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=== Post-war Sweden === {{main|History of Sweden (1945–1967)|History of Sweden (1967–1991)|History of Sweden (1991–present)}} Sweden was one of the first non-participants of [[World War II]] to join the [[United Nations]] (in 1946).<ref>{{cite web| url = https://www.researchgate.net/publication/290481487| title = Götz, "From Neutrality to Membership" .| access-date = 26 April 2018| archive-date = 27 April 2018| archive-url = https://web.archive.org/web/20180427044827/https://www.researchgate.net/publication/290481487| url-status = live}}</ref> Apart from this, the country's leaders tried to stay out of alliances and remained officially neutral during the entire [[Cold War]], not joining [[NATO]] until 2024. The social democratic party held government for 44 years (1932–1976). They spent much of the 1950s and 1960s building ''[[Folkhemmet]]'' (''The People's Home''), the Swedish [[welfare state]].<ref>{{cite web| url = https://www.academia.edu/8718837| title = Götz, "The Modern Home Sweet Home."| last1 = Götz| first1 = Prof Dr Norbert| access-date = 26 April 2018| archive-date = 17 February 2022| archive-url = https://web.archive.org/web/20220217102128/https://www.academia.edu/8718837| url-status = live}}</ref> Sweden's industry had not been damaged by the war and it was in a position to help re-build Northern Europe in the decades following 1945. This led to an economic upswing in the post-war era that made the welfare system feasible.<ref>Albert Harold Rosenthal, ''The social programs of Sweden: a search for security in a free society'' (1967) ch. 7–8</ref> However, by the 1970s, the economies of the rest of Western Europe were prosperous and growing rapidly, while the Swedish economy stagnated. Many economists blamed its large tax funded [[public sector]].<ref>{{cite book|author1=Dezsö Horváth|author2=Donald James Daly|author3=Institute for Research on Public Policy|title=Small Countries in the World Economy: The Case of Sweden : what Canada Can Learn from the Swedish Experience|url=https://books.google.com/books?id=U7uRY3FvdC4C&pg=PA32|year=1989|publisher=IRPP|isbn=978-0-88645-063-2|pages=30–35|access-date=13 December 2015|archive-date=23 April 2023|archive-url=https://web.archive.org/web/20230423120141/https://books.google.com/books?id=U7uRY3FvdC4C&pg=PA32|url-status=live}}</ref> In 1976, the social democrats lost their majority. The 1976 parliamentary elections brought a liberal/right-wing coalition to power. Over the next six years, four governments ruled and fell, composed by all or some of the parties that had won in 1976. The fourth liberal government in these years came under fire by Social Democrats and trade unions and the Moderate Party, culminating in the Social Democrats regaining power in 1982. During the Cold War Sweden maintained a dual approach; publicly the strict [[Neutral country|neutrality]] policy was forcefully maintained, but unofficially strong ties were kept with the U.S., Norway, Denmark, West Germany, and other NATO countries. Swedes hoped that the U.S. would use conventional and nuclear weapons in case of a Soviet attack on Sweden. A strong ability to defend against an amphibious invasion was maintained, complete with Swedish-built warplanes, but there was no long-range bombing capability.<ref>Askelin, Jan-Ivar, [http://www.foi.se/FOI/templates/Page____3726.aspx "Lifeless lifeline to the west"] {{Webarchive|url=https://web.archive.org/web/20110607145055/http://www.foi.se/FOI/templates/Page____3726.aspx |date=7 June 2011 }}, ''Framsyn Magazine'', [[Swedish Defence Research Agency]], 2004, Issue 1, Retrieved 24 February 2010</ref> In the early 1960s, U.S. [[nuclear submarine]]s armed with mid-range [[UGM-27 Polaris|Polaris]] A-1 nuclear missiles were deployed not far from the Swedish west coast. Range and safety considerations made this a good area from which to launch a retaliatory nuclear strike on Moscow. The U.S. secretly provided Sweden with a military security guarantee, promising to provide military force in aid of Sweden in case of Soviet aggression. As part of the military cooperation, the U.S. provided much help in the development of the [[Saab 37 Viggen]], as a strong Swedish air force was seen as necessary to keep Soviet anti-submarine aircraft from operating in the missile launch area. In return, Swedish scientists at the [[Royal Institute of Technology]] made considerable contributions to enhancing the targeting performance of the [[UGM-27 Polaris|Polaris]] missiles.<ref>Bruzelius, Nils, [http://www.foi.se/FOI/templates/Page____4065.aspx "Secret nuclear submarines guaranteed Swedish security"] {{Webarchive|url=https://web.archive.org/web/20110607145108/http://www.foi.se/FOI/templates/Page____4065.aspx |date=7 June 2011 }}, ''Framsyn Magazine'', Swedish Defence Research Agency, 2005, Issue 1, Retrieved 24 February 2010</ref> On 28 February 1986, the Social Democratic leader Prime Minister [[Olof Palme]] was [[Assassination of Olof Palme|