Sweden in the European Union


Sweden in the European Union

On January 1, 1995 Sweden became a member of the European Union (EU). With Finland and Austria joining on the same date, the EU expanded from 12 to 15 member countries. Sweden fully supports plans for a further enlargement of the EU to include the countries of Eastern and Central Europe, among them the Baltic states.
EU membership has been the dominant political issue in Sweden so far during the 1990s. There are few historical precedents for the wide-ranging discussion of Europe conducted in Sweden. The advantages and disadvantages of the EU have been intensively debated, dividing the Swedish people into two separate camps. EU membership nevertheless won approval by a clear margin in the 1994 referendum. Voter turnout was 83 percent.
Since then, however, the Swedes have shown a certain weariness about European issues. When Sweden elected its members of the European Parliament in September 1995, only 41 percent of all eligible voters cast their ballots. Public opinion surveys point toward growing skepticism about the EU among the Swedish people. There are, nevertheless, two major European issues, the planned Economic and Monetary Union (EMU) and the 1996 Intergovernmental Conference (IGC) which are beginning to stand out in the Swedish political debate.

The road to membership

Swedish membership signifies the culmination of a long period of economic integration and cooperation with the EU. Sweden’s 1972 free trade agreement with the European Community (EC) and the 1992 European Economic Area (EEA) Treaty were among important milestones on the road to membership.

It did not take long for Sweden to become an EU member, once the application process had begun. After the fall of the Berlin Wall late in 1989, the issue of joining the EU (or the EC, as it was referred to before the 1992 Maastricht Treaty) attracted an increasingly lively domestic debate. Because of the superpower conflicts that divided Europe during the Cold War, Sweden had previously not viewed membership as reconcilable with its existing neutrality policy.

In October 1990 the Social Democratic government announced that in its opinion, Sweden should aim at EU membership. In July 1991, Prime Minister Ingvar Carlsson submitted Sweden's membership application, and in February 1993, actual negotiations began in Brussels. By then, the 1992 summit meetings of EU heads of state and government in Lisbon and Edinburgh had given the green light for enlargement of the European Union without major institutional reforms. Sweden would be welcome as one of the new members of the Union.

The negotiations took just over a year. On March 30, 1994, an agreement was reached between Sweden and the EU member states. The accession treaty was duly signed at the EU summit in Corfu, Greece, during the summer of 1994, where Sweden was represented by the then prime minister, Carl Bildt.

On November 13, 1994 the issue of Swedish EU membership was finally resolved by a nationwide referendum in which 52.3 percent of participants voted Yes, 46.8 voted No, and 0.9 percent submitted blank ballots. The turnout was high: 83.3 percent of eligible voters. The Swedish people had thus approved EU membership, and a formal decision was made by Parliament on December 15, 1994. Meanwhile Sweden had changed governments after the September elections, and Ingvar Carlsson was again prime minister.

One reason why the whole negotiating process went relatively smoothly was that much of the work had already been done when the EEA Treaty was signed in 1992. This treaty between the EU and members of the European Free Trade Association (EFTA) regulated most terms of Swedish participation in the EC single market. Important areas such as agriculture and regional development policy nevertheless fell outside the scope of the EEA Treaty and were resolved in the membership agreement.

The 1995 election to the European Parliament

In September 1995 the Swedes went to the polls once again to elect 22 members of the European Parliament in Strasbourg. The election outcome was something of a shock—not so much the distribution of votes among the political parties, but the fact that only 41.3 percent of eligible voters took part in the election. Swedish voter turnout is between 80 and 90 percent in elections to the Riksdag (Parliament). In the other EU countries, average voter turnout during the latest election to the European Parliament was 56.7 percent.

Sweden’s low voter turnout may indicate that the political parties have failed to persuade the Swedish people of the importance of EU cooperation. The election also led to major successes for parties and politicians critical of the EU. The Green Party and the Left Party, which are both against Swedish EU membership, received heavier support than in the 1994 election to the Swedish Parliament. The ruling Social Democratic Party, which includes both pro-EU and anti-EU officials, attracted a dramatically lower percentage of voters than in 1994. Of the 22 members of the European Parliament that the Swedes elected in 1995, 13 are men and 9 women. Half of them have declared that they oppose Swedish EU membership.

