Swedish PM promotes euro riches

A majority in Sweden still oppose the euro

Swedish prime minister Goran Persson has said Swedes would be richer if his country votes to adopt the euro.

The comments come as Mr Persson starts the final leg of campaigning ahead of a 14 September referendum on whether Sweden should join the 12 countries already using the single currency.

Sweden's pro-euro lobby has argued that becoming part of the eurozone would increase competition and lead to price transparency, resulting in lower food prices.

But many ordinary Swedes still fear that adopting the euro would lead to higher prices during the changeover period.

And opponents of the euro have been ahead in the opinion polls since March.

Political commentators say Mr Persson must make sure his campaigning does not undermine his position of authority in the case of a "no" vote.

Safety in numbers?

Mr Persson also stressed that a "yes" vote would increase Sweden's power within the European Union and create more stability.

"There are economic arguments. They are important, but even so, to me they are not the decisive ones," Mr Persson said in a speech.

"I believe there are other arguments. The political ones, namely that I want Sweden to take part and have influence.

"It is safer to be part of a bigger currency than to be alone on the international financial markets' stormy speculative oceans.

"If we actively say "no" to the euro we are sending a clear signal that Sweden is not ready to take responsibility for Europe's future," he cautioned.

Good for business?

Swedish business leaders who favour the euro have stressed the need to remove barriers to trade as a key reason to adopt the single currency.

"Different currencies is one such barrier," the leading Swedish businessman Jacob Wallenberg told BBC World Business Report.

"I also think it is important that we make Sweden as interesting and as appealing as possible for foreign investors," said Mr Wallenberg, chairman of SEB Skandinaviska Enskilda Banken, vice chairman of Atlas Copco, Electrolux and Scandinavian Airlines, and a director of ABB.

"If you have another currency than the rest of the eurozone, it makes you, at least on the margin, less interesting."

The "yes" lobby has also boasted that adopting the euro would create more than 100,000 new jobs.

But independent economists and anti-euro campaigners have said the promises are exaggerated.

Sweden, the UK and Denmark are the only three of 15 EU states not to have adopted the euro.

Analysts say the outcome of the Swedish referendum will have some impact on public opinion in Denmark and Britain.