Sweden’s finance minister Elisabeth Svantesson of the Moderate Party has announced plans to launch a formal inquiry into the pros and cons of adopting the euro if her party secures continued power following the parliamentary election in September. This statement came during a recent parliamentary debate on euro membership, where Svantesson emphasized the need for a thorough examination of the issue, particularly in light of the evolving security situation in Europe. She described the task as one she would prioritize early in the next mandate period, underscoring that any move toward euro adoption would remain many years away, even if the commission recommended it. Current economic considerations Sweden has maintained its independent currency, the Swedish krona, since joining the European Union in 1995. Although the 1994 accession treaty included an obligation to adopt the euro eventually, the country has avoided this by not entering the mandatory Exchange Rate Mechanism II (ERM II), which is a prerequisite for eurozone entry. Sweden meets the convergence criteria for adoption but has deliberately opted out of the mechanism, preserving monetary policy independence through the Riksbank. This approach contrasts with other EU nations that either fulfill the criteria but choose exemptions or fail to meet them. Swedes decisively rejected euro membership in a 2003 referendum, with 56% voting against and 42% in favor. Public opinion has shifted somewhat over time but remains predominantly skeptical. A poll by Statistics Sweden in May showed 49.5% opposed, 32% in support, and 18.5% undecided. Recent years have seen renewed discussion driven by geopolitical and economic developments, including Russia’s invasion of Ukraine, which prompted Sweden to join NATO in 2024 and heightened the appeal of deeper EU integration, as well as uncertainties from U.S. tariff policies under President Donald Trump. These factors have prompted some experts to argue that the benefits of euro membership now outweigh the risks. A notable report released late last year by the independent Swedish Free Enterprise Foundation, involving economists like Professor Lars Calmfors (emeritus from Stockholm University), concluded that economic advantages – such as increased cross-border trade, foreign investment, and greater influence over European capital market integration, have strengthened. Calmfors, who previously advised against adoption during EU entry, now highlights that Sweden’s monetary policy already shadows the European Central Bank’s to stabilize exchange rates for trade, yet without a seat at the decision-making table. Joining would provide input into eurozone policy while eliminating exchange rate risks and transaction costs. Business voices, including from think tank Timbro, describe the krona’s long-term weakness and volatility as risky in a globalized economy, especially amid geopolitical instability. The euro’s stability through multiple crises is cited as a counterpoint to the krona’s fluctuations, influenced partly by the Ukraine war and domestic issues like the Northvolt bankruptcy. Sweden’s independent monetary policy has proven valuable in past crises, including the 2008-2009 financial meltdown, the subsequent eurozone crisis, and the COVID-19 pandemic, allowing tailored responses that might not align with eurozone-wide priorities. Critics argue that full membership would dilute this flexibility, as decisions would reflect the collective interests of 20 nations, potentially leaving Sweden’s specific needs underserved despite a voice in the process. Political challenges ahead Politically, the path to any euro adoption faces significant hurdles. The Moderate Party, the largest in the current minority coalition government led by Prime Minister Ulf Kristersson, supports the inquiry into the pros and cons of adopting the euro, as do the Liberals, who requested the recent parliamentary debate and advocate for adoption. The Centre Party has pushed for an investigation even before the election. However, opposition is strong from the Sweden Democrats, the key supporter of the coalition, whose economic spokesperson Oscar Sjostedt called the euro a “massively risky bet” endangering Swedish welfare. The Social Democrats, the largest opposition party and likely frontrunner in polls, do not rule out an inquiry but are not actively pursuing euro entry, with figures like Mikael Damberg noting the 2003 referendum settled the matter for now. The Green Party, Left Party, and Christian Democrats also favor retaining the krona. The coalition’s reliance on Sweden Democrat support makes progress dependent on their stance, which remains firmly against. Even if the Moderates prevail post-election, any commission would need to navigate these divisions and build broader consensus. Euro adoption would require parliamentary approval and likely another referendum, given historical precedent and public sentiment. Some practical accommodations exist, such as occasional euro acceptance in tourist-oriented shops, border areas, or formerly in payphones, but the euro holds no official status, and legal tender remains the krona, decided by parliament. Municipal claims of “official” euro status are largely symbolic marketing efforts without legal force. The debate reflects broader questions about Sweden’s place in Europe amid uncertainty. Proponents see euro membership as enhancing security and economic resilience through deeper integration. Opponents value the krona’s autonomy as a buffer in crises. With the September 2026 election approaching, the inquiry proposal revives a dormant issue more than two decades after the referendum, potentially setting the stage for renewed national conversation if the center-right holds power. Whether public opinion shifts enough to overcome longstanding resistance remains uncertain, but geopolitical pressures continue to tilt the scales for some toward closer EU ties. Sources: Reuters, Local Sweden, Frankfurter Rundschau, Bound.co Caption: A view of the skyline of the financial district with the European Central Bank (ECB) in Frankfurt am Main, Germany, 30 December 2025. EPA/RONALD WITTEK