Several public opinion surveys have also confirmed the impression of widespread skepticism toward EU membership. One survey presented during November 1995 in Dagens Nyheter, Sweden’s largest morning newspaper, indicated that 62 percent of the Swedish people would vote No in a new membership referendum and only 26 percent Yes. Another study, reported by the same newspaper, indicated that 42 percent of the Swedish people would support their country’s withdrawal from the EU, while 35 percent want it to stay in the EU and the rest are uncertain.

Yes or No

In Sweden, EU cooperation is still being debated in terms of Yes or No, even though the membership issue was settled by the 1994 referendum. But the “anti-EU” parties—the Greens and the Left (formerly Communists)—have not relinquished the idea of possible Swedish withdrawal from the Union. The Yes or No debate has thus assumed a dominant role in opinion molding, overshadowing other key European issues such as enlarging the EU to include the countries of the former Eastern bloc. However, now that the bitter struggle between pro- and anti-EU groups in the referendum and the European Parliament election is over, the debate is shifting toward the shape of EU cooperation and what Sweden can contribute as a new member. Both the pro- and anti-EU groups have declared a desire to involve themselves actively in a thorough discussion of the EU’s future development.

The 1996 Intergovernmental Conference

One of the reasons why Sweden sought EU membership was so that it could participate fully in the Intergovernmental Conference (IGC 96), now scheduled to begin in March 1996. This gathering will initiate a review of the Maastricht Treaty, which will decide the path of the European Union into the 21st century. The Swedish government has declared that IGC 96 will be an important opportunity for Sweden to make its voice heard and to promote those goals it regards as most urgent in European cooperation. From Sweden’s standpoint, it is especially important that the review should also deal with the future enlargement of the EU to include the countries of Central and Eastern Europe.

Sweden’s preparations for the 1996 conference have focused on three goals:

Sweden has especially emphasized the importance of making the decision-making process more transparent to ordinary citizens, in order to generate stronger popular support for EU cooperation. The Swedish principle of publicity, which guarantees citizens access to information about the decision-making process, might be a good principle in the EU as well. Sweden is thus considering a proposal to the IGC that openness be guaranteed in EU law. The basic principle of EU organizations should be transparency and openness to the general public and the media, to the extent that exceptions are not made in special cases.

The Intergovernmental Conference must also lay the groundwork for enlarging the EU to encompass countries in Central and Eastern Europe (including the Baltics), as well as Cyprus and Malta. Negotiations with applicant countries can begin only after the completion of IGC 96. Enlargement toward the east is of great interest to Sweden. This may be an important step toward the general European peace and security system that Sweden desires. Properly implemented, enlargement of the EU may also have a strongly favorable impact on the overall economic growth of Europe. In Sweden’s view, negotiations with a large number of countries on the acceptance of new EU members should begin simultaneously. Accession, on the other hand, should be based on suitability, i.e. should occur when each respective country is ready and well- prepared for membership.

Combating today’s high jobless rates in Europe and promoting rapid growth and high employment are among Sweden’s top priorities for the work of the EU. The Swedish government is supporting efforts to add new provisions on employment and labor market policy to the Maastricht Treaty and would like to discuss the concept of an “employment Union.”

One important Swedish view in the run-up to the IGC is that continued EU integration and enlargement should, to the greatest possible extent, be based on a single institutional framework. Sweden does not advocate a “Europe à la carte,” which would undermine opportunities to implement the advantages of the single market.

Various models for future EU cooperation have triggered lively debate around Europe. Aside from the concept of a “Europe à la carte” with a looser form of cooperation, the idea of a “hard core” of model countries in the EU has also been launched. There have also been proposals to create “concentric circles” of countries with different levels of ambition. For its part, Sweden advocates a more pragmatic strategy of EU cooperation, focusing to a great extent on the everyday problems of citizens. The EU must be capable of helping to create a good, secure existence for people.

Sweden also realizes how important it is to have a broad-based debate on the EU’s future that engages the citizens of member countries, not just a political elite. A lot thus remains to be done at the national level, too. In Sweden a special committee, including representatives of all the major political parties, has begun the task of presenting IGC issues and encouraging a broad-based, intensive debate. So far, however, this debate has not penetrated very far outside the government and Parliament. The low turnout in the 1995 election to the European Parliament indicates that in Sweden, too, it is difficult to persuade ordinary citizens to take an interest in these issues.

