Jesper Böjeryd on the risks of Sweden adopting the euro
Jesper Böjeryd, a researcher in economics at Stockholm University, writes an op-ed in newspaper Svenska Dagbladet about a possible Swedish membership in the eurozone. ”Today’s debate ignores major potential costs,” he says.
Jesper Böjeryd, researcher in economics at Stockholm University.
In the opinion piece, Jesper Böjeryd highlights the risks associated with Sweden adopting the euro, arguing that it could lead to higher inflation and greater economic vulnerability. He writes that the monetary policy of the European Central Bank is primarily designed for the euro area as a whole, and that Sweden, as a small economy, would carry less weight in the bank’s decision-making.
Böjeryd also warns that Sweden would assume greater responsibility for the debts of other eurozone countries. ”In practice, this means that Sweden would, in a worst-case scenario, commit to lending to countries that currently have historically high levels of public debt.” According to Böjeryd, this could result in both higher interest rates on Swedish government borrowing and increased costs for taxpayers.
He further criticizes the ECB’s government bond purchase programmes, arguing that countries with stronger economies risk subsidising the borrowing costs of weaker member states. Referring to existing research, Böjeryd notes that the cost of such subsidies has been significant for countries including Germany. Instead, he proposes ”the Danish model”, in which the Swedish krona would be pegged to the euro without Sweden becoming a full member of the euro cooperation.
Last updated: 2026-05-28
Source: Department of Economics