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BREXIT

Stockholm hopes for gains from Brexit – but still worries about the losses

Stockholm is at a Brexit crossroad. It's time for the Swedish capital to choose its path after its closest friend in the EU leaves the union. Alex Macbeth investigates in this article, also published in The Local's 'Brexit & You' newsletter.

Published: 8 March 2018 15:36 CET
Stockholm hopes for gains from Brexit – but still worries about the losses
Brexit is a two-edged sword for Stockholm. Photo: Henrik Montgomery/TT

This article is available to Members of The Local. Read more Membership Exclusives here.

In the landscape of Sjöwall & Wahlöö's Martin Beck novels from the 1960s, Stockholm is a city mid-transformation: old houses are knocked down to give way to the needs of a new post-war economy.

Fast forward nearly 50 years later and Stockholm is once again at a crossroad, albeit businesses and not the city's terrain.

“Before the Brexit referendum, the UK was Stockholm's most important export market,” Andreas Hatzigeorgiou, chief economist at the Stockholm Chamber of Commerce, told The Local. Germany and Norway are Sweden's.


Andreas Hatzigeorgiou, chief economist at the Stockholm Chamber of Commerce. Photo: Maria Agrell/Stockholm Chamber of Commerce

“Since the referendum however there have been fluctuations with trade. Businesses are worried about what will come next,” adds Hatzigeorgiou.

The UK is an “extremely important” market for Stockholm-based and Swedish companies, he says. In manufacturing, pharma and financial services, Swedish companies work very closely with the UK.

Truck maker Scania exports heavily to the UK market; AstraZeneca, the UK-Swedish pharmaceutical giant, perhaps best illustrates the intertwined relationship.

While “no company wants to cut down on business in the UK,” says Hatzigeorgiou, Brexit is a two-edged sword for Stockholm, with losses and gains to be made.

“Finance firms we are talking to say we are a good alternative to London,” adds the chief economist at the Stockholm Chamber of Commerce. And UK companies are already relocating to Stockholm or are looking towards the Scandinavian financial services capital for the future.

“We have received, as an estimate, about 40-50 more requests per year from the UK since the Brexit referendum,” Anna Gissler, CEO of Invest Stockholm – the investment promotion agency for the Swedish capital – told The Local.

“We are certain most UK-based companies are still contemplating and preparing in case the Brexit outcome is not beneficial to their type of organisation or business model, and that we will see more definite numbers after the UK has officially exited the EU,” adds Gissler.

Stockholm however is not aggressively lobbying to lure UK businesses in the same way that Lisbon or Milan are. The city doesn't need to, claims Gissler.

“Our data centre industry is booming, we are home to some of Europe's leading fintech companies and we have been, for a long time, a world leader in gaming and music tech. All this creates a virtuous circle of growth that is very attractive to talents and investors”, says Gissler. 


A conference for women in tech in Stockholm last year. Photo: Magnus Hjalmarson Neideman/SvD/TT

In 2017, the capital invested into Swedish tech startups doubled compared with 2016. More than 10.5 billion Swedish krona (€1,03 billion) were invested into 442 startups, according to Industrifonden's Swedish Tech Funding Report 2017. UK investors accounted for 32 per cent of all investments, more than from any other country and overtaking the US to claim top spot.

Sweden's 22 percent corporate tax rate is lower than that of Milan or Madrid, and the Swedish capital has the right mix of ingredients for companies caught in Brexit uncertainty and perhaps looking to relocate.

“Stockholm's DNA is symbolized by an open and permissive climate,” says Invest Stockholm's Gissler, adding that the closeness to the UK, Swedes' familiarity with the English language and the cultural similarities make Stockholm an ideal location for British companies looking to bypass any potential Brexit fallout and keep a foot in the EU market.

While Sweden is the second-highest EU27 ranked country in the World Bank's Doing Business rankings, the city is also a victim of its own success. The founders of Sweden's best known tech startup, streaming service Spotify said in 2016 that a housing crisis in Stockholm, where prime office rents per square metre are nearly €700, is preventing the city's ability to attract foreign talent, reported The Local Sweden.

How will Brexit affect Sweden, Britain's closest partner in the EU, and the other EU nations? Sign up for The Local's 'Brexit & You' newsletter to get a full round-up of Brexit issues from across Europe. 

For members

BREXIT

British actor married to Swedish pop star gives up post-Brexit fight to stay in Sweden

Former Bollywood actor Kenny Solomons' imminent return to the UK after failing to get post-Brexit residency has made national news in Sweden thanks to his marriage to the singer from the band Alcazar. He tells The Local why he's leaving.

Published: 19 June 2024 15:29 CEST
British actor married to Swedish pop star gives up post-Brexit fight to stay in Sweden

The QX gala – Sweden’s glitzy, televised celebration of gay culture – is not the first place a man in his 20s would go to find a future wife. 

But that’s what happened to British actor Kenny Solomons.

Solomons, now 37, was already a well-known face in Sweden after playing the superhero in adverts for the internet provider Bredbandsbolaget. He was there to give out an award. Tess Merkel, singer for the nu-disco band Alcazar – one of Sweden’s most successful ever groups – was there to receive one.

“It was utterly insane,” Solomons remembers. “I had had a few drinks and then I woke up the next day in this typical Swedish apartment with kids’ toys everywhere. I was like, ‘what the fuck is going on?'”

“The kids were away with their dad, and Tess went off to work the next day and she left a note – as a joke – on the kitchen table that said ‘sorry I left you, but I took off to plan our wedding’. I thought it was a one-night stand. I was 25 years old and she was 17 years older. I didn’t expect to be married.”