EMU

With broad political support, the Swedish government presented a “convergence program,” which demonstrates that during the 1990s, Sweden has good potential to fulfill the criteria for full participation in the planned Economic and Monetary Union (EMU). These criteria are balanced public finances, low debt, stable prices, stable exchange rates and low interest rates. The Swedish convergence plan was also favorably received by EU finance ministers and heads of central banks. This document does not, however, adopt any position on EMU as such. Sweden has already accepted the rule system and is participating fully in the second stage of the EMU process, which has already begun.

During its 1993-94 membership negotiations, however, Sweden declared that its final decision on whether it would join the third stage of EMU, including a common currency and central bank, would be made by the Swedish Parliament “in light of continued developments and in compliance with the regulations in the Treaty.” This was noted in the official negotiation record.

In June 1995, when the convergence plan was unveiled, the government said that a strong Swedish economy is necessary, regardless of whether Sweden finally decides to participate in the third stage of EMU or not. The convergence program, which primarily details the steps being taken by government and Parliament to restore order to Swedish government finances, will thus remain in place under any circumstances. Meanwhile, during 1995 the Swedish economy improved faster than previously anticipated. Today both the government and the Riksbank (Sweden’s central bank) are even more optimistic about the country’s chances of qualifying for full participation in EMU.

The issue is politically controversial, however. To date, the advantages and disadvantages of EMU have mainly been discussed among economists, but during the election to the European Parliament, they were also raised in the general political debate. To gather documentation for the Swedish Parliament’s EMU decision, the government has appointed a special group of economists to analyze the consequences for Sweden of both full participation in the third stage of EMU and non-participation. Swedish opponents of EU membership have called for another referendum on participation in EMU.

Stronger regional cooperation around the Baltic Sea

Because Sweden and Finland have joined the European Union, the EU will play an important role in the Baltic Sea area. This is a region with 50 million inhabitants who have a long common history. Within the EU, Sweden intends to work toward expanded regional cooperation with the three Baltic states of Estonia, Latvia and Lithuania, northwestern Russia and the Baltic Sea region as a whole. Sweden is very interested in ensuring democracy and independence in the Baltic states, having supported these countries during their struggle for liberation from the then Soviet Union. Today it would also like to promote the wishes of the Baltic states to be included in EU cooperation, with an eye to future membership.

Sweden meanwhile intends to strengthen its cooperation with the other Nordic countries: Denmark, Finland, Iceland and Norway. Although Norway and Iceland are not EU members, the Nordic dimension will continue to survive on the basis of shared cultural values, history and approaches to key social issues. Sweden wishes to strengthen—and not fragment—Nordic cooperation by means of the EU.

Nor is there necessarily any contradiction between Sweden’s commitment to Europe and its longstanding involvement in global development efforts and the United Nations.

Common foreign and security policy

Sweden participates fully in the common foreign and security policy of the EU and actively influences its direction in a number of areas. For example, this applies to EU cooperation with Russia and the Baltic states, EU policy on the Baltic Sea region and supporting respect for human rights and the growth of democracy in other countries.

The EU’s common foreign and security policy is a voluntary agreement among sovereign nations, but in many cases the EU countries act collectively. Efforts to achieve peace in the former Yugoslavia have been at the top of the agenda. Aside from the peace process, humanitarian issues have been an important focus of attention. Sweden’s former prime minister, Carl Bildt, was appointed the EU mediator in Bosnia as well as the coordinator of peace-keeping efforts following the December 1995 treaty signed in Paris by Croatia, Bosnia and Serbia.

Although its traditional military non-alignment policy establishes clear limits to its cooperation in the defense field, Sweden supports and hopes to participate in the development of joint European peace- keeping and humanitarian efforts.


The EU agreement
Sweden’s agreement with the EU is one of the most important treaties the country has signed during the 20th century. A number of issues important to Sweden were resolved during the EU membership negotiations. The Swedish EU agreement included provisions that satisfied most of the specific demands that the Swedish government and Parliament had expressed. Here are the most important results of the negotiations:

EU institutions
Sweden has four votes in the Council of Ministers, 22 seats in the European Parliament and one member of the Commission. Sweden also nominates one judge to the Court of Justice and has twelve members on the Economic and Social Committee and on the Committee of the Regions, respectively. Swedish is an official EU language.

