Sweden is a constitutional monarchy with an elected parliament under the leadership of the prime minister.
Main Political Issues
EU membership
In March 1994, Sweden agreed terms to join the EU. A referendum was held on November of that year in which 52% voted in favor of membership.
High cost of the welfare state
The cost of Sweden's welfare system has brought about an enormous budget deficit, equivalent to 15% of GDP in 1993. The government has to steer a difficult course between raising taxes and cutting benefits.
Profile
Swedish politics have traditionally been split between the monolithic Social Democrats (SDAP) and trade unions on the left, and a host of moderate center and right-wing parties. Since the 1930s, the Social Democrats have governed every term with the exception of 1976û1982 and 1991û1994. The marked shift to the right in Swedish politics seen in 1991 was reversed in the 1994 elections. These saw a swing back in favor of the Social Democrats, although the party failed to gain an absolute majority in parliament. Ingvar Carlsson, SDAP leader, elected to form a minority government.
