Swedish Euro Opposition Strengthens

The Euro opposition has increased. Now, one year after the Swedish Euro-referendum, when membership in the European currency union were turned down, the opposition to the Euro has stiffened further. According to Sweden's leading tabloid, Social-DemocraticAftonbladet, six out of ten Swedes are opposed to the Euro. Partly to blame, perhaps, is that all the doom and gloom that the proponents threatened us with, were we to keep the Swedish Krona, plainly didn't happen. Personally, I still think its very much a pro-market thing for an advanced country with an open economy to keep its currency floating. Frictions in the labor market might thus to some extent be counterbalanced by currency liquidity. If the collective wage negotiating process leads to excessive increases, the currency market might simply devalue these (in USD term) by selling off the Krona. The EMU-opponents campaign has been kind enough to save and post an article I wrote ahead of the referendum to the Swedish daily business paper, Dagens Industri. With knowledge of the language of the heroes and honor, you can read it here. Our Prime Minister, Goran Persson, leader of the Swedish Social-Democrats, who was the main force in favor of a Swedish EMU-entrance, have declared that another referendum will probably have to wait until after 2010.

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