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Sweden to join Nato: ‘We are leaving one era and entering another”

Sweden on Monday officially announced it will apply for Nato membership as a deterrent against Russian aggression, entering a "new era" as it reverses two centuries of military non-alignment.

Sweden to join Nato: 'We are leaving one era and entering another''
Moderate leader Ulk Kristersson (right) and Social Democrat leader Magdalena Andersson (left) at the announcement of Sweden's decision to join Nato. Photo: Henrik Montgomery/TT

In a joint press conference held with Ulf Kristersson, leader of the opposition Moderate Party, Prime Minister Magdalena Andersson said joining the alliance would act as a deterrent against Russian aggression. 

“The government has decided to inform Nato that Sweden wants to become a member of the alliance,” Andersson told reporters a day after neighbouring Finland made a similar announcement.

“We are leaving one era and beginning another,” she said, adding that Sweden’s Nato ambassador would “shortly” inform Nato.

Ulf Kristersson, whose party has long supported membership of the alliance, said that he wanted to put party political differences aside to support the government in its decision.  

“There are many major issues where we think differently, but we are going to take a joint responsibility for the process of taking Sweden into Nato,” he said. 

Sweden and Finland have both expressed a desire to act in lockstep on Nato membership and submit their applications jointly.

“We expect it shouldn’t take more than a year” for the alliance’s 30 members to unanimously ratify Sweden’s membership application, Andersson said.

The announcement was expected after her Social Democratic party on Sunday backed membership, in a dramatic turnaround after having opposed the idea since the birth of the Western military alliance.

It came after a debate in parliament in which all parties apart from the Green Party and Left Party spoke in favour of Sweden joining the alliance.  

“It is now clear that there is a broad majority in Sweden’s parliament for Sweden joining Nato,” she said. 

After Sweden’s announcement, Denmark, Norway and Iceland published a joint statement in which they promised to Sweden “by all means necessary” if the country is attacked in the gap between application and admission to the alliance. 

“Should Finland or Sweden be victims of aggression on their territory before obtaining Nato membership, we will assist Finland and Sweden by all means necessary,” the three countries said. “We immediately initiate preparations in order to effectuate these security assurances.”

Russia’s president, Vladimir Putin, said on Monday that Sweden and Finland joining Nato did not represent a direct threat to Russia’s interests, but he said that if Nato began to site equipment on their territories, Russia would have to respond. 

“Russia has no problems with these states (Finland, Sweden). There is no immediate threat to Russia,” he said at a meeting of the Collective Security Treaty Organisation, which groups Russia with Belarus, Armenia, Kazakhstan, Kyrgyzstan and Tajikistan.

“But the expansion of military infrastructure into this territory would certainly provoke our response,” he said.  

Sweden’s defence minister Peter Hultqvist is flying to Washington on Monday, where he will meet his counterpart Lloyd Austin.

Member comments

  1. Utter madness, Sweden is selling it’s soul to the US, they are the ones controlling NATO. Do what the US says or else. Sad day imo

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MONEY

Swedish central bank: Cuts to key interest rate in May or June ‘likely’

Sweden's Riksbank on Wednesday left the country's main interest rate unchanged at 4 percent, with cuts in May or June "likely".

Swedish central bank: Cuts to key interest rate in May or June 'likely'

“Inflation is in the process of stabilising at the [2 percent] target, but inflationary pressures are still somewhat elevated,” the bank wrote in a press release accompanying the announcement.

It was widely expected that the bank would choose to keep the key interest rate unchanged at 4 percent, the highest level since 2008.

“It is likely that the [key interest] rate can be cut in May or June if inflation prospects remain favourable,” it added.

According to the bank’s forecast, it expects to lower the key interest rate three times over the next year, reaching 3.2 percent by the first quarter of 2025 – significantly lower than the 4.1 percent prediction from its November 2023 forecast.

The bank also revised its forecasts for GDP and CPI (consumer price index) inflation. GDP is expected to stand at 0.3 percent this year, up from the previous prediction of -0.2 percent, CPI inflation is predicted to stand at 3.5 percent, down from the previous prediction of 4.4 percent, while the prediction for CPIF inflation (consumer price index with a fixed interest rate, the measure favoured by the Riksbank), remains the same at 2.3 percent for 2024.

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There are a few possible risk factors which could affect these predictions, it writes, including new supply shocks due to geopolitical unrest, the krona continuing to weaken, or companies’ pricing behaviour not changing as expected.

Experts from major Swedish banks welcomed the decision, adding that the Riksbank may lower the key interest rate more often than suggested in its forecast.

“We think there will be even more drops to the interest rate,” head analyst at Nordea, Susanne Spector, told TT newswire, adding that there is a “high chance” that the rate could be lowered as soon as May.

SEB agreed, predicting four drops to the interest rate and a “slightly higher chance” of a drop to the rate in May rather than June.

“For households under pressure an earlier drop is positive,” SEB interest strategist Amanda Sundström told TT.

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