Should Sweden Join the Eurozone?

774 Words4 Pages
Should Sweden Join the Eurozone? There are many debates about Sweden joining the Eurozone Some advantages are: * If Sweden joins the Eurozone along with other countries that have the same currency (17 countries) Sweden will benefit from it because they would be able to get better, cheaper source of materials and the consumers will be able to buy the products and services in a cheaper price for example, new car prices are much higher in the UK than elsewhere, and a single currency could help reduce these price differentials. This could lead to an increase in the country’s income and countries outside the EU zone would be able to make cheaper transactions and invest more leading to a balanced balance of payment. * Consumers and tourists will benefit from the Eurozone and that’s due to low transaction costs or none. Tourists wouldn’t have to exchange their money when travelling and the risk of having problems would be reduced when transferring a large amount of money abroad. This would lead to an increase in the country’s GDP by 2% by year which is an advantage. * Having a common currency in the EU leads to cheaper interest rate and that’s due to some countries taking charge in of the fiscal responsibility. This would lead to more investment, more jobs and lower mortgages. * The interest rates are set by the ECB (European central bank) for the whole Eurozone. This will help keep inflation low. * The euro has brought inflation down to a low and stable level. In the 1970s and ‘80s many EU countries had very high inflation rates, some of 20% and more. Inflation fell as they started preparing for the euro and, since its introduction, has remained around 2% in the euro area. Price stability means that ordinary citizens’ purchasing power and the value of their savings are better protected, which helps make the future more certain. However joining the
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