The EU budget
Sweden contributes to the common EU budget in proportion to the size of the country. Its gross contribution to the budget, without reference to any funds that may flow back to Sweden, is estimated at SEK 20 billion per year. This is equivalent to 4 percent of central government expenditures.

Sweden nevertheless demanded, and received, the right to pay a reduced contribution over the first four years. This “phasing-in” process is worth a total of about SEK 9 billion in 1995-99. Sweden will become a sizable net contributor to the EU budget. Subtracting funds returning to Sweden, mainly in the form of farm and regional subsidies, the annual net contribution will be around SEK 10 billion.

Environmental policy
During the negotiations, one important Swedish demand was that the country should not have to lower its environmental standards in fields where it has stricter rules than the EU. The outcome was that Sweden will be allowed to keep its rules while waiting for the EU to move closer to Swedish standards.

In the few areas where there are no current EU plans to move closer to stricter Swedish rules, Sweden will keep its rules for four years. During this period the EU will conduct a review of its environmental rules, including regulation of cadmium, arsenic and various chemicals. If Swedish and EU rules still diverge after four years, Sweden intends to retain its standards, citing the “environmental guarantee” in the 1957 Treaty of Rome.

Sweden has adopted EU rules on automobile emissions but retains certain special standards. Manufacturers will continue to be responsible for ensuring that their vehicles fulfill emission control requirements. As a result of its agreement with the EU, Sweden has also modified the technical terms of its tax rebates on environmentally friendly vehicles.

Regional development funds
Sweden considered it important for the EU to acknowledge that cold, sparsely populated areas of northern Europe are entitled to regional subsidies. The outcome of the negotiations was that the EU is introducing a new type of regional aid for areas with population densities below 8 inhabitants per km2. Nearly half of Sweden—its northern and western portions—is thus entitled to this special EU assistance, totaling about SEK 2 billion during 1995-99.

In addition, Sweden is entitled to a portion of existing regional subsidies in the EU. In all, it is expected to receive SEK 2.4 billion in EU regional aid per year. No part of Sweden is, however, considered poor enough to qualify for the EU’s special aid for less developed regions, which goes mainly to southern Europe.

Military non-alignment
As an EU member, Sweden will retain its military non-alignment. No Swedish participation in any future EU defense alliance is thus contemplated. This was a Swedish condition during the membership negotiations. The government has meanwhile stated that it does not intend to prevent other EU countries from intensifying their defense and security cooperation along the lines presented in the Maastricht Treaty of 1992.

Sweden also intends to become an observer, but not a full member, in the Western European Union (WEU), the defense organization of the EU countries. Sweden will promote a peace and security system that encompasses all of Europe.

Agriculture
In principle, the size and extent of Swedish agriculture make the country self-sufficient in most farm products. Because the Common Agricultural Policy (CAP) is among the most highly regulated and costly areas of the EU system, in the negotiations it was important for Sweden to ensure the survival of its agricultural sector. Sweden’s agreement with the EU ensured that output will remain equivalent to its current level. Quotas and other rules will guarantee Swedish farmers satisfactory levels of milk, sugar and grain production.

Sweden supports plans to reform EU agricultural policy in the direction of fewer regulations and subsidies. In the long term, EU markets must become more open to farm products from other countries, especially the rest of Europe.

In Swedish agriculture there is a trend toward cutting the use of toxic chemicals and pesticides, in response to consumer demands. Sweden has also managed to keep salmonella out of its poultry farms. Sweden was granted the right to continue its controls on imports of chicken and other products in order to avoid salmonella infection. Sweden will also retain its ban on antibiotic additives in animal fodder.

Sweden has a large-scale fishing industry, especially in the Baltic Sea. The country was granted quotas enabling it to maintain its existing share of Baltic fishing. As a result of EU membership, tariffs on Swedish seafood have been removed, greatly benefiting the country's fishing industry.

Openness, right of access and “snuff”
Like other EU countries, Sweden has a number of traditions, customs and distinctive cultural patterns that it does not wish to give up in order to join the EU. The widespread Swedish habit of using moist snuff (i.e. placing smokeless tobacco in the mouth) will thus be allowed to continue, even though this product is banned in the other EU countries.

