Impact of Sweden’s Integration to the EU

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Impact of Sweden’s Integration to the EU

The Geography of European Integration

Alexandrou Efstratia-Celia

Category A

Sweden and its experience from the process of integration and enlargement

The enlargement process has been a top priority for the European Union during the first years of the 21th century. Sweden’s accession was in 1995 along with Austria and Finland, when these countries became members of the European Union. However, even before this accession, Sweden –as well as the other two countries- followed a path of increasing commitment to the European integration process – from a free trade arrangement, via the European Economic Area (the EFTA states’ affiliation to the Internal Market), to full EU membership. Moreover, Sweden’s economy was highly internationalized, and at the same time quite similar to its EU neighbors when it came to income and structure. Keeping this in mind, joining the EU in 1995 was not an actual large step.

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At the turn of the year 1991- 1992, Swedish economy –along with others- had been facing a downturn for about two years. The Maastricht negotiation was in its final stage but the Internal Market Program was also a central theme on the political agenda, in the European Community as well as in the EFTA (European Free Trade Association) states. In 1992 the Internal Market was formally accomplished and the EEA (European Economic Area) agreement was signed. It was after the collapse of the Communist bloc that made neutrality a problem and full accession to the EC had become a primary political objective. In the end of 1992, the Swedish currency fell dramatically, with a variety of consequences on exports (Central Bank, Sweden, 1996). Following the above, a period of low inflation began. In January 1994, Sweden entered the Internal Market through the EEA agreement. The same year, a referendum brought EU issues to the public debate, and in January 1995 Sweden became members of the EU.