Changes

Postwar prosperity provided the foundations for the social welfare policies characteristic of modern Sweden.  

Postwar prosperity provided the foundations for the social welfare policies characteristic of modern Sweden.  

Despite extensive social welfare programs, financed by high taxes on individuals, Sweden remains a capitalist country, and the main industries and banks are privately owned.  Sweden enjoyed excellent economic performance until the world crisis of the 1970s, after that, economic efficiency declined considerably. Prior to 1983, Sweden and other northern European social democracies experienced full employment, large social benefits, modest income in equality, and a near total abolition of poverty. After 1983 unemployment became a major problem. The distance between the political parties narrowed after 1968, as the Social Democrats and the middle class parties grew more similar.  

Despite extensive social welfare programs, financed by high taxes on individuals, Sweden remains a capitalist country, and the main industries and banks are privately owned.  Sweden enjoyed excellent economic performance until the world crisis of the 1970s, after that, economic efficiency declined considerably. Prior to 1983, Sweden and other northern European social democracies experienced full employment, large social benefits, modest income inequality, and a near total abolition of poverty. After 1983 unemployment became a major problem. The distance between the political parties narrowed after 1968, as the Social Democrats and the middle class parties grew more similar.  

Sweden became a member of the [[European Union]] (EU) in 1995. In September 2003 Sweden held a referendum on entering the European Monetary Union. The Swedish people rejected participation, with 56% voting against and 42% for. All parliamentary parties pledged to respect the outcome of the referendum. No new referendum is planned for the foreseeable future.

Sweden became a member of the [[European Union]] (EU) in 1995. In September 2003 Sweden held a referendum on entering the European Monetary Union. The Swedish people rejected participation, with 56% voting against and 42% for, and the issue of adopting the Euro has not been reopened.

====Politics====

====Politics====

The Social Democratic Party was the largest party after 1914 and alone or at the head of a coalition governed almost continuously from 1932 to 1976. From 1946 to 1969 Tage Fritjof Erlander was party leader and prime minister; was the architect of Sweden's social welfare state. He was succeeded in 1969 by Olof Palme, who was prime minister until 1976 when a non-socialist conservative coalition (Moderates, the Center Party, the Liberals and the Christian Democrats) took office. Palme headed a Social Democratic minority government from 1982. Palme was assassinated in 1986; Ingvar Carlsson then led the party until its electoral defeat in 1991 and brought it back to power at the head of a minority government in 1994. The Social Democrats are closely tied to the labor unions and 90% of Swedish workers belong to a union. In 1991 they suffered their worst defeat in half a century, but in 1994 and 1998 elections they rebounded. As in many countries, [[New Left]] and environmental (Green) forces emerged in the 1970s; in recent elections each wins 5% to 10% of the vote.  The Left Party emerged from Communism and frequently joins in Social Democrat coalitions.

The Social Democratic Party was the largest party after 1914 and alone or at the head of a coalition governed almost continuously from 1932 to 1976. From 1946 to 1969 Tage Fritjof Erlander was party leader and prime minister; was the architect of Sweden's social welfare state. He was succeeded in 1969 by Olof Palme, who was prime minister until 1976 when a non-socialist conservative coalition (Moderates, the Center Party, the Liberals and the Christian Democrats) took office. Palme headed a Social Democratic minority government from 1982. Palme was assassinated in 1986; Ingvar Carlsson then led the party until its electoral defeat in 1991 and brought it back to power at the head of a minority government in 1994. The Social Democrats are closely tied to the labor unions and 90% of Swedish workers belong to a union. In 1991 they suffered their worst defeat in half a century, but in 1994 and 1998 elections they rebounded. As in many countries, [[New Left]] and environmental (Green) forces emerged in the 1970s; in recent elections each wins 5% to 10% of the vote.  The Left Party emerged from Communism and frequently joins in Social Democrat coalitions.