Sound as a Kroner

15 September 2003


Lindh Murder Won't Stop "No" on Euro

Sweden's vote on joining the Eurozone Sunday took a sad and awful twist when the "Queen of Yes," Foreign Minister Anna Lindh, was stabbed to death as she shopped last week. Before her murder on Wednesday, the "No" bloc was likely to win, but the sentimental effect of her death may make this a closer race. It shouldn't be.

There is a myth in Europe and elsewhere that being part of the Eurozone means faster economic growth. If this were the case, the lethargy seen in Germany and France would not exist. Meanwhile, Britain has done well without being in the Eurozone.

Sweden, at this stage, needs to have the monetary tools that the membership would deny it. It is not in need of currency stability (the big selling point of the euro a few years back), but it does need the ability to run deficits that would not be permitted if the kroner were gone.

The Swedes realize this, with both camps saying that a decision either way would not take effect immediately -- "Yes" does not mean the euro in Stockholm tomorrow, and "No" does not mean "never." This issue won't be firmly decided, but Ms. Lindh's death makes it difficult to really care passionately. One hopes her killer is caught; Prime Minister Olaf Palme's has not, and he was assassinated in 1986.

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