The actor Kenny Solomons (right) arrives at the QX Gala in 2016. Photo: Anders Wiklund/TT

But in 2015 they got engaged and then in 2017, they married in the Indian holiday paradise of Goa, making it legal for Sweden with a ceremony in Stockholm City Hall the next year. 

By then, Solomons was so deeply embedded in Stockholm’s celebrity whirl that everything from the Brexit referendum to the deadline for post-Brexit residency had more or less passed him by. It was only when he took a trip to Greece in the summer of 2022, his first international trip since the pandemic broke out, that he realised the mistake he had made. 

“We flew back through Serbia, which is outside the European Union, so as we were coming in through the Swedish border, they said ‘hey, you do realise that you’re going to need to send in a whole load of information’, and I was completely shocked. I had no idea. I mean, to some people, I might sound like an absolute moron, but I just wasn’t aware of it.” 

In some ways his ignorance was unsurprising, given the Swedish authorities’ decision not to contact British citizens directly, even digitally, to inform them of the need to apply for post-Brexit residency by the end of 2021, although there was information published online.

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Unlike many Brits in Sweden, Solomons was at that point completely integrated, living in the upmarket Stockholm district of Hammarby Sjöstad, and speaking almost exclusively Swedish.   

“It wasn’t originally the plan to do everything in Swedish. It was after I started working and running a business here, that it just sort of kicked in,” he remembers. “After three or four years, I suddenly was like, ‘ah, OK, I’m speaking Swedish. My mother would be very proud, that me, a dyslexic boy from Southend-on-Sea in Essex, could speak even one word in another language!”

Because he only hung out with Swedes and rarely met other Brits, he had simply not heard about the Brexit deadline. 

“All of my friends are in the industry. I socialise among those who also work as artists here in Sweden,” he explains. “When you work as an entrepreneur or an artist, there is nobody to give you that little nudge and say, ‘hey, there is a thing going on called Brexit and it’s going to affect your status here in Sweden’. I had absolutely no idea that it would affect me in this way, and would still be affecting me four years on.”

Looking back, he remembers spending much of 2020 and 2021 desperately trying and eventually failing to save his chain of barbershops and hair-replacement therapy centres from bankruptcy due to the pandemic.

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When he did apply for post-Brexit residency – nearly a year late – he was rejected as the Migration Agency does not treat ignorance as “reasonable grounds” for missing the deadline. He appealed the decision to the Migration Court, but this month decided he had had enough of waiting, given that rejection was “inevitable”. 

“It’s now 19 months since I sent in my appeal to the Migration Court, and the pressure of not knowing, every day, and the pressure of having to say ‘no’ to career opportunities outside of Europe, and the pressure of not knowing with 100 percent certainty that I can live and work in Sweden in the long run was just affecting my health, and my mental health as well,” he says.

“I hit the wall, was suffering with anxiety, and was incredibly unhappy. So I made the decision.” 

He’s now going to return to the UK and apply for spousal reunion with Merkel. As he has no young children of his own, there is little chance of getting granted the right to do this from within Sweden.

Since he left the UK as a young man, his mother has died, and his 60-year-old father has left their childhood home in Essex and moved to Chester on the other side of England, somewhere he has never been. 

“I guess I’ll go and sleep on his couch,” he says. “I can moan and be upset and say all these awful things. But I have my health and I have a place to go. There are people in a similar situation that don’t have any connections or ties left in the UK any longer, so I’m very grateful to at least have a couch to crash on while I figure out this next step.” 

His father got married in the middle of June, and Solomon’s plan is to return for the wedding party on August 24th, handing in his application for spousal reunion in Sweden within days of arrival. He has no idea if he will then have to wait six months, or two years, before he is granted the right to live again in Sweden.  

“My wife and I, we really always try to make the best out of a bad situation, whatever it is, so when I leave Sweden and start my process from my dad’s I want to continue to be able to give back to this country.” 

READ ALSO:

His next plan is to return to India, where he spent several years before coming to Sweden working as an actor in Bollywood films. 

“You’re gonna think I’m completely nuts. I want to fly to the most northern part of India and run from North India to South India, the whole way, and raise money for Läkare Utan Gränser [the Swedish arm of the global medical charity Médecins Sans Frontières (MSF)].” 

He says that one of the silver linings to his situation is that as someone involved in Swedish showbusiness, his case has received media coverage, unlike hundreds of other British citizens who have been victims of Sweden’s strict application of the EU Withdrawal Agreement. 

“It’s a very, very great luxury and something I don’t take for granted that I have a platform that can be used for to spread my thoughts and my opinions,” he said, adding that he has also enjoyed sharing information with and trying to help other British people in the same situation. 

Tess Merkel’s band Alcazar performed at the Eurovision Grand Final in Malmö in 2024. Photo: Jessica Gow/TT

Now he’s looking forward to returning back to the UK, where family and friends were in May blown away by the surprise appearance of Merkel and the rest of Alcazar at the Eurovision Grand Final. 

“I had to keep it a secret from my family in England. I couldn’t tell anybody because Alcazar had written a contract with Eurovision,” he remembers. “So my family didn’t know, and they were just shocked when they came on. They Facetimed me just afterwards and said, ‘they really made fun of Alcazar. I felt really sorry for them’.”

But Alcazar, he said, had no issues with being made the butt of a joke about their ‘reunion’ not quite being the hoped-for Abba appearance. The are, he says, “a playful band”. 

“She is that person in real life. She’s absolutely fantastic. She’s an absolute gem. She’s my best friend,” he said of Merkel. “She might say to you, ‘it will be quite nice to have a bit of a break from Kenny. He’s a pain in the ass’. But taking this step is like losing my right hand, because we are so co-dependent on each other – in all the best ways.” 

Membership+ subscribers can listen to the full interview with Kenny Solomons in the Sweden in Focus Extra podcast, which will be available from Wednesday, June 26th.   

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