AXEL SEIDEMANN/AP THE WRAPS COME OFF: The new currency is launched in a flurry of stunts and speeches

New Friends For the Euro

Brits lead the sceptics, but in Sweden feeling may be on the turn

By CHARLES P. WALLACE/Berlin

Posted Sunday, Dec. 8, 2002; 2.02 p.m. GMT
With the smooth transition to euro notes and coins in 2002 and the recent strength of the euro against the dollar, the three holdouts — Britain, Denmark and Sweden — will be considering anew whether or not to join the common currency. There's still a powerful "no" camp in Britain — in a September survey, 56% of voters said they opposed the euro.

And no wonder: British growth is stronger than the euro zone's, and unemployment in Britain is about half what it is on the Continent. The government has until June to decide whether five economic "tests" have been met — such as whether joining would boost employment and allow sufficient flexibility to cope with economic change. But no one expects a referendum in 2003. The Danes already rejected the euro in a referendum in 2000, and probably will vote again in 2004. But the Swedes will hold a vote in September 2003.

Swedish Prime Minister Göran Persson favors holding the referendum in the fall. Persson believes the euro switch would be good for exports — which means more profits for Sweden's large multinationals like Ericsson and Electrolux — and would lower consumer prices and interest rates. Opponents, including many Social Democrats, left-wing parties and some labor unions, are concerned that transferring monetary policy to Frankfurt bankers might threaten Sweden's legendary welfare benefits.

While opinion polls are still close, the arguments in favor seem to have finally persuaded voters: if the referendum passes, Sweden will adopt euro notes and coins in 2006.

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The Color of Money [Sep. 10, 2001] As the European Central Bank distributes new euros, businesses and consumers are bracing themselves

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