Since before the dawn of history, the Swedes have been entitled to move freely through the forests and fields of their vast country. The customary right of access to nature applies to everyone in Sweden— including tourists and other visitors. But there is a corresponding obligation to respect nature and the landowner by not creating disturbances or littering. This right is not changed by EU membership.

The Swedish Constitution also gives citizens broad access to information on the inner workings of the public sector. Anyone can ask to read public documents on file at government agencies. Sweden intends to maintain this “principle of publicity” as an EU member. It also intends to advocate greater openness by the EU and easier citizen access to information about the EU decision-making process.

Sweden also received EU approval to retain restrictions on the alcoholic beverage trade. Wine, spirits and strong beer will continue to be sold exclusively at government-owned Systembolaget stores. Sweden will also continue to impose tighter restrictions than most other EU countries on the importation of alcoholic beverages by travelers.


Latest elections in Sweden to the Swedish Parliament and the European Parliament
PartyRiksdag election, 1994 in %EU election, 1995 in %Seats in EU Parliament
Left Party6.212.93
Social Democrats45.228.17
Green Party5.017.24
Center Party7.77.22
Liberal Party7.24.81
Christian Democrats4.03.9-
Moderates22.423.11

Sweden’s road to the EC/EU

1960 Sweden joins Denmark, Great Britain, Norway, Portugal and Switzerland in forming the European Free Trade Association (EFTA). Finland and Iceland join later.

1967-71 Sweden negotiates with the EC on the basis of an “open” application that does not rule out membership. Because of Swedish neutrality policy, however, membership is viewed as increasingly unlikely.

1972 A free trade agreement is reached between Sweden and the EC. It goes into effect in 1973 and mainly covers industrial products. Similar bilateral agreements are also concluded between other EFTA countries and the EC.

1984 Tariffs on industrial products between Sweden and the EC have now been entirely phased out. The EC and EFTA agree to expand their cooperation.

1987 Sweden declares its wish to join the EC single market.

1989 The EC and EFTA begin discussions on forming a European Economic Area (EEA), in practice covering all of Western Europe.

1990 EEA negotiations begin in Brussels. The Swedish government announces that its goal is EC membership.

1991 Sweden applies for EC membership.

1992 The EEA treaty is signed and formally goes into effect in 1994. EC heads of state and government approve an enlargement of the EC through accession by new members, with Sweden among the candidates.

1993 Sweden begins membership negotiations with the EU in Brussels.

1994 Membership negotiations end in March with an agreement which is signed at the Corfu meeting of the European Council in June. In November the Swedish people approve EU membership in a referendum.

1995 Sweden becomes an EU member, along with Finland and Austria. At the same time, Sweden withdraws from EFTA.


During its first year as an EU member, Sweden assigned high priority to a number of issues that require European cooperation in order to be resolved

Employment
An active policy to stimulate economic growth and lower unemployment. To combat European unemployment effectively, joint and concurrent efforts by many countries are necessary.

The environment
Tough rules and legislation on emissions and the use of chemicals. Because environmentally hazardous emissions pay no attention to national boundaries, the EU is an excellent forum for pursuing an effective environmental policy.

Equality between women and men
Both in the EU institutions and in member countries, much remains to be done to promote greater equality between the sexes. Women must be given a larger share of the important tasks in EU organizations.

Openness
The work of the EU is still characterized by too many closed doors. Sweden would like greater openness and transparency to be guiding principles of all EU work.

Free trade
Because of tariffs, quotas and other trade barriers, consumers pay unnecessarily high prices for the goods they buy. The EU has too many trade barriers, and Sweden is working to open up trade as much as possible.

Agriculture
The EU’s common agricultural policy is too old-fashioned and highly regulated. It must be reformed in ways that benefit both consumers and the environment.

The struggle against narcotics and white-collar crime
EU cooperation in the legal and police fields needs to be made even more efficient. Anita Gradin, the EU Commissioner from Sweden, is responsible for these issues within the European Commission.



 This fact sheet is part of SI’s information service. It can be used as background information on condition that the source is acknowledged.

March 1996
ISSN 1101-6124
Classification: FS 94 b Qadd


Fact Sheets on Sweden