and as the dominant state on the Baltic Sea. With Sweden's lost influence, Russia began to emerge as an empireImage:Wp_globe_tiny.gif, and become one of Europe's dominant nations.

In the eighteenth century, Sweden did not have enough resources to maintain its territories outside Scandinavia and most of them were lost, culminating with the 1809 loss of the territory once named ÖsterlandImage:Wp_globe_tiny.gif (Eastern district) and the eastern part of NorrlandImage:Wp_globe_tiny.gif to Russia: these parts became the semi-autonomous (DuchyImage:Wp_globe_tiny.gif) of Finland of Imperial RussiaImage:Wp_globe_tiny.gif.

After Denmark-Norway was defeated in the Napoleonic warsImage:Wp_globe_tiny.gif, Norway was ceded to the king of Sweden on January 14, 1814, at the Treaty of KielImage:Wp_globe_tiny.gif. The Norwegian attempts to keep their status as a sovereign state were rejected by the Swedish king, Charles XIIIImage:Wp_globe_tiny.gif. He launched a military campaign against Norway on July 27, 1814, ending in the Convention of MossImage:Wp_globe_tiny.gif, which forced Norway into a personal unionImage:Wp_globe_tiny.gif with Sweden, which was not dissolved until 1905. The 1814 campaign was also the last war in which Sweden participated as a combatant.

[edit] Modern history

Further information: Modernization of SwedenImage:Wp_globe_tiny.gif and Swedish emigration to North AmericaImage:Wp_globe_tiny.gif

The eighteenth and nineteenth centuries saw a significant population increase, which the writer Esaias TegnérImage:Wp_globe_tiny.gif in 1833 famously attributed to "the peace, the (smallpoxImage:Wp_globe_tiny.gif) vaccineImage:Wp_globe_tiny.gif, and the potatoesImage:Wp_globe_tiny.gif".[14] Between 1750 and 1850, the population in Sweden doubled. According to some scholars, mass emigration to America became the only way to prevent famine and rebellion; over 1% of the population emigrated annually during the 1880s.[15] Nevertheless, Sweden remained poor, retaining a nearly entirely agricultural economy even as Denmark and Western European countries began to industrialize.[16][15] Many looked towards America for a better life during this time. It is believed that between 1850 and 1910 more than one million Swedes moved to the United States.[17] In the early 20th century, more Swedes lived in Chicago than in GothenburgImage:Wp_globe_tiny.gif (Sweden's second largest city). Most Swedish immigrants moved to the Midwestern United StatesImage:Wp_globe_tiny.gif, with a large population in Minnesota. Some Swedes moved to Delaware. Some also moved to Canada and others in smaller numbers to ArgentinaImage:Wp_globe_tiny.gif.

A map of Sweden with largest cities and lakes and most important roads and railroads, from a printed CIA World Factbook. (See also: Atlas of Sweden)
A map of Sweden with largest cities and lakes and most important roads and railroads, from a printed CIA World FactbookImage:Wp_globe_tiny.gif. (See also: Atlas of Sweden)

Despite the slow rate of industrialization into the 19th century, many important changes were taking place in the agrarian economy due to innovations and the large population growth.[18] These innovations included government-sponsored programs of enclosureImage:Wp_globe_tiny.gif, aggressive exploitation of agricultural lands, and the introduction of new crops such as the potato.[18] Due also to the fact that the Swedish peasantry had never been enserfed as elsewhere in Europe,[19] the Swedish farming culture began to take on a critical role in the Swedish political process, which has continued through modern times with modern Agrarian party (now called the Centre Party).[20] Between 1870 and 1914, Sweden began developing the industrialized economy that exists today.[21]

During the late nineteenth century, Sweden was influenced by Protestant temperance movementImage:Wp_globe_tiny.gifs, mainly of American origin. As a result of their intense propaganda, it is often claimed that alcohol consumption was unusually high in Sweden at this time.[22] However, there is no factual ground for believing that alcohol consumption was higher than in other comparable countries.

Strong grassroots movements sprung up in Sweden during the latter half of the nineteenth century (unions, temperance groups, and independent religious groups), creating a strong foundation of democratic principles. These movements precipitated Sweden's migration into a modern parliamentary democracy, achieved by the time of World War IImage:Wp_globe_tiny.gif. As the Industrial RevolutionImage:Wp_globe_tiny.gif progressed during the twentieth century, people gradually began moving into citiesImage:Wp_globe_tiny.gif to work in factoriesImage:Wp_globe_tiny.gif, and became involved in SocialistImage:Wp_globe_tiny.gif unionsImage:Wp_globe_tiny.gif. A SocialistImage:Wp_globe_tiny.gif revolutionImage:Wp_globe_tiny.gif was avoided in 1917, following the re-introduction of ParliamentarismImage:Wp_globe_tiny.gif, and the country was democratizedImage:Wp_globe_tiny.gif.

