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What will Brexit mean for Sweden?

Even though the UK has now activated Article 50, we are still in a period of uncertainty as negotiations continue to see what the terms of the Brexit will be. Britain is the fourth-largest export market in Sweden, and while we are hoping that the EU and Britain will come to a favourable trade deal, we still don't know for sure what that will be.

Many experts have come out and said that the British Exit will lead to poor consequences for the UK, the EU, and Sweden, but just what will be affected and how? That’s what we’re going to take a look at in this article.

The impact on Sweden’s position in the EU

Britain is a tight ally of Sweden in the EU, especially when it comes to powerful issues such as free trade and the right for a member nation to decide on certain things for themselves. With Britain out of the EU, they will not be allowed to vote on such matters. This will most likely harm Sweden. Lively debates are expected to happen, and Sweden will need to protect its interests during this time.

The impact on trade

No country has ever opted to leave the EU before, so it is impossible to guess what kind of impact Brexit will have on Sweden’s trade. The Stockholms Handelskammare reported on the importance of Stockholm, in particular, becoming more internationalised, and it is clear that it is now in Sweden’s best interests to cut off trade routes with one of their top exporters.

There are over 1,000 Swedish subsidiaries in the United Kingdom as well. There is a strong demand for Swedish services and products in the UK, and both sides are calling out for a favourable trade deal. However, the EU is not keen on showing the UK any kindness in an attempt to prevent any other member states from leaving. So while it may be in most countries’ best interests to come to a favourable agreement with the UK, there’s no guarantee that this is what will happen.

The impact on investment

British companies have invested over £300 billion in Sweden, which accounts for over 13% of the foreign investment in the country. If the UK is unable to negotiate good trade results with the EU, it will have to start looking to other countries to help them sell their goods, in addition to increasing their international trade. This could bode well in Sweden’s interests.

The biggest impact on investment will be on the British side. The UK is currently the biggest recipient of EU foreign investment, and with the financial capital being London, this could all change. While Sweden may profit from the Brexit where investment is concerned, Britain will more than likely lose out massively.

At the moment, a lot of what we are talking about is hearsay and predictions, and it won’t be until a proper Brexit plan is finalised that we know for sure what the impact on Sweden will be.

29 Aug 2017 11:31

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About Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a major in marketing. He is the CEO of ESBO ltd brand mentioning agency. He writes for several online sites such as Tech.co, Semrush.com, Tweakyourbiz.com, Socialnomics.net. Boris is the founder of MonetaryLibrary.com and cryptoext.com.




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