SWEDEN CONSIDERS SWITCH TO THE EURO IN 2002.

Urban Backstroem, Governor of the Sweden's Central Bank, the Riksbank, suggested on January 22 that Sweden may switch to the Euro in 2002, a date he described as being "the most realistic" in view of the technical preparations required. The Riksbank Governor's declaration followed an announcement by the Social Democratic Prime Minister that an extraordinary congress on participation in EMU is to be held at the beginning of next year. Sweden's Finance Minister also believes that a decision should be taken before Stockholm assumes the European Union's rotating Presidency (over the first half of 2001). The Central Bank Governor concluded that pending a political decision, the Riksbank must ensure the pursuit of stable economic policies based on steady growth and low inflation, whilst keeping a weather eye on the issue of Euro accession.

The same day, the deputy Governor of the Riksbank, Lars...