[edit] Recent history

See also: Sweden during World War II, Cold war Sweden, and Sweden after the Cold War

Sweden remained officially neutralImage:Wp_globe_tiny.gif during World War IImage:Wp_globe_tiny.gif and World War II, although its neutrality during World War II has been vigorously debated.[23][24] Sweden was under German influence for most of the war, as ties to the rest of the world were cut off through blockades.[23] The Swedish government felt that it was in no position to openly contest Germany,[25] and collaborated with the Germans.[26] Swedish volunteers to German SS units were among the first to invade the Soviet Union in Operation BarbarossaImage:Wp_globe_tiny.gif. Sweden also supplied steel and machined parts to the Germans throughout the war. Towards the end of the war however, when the defeat of the Germans seemed imminent, Sweden began to play a role in humanitarian efforts and many refugees, among them many Jews from Nazi-occupied Europe, were saved partly because of the Swedish involvement in rescue missions at the internment camps and partly because Sweden served as a haven for refugees, primarily from NordenImage:Wp_globe_tiny.gif and the Baltic statesImage:Wp_globe_tiny.gif.[25]. Nevertheless, internal and external critics have argued that Sweden could have done more to resist the Nazi war effort, even if risking occupation.[25]

Following the war, Sweden took advantage of an intact industrial base, social stability and its natural resources to expand its industry to supply the rebuilding of Europe.[27] By the 1960s, Sweden, like the other Nordic countries, had become an affluent consumer society and welfare state.[27] Sweden was part of the Marshall PlanImage:Wp_globe_tiny.gif and participated in the Organization of Economic Cooperation and Development (OECDImage:Wp_globe_tiny.gif),[27] many of the policies aiming to improve the quality of life for the general population, in particular Sweden's working class, were successfully implemented.

Sweden joined the European UnionImage:Wp_globe_tiny.gif in 1995, after the collapse of the Soviet Union. During the Cold WarImage:Wp_globe_tiny.gif, Europe's non-aligned Western countries, except Ireland, had considered membership unwise, as the EU predecessor, the European CommunityImage:Wp_globe_tiny.gif, had been strongly associated with NATO countries. Following the end of the Cold War, however, Sweden, Austria and Finland joined, though in Sweden's case without adopting the EuroImage:Wp_globe_tiny.gif. Sweden remains non-aligned militarily, although it participates in some joint military exercises with NATOImage:Wp_globe_tiny.gif and some other countries, in addition to extensive cooperation with other European countries in the area of defence technology and defence industry. Among others, Swedish companies export weapons that are used by the American army in Iraq.[28] Sweden also has a long history of participating in international military operations, including most recently, AfghanistanImage:Wp_globe_tiny.gif, where Swedish troops are under NATO command, and in EU sponsored peace keeping operations in KosovoImage:Wp_globe_tiny.gif, Bosnia and HerzegovinaImage:Wp_globe_tiny.gif, and CyprusImage:Wp_globe_tiny.gif.

Sweden, like countries around the globe, entered a period of economic decline and upheaval, following the oil embargoes of 1973-74 and 1978-79.[29] In the 1980s pillars of Swedish industry were massively restructured. Shipbuilding was discontinued, wood pulp was integrated into modernized paper production, the steel industry was concentrated and specialized, and mechanical engineering was digitalized.[30]

A bursting real estateImage:Wp_globe_tiny.gif bubble caused by inadequate controls on lending combined with an internationalImage:Wp_globe_tiny.gif recession and a policy switch from anti-unemployment policies to anti-inflationary policies resulted in a fiscal crisis in the early 1990s.[31] The response of the government was to cut spending and institute a multitude of reforms to improve Sweden's competitiveness, among them reducing the welfare stateImage:Wp_globe_tiny.gif and privatizingImage:Wp_globe_tiny.gif public services and goods. Much of the political establishment promoted European Union (E.U.) membership, and the Swedish referendum passed by 52-48% in favour of joining the E.U. on August 14, 1994. Sweden joined the European UnionImage:Wp_globe_tiny.gif on 1 January 1995.

The long term effects of these changes was to greatly improve the outlook of the Swedish economy. The Social democrats increased spending on child support and continued to pay down the public debt.[32] By 1998 the Swedish macro-economy recovered from the 1980s industrial restructuring and the monetarist excesses, and the country has since performed very well macro-economically.[33]At the turn of the twenty-first century, Sweden has a well-regarded, generally robust economy, and the average quality of life, after government transfers, is very high, inequalityImage:Wp_globe_tiny.gif is low (the