Country Data Sweden
Sweden is a member of the European Union with Stockholm as its capital and Swedish as its official EU language. The country joined the EU in 1995 and participates fully in the EU single market. Sweden is not part of the euro area and continues to use the Swedish krona as its national currency, while remaining closely aligned with EU economic and financial frameworks. Sweden has been a member of the Schengen area since 2001, supporting free movement across much of Europe. With a relatively large geographic area, a moderate population, and a high GDP per capita measured in purchasing power standards, Sweden ranks among the EU’s most prosperous and competitive economies.
Politically, Sweden operates as a constitutional monarchy and parliamentary democracy. Executive power is exercised by the government, led by the prime minister, while the monarch serves as head of state with primarily ceremonial and representative functions. Legislative authority rests with a single-chamber parliament, whose members are elected through a proportional representation system. Sweden is a unitary state, administratively divided into counties and municipalities that enjoy a high degree of local self-government, particularly in areas such as education, healthcare, and regional development.
Sweden’s economy is diversified, innovation-driven, and strongly export-oriented. Public administration, education, healthcare, and social services account for a substantial share of economic activity, reflecting Sweden’s well-developed welfare model. Wholesale and retail trade, transport, accommodation, and food services also play an important role, alongside a strong industrial base. Swedish industry is internationally competitive, particularly in sectors such as automotive, machinery, telecommunications, clean technology, pharmaceuticals, and advanced manufacturing. Trade is closely integrated with the European single market, with the majority of exports going to EU partners, especially Germany, the Netherlands, and neighboring Nordic countries. Outside the EU, the United States and the United Kingdom are among Sweden’s most important export destinations. Imports similarly originate largely from EU member states, complemented by significant trade with global partners such as China and the United States.
Within the European Union, Sweden is an active participant in legislative and policy-making processes. It is represented by Swedish Members of the European Parliament and takes part in Council of the EU meetings, where government representatives contribute to shaping EU legislation and coordinating common policies. Sweden has held the rotating Presidency of the Council of the EU on several occasions, most recently in the first half of 2023, demonstrating its continued engagement in EU governance and agenda-setting.
At the level of the European Commission, Sweden is represented by its nominated Commissioner, contributing to the Commission’s work across key policy areas. Sweden is also represented in EU advisory bodies such as the European Economic and Social Committee and the European Committee of the Regions, ensuring that economic, social, and regional perspectives are reflected in EU decision-making.
Sweden maintains a permanent representation to the European Union in Brussels, which serves as the primary interface between Swedish authorities and EU institutions. As a high-income member state, Sweden contributes to the EU budget in line with its economic capacity. These contributions support EU-wide programmes and projects focused on innovation, sustainability, social cohesion, and economic development, aligning closely with Sweden’s long-standing commitment to a competitive, inclusive, and environmentally responsible Europe.
