Background:
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 was challenged in the 1990s 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 delayed Sweden's entry into the EU until 1995,
and waived the introduction of the euro in 1999.