By Jonas Ljungberg (eds.)
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Note also that changeover costs are recalculated as annual payments on the lower estimate, 27 billion kronor, of the bill for adopting the euro. The redistributive impact of the changeover cost is underrated since it will be laid on firms, consumers and taxpayers at once. 6 ? 15 ? 65 Billion SEK per cent of GDP ?! 87 Jonas Ljungberg 25 impact of the euro through foreign trade is probably overrated and also hides redistributive effects. 1 thus can scarcely be said to idealize the benefits of the krona.
Göran Persson in speeches and debates 1997, according to Sydsvenska Dagbladet, 6 July 2003. Ådahl and Eklund, Allt om EMU, p. 82. Reuters, 30 June 2003. Towards the end of the electoral campaign the exchange rate came into focus through a remarkable twist: Prime Minister Persson said the adoption of the euro might be delayed even with a ‘Yes’, if when negotiating the exchange rate Sweden would be given an ‘impudent offer’, according to Aftonbladet, 30 August 2003. 2 Borders Matter: Why the Euro is a Mistake and Why it will Fail Arjo Klamer Once the euro is a fact, the discussion subsides.
A central bank needs the support of national political bodies and there is no guarantee that it will have that support. When nations want to conduct their own policies to counter negative economic shocks, they may end up having a conflict not only with the European Central Bank and the European Commission but also with each other. Imagine if Germany decided to withdraw from the euro and return to the mark. The Dutch would have to follow. No protagonist wants to consider the possibility of this happening.