Sweden
A military power during the 17th century, Sweden has not participated in any war in almost two centuries. An armed neutrality was preserved in both World Wars. Sweden's long-successful economic formula of a capitalist system interlarded with substantial welfare elements has recently been undermined by high unemployment, rising maintenance costs, and a declining position in world markets. Indecision over the country's role in the political and economic integration of Europe caused Sweden not to join the EU until 1995, and to forego the introduction of the euro in 1999. In the first referendum on membership after the euro's introduction in 12 of 15 EU countries, Swedish voters rejected it by a clear majority in September 2003. With the ending of the Cold War, Sweden felt able to join the European Union in 1995 although it still declines to become a Nato member.
Sweden is known throughout the world for its neutrality. This policy has led to a number of Swedish politicians taking on international roles, often mediating between conflicting groups or ideologies.
The Social Democrats have been in government for most of the last 70 years, reflecting widespread support for their egalitarian and welfare policies, although the government has faced criticism for failing to reduce unemployment and for high taxes.
The country runs on "the Swedish model" - a mixed economy founded on public-private partnership. It has traditionally featured centralized wage negotiations and a heavily subsidized social-security network. The Swedes’ standard of living and life expectancy are almost second to none. The country is also a common destination for refugees and asylum seekers - over 10% of its population are immigrants. Nevertheless, a below-par economic performance has questioned the sustainability of Social Democrat policies, as has an oppressive tax burden required to finance a "cradle-to-grave" welfare state. Further tax rises are in the pipeline to cover the mounting costs of the welfare state.
Swedes voted in a referendum in 1980 to phase out nuclear power. It was nearly two decades before the first reactor was shut down in 1999. Another followed in 2005. A further 10 remain to be decommissioned.
General elections are due in 2006.
There are currently no known threats to expatriates traveling to or residing in Sweden.
In June 2001, Sweden hosted the European Union Summit in the city of Gothenburg. The event drew nearly 20,000 protesters and resulted in a number of injuries after clashes erupted with police. As in other Western countries, future international events will likely draw additional protests of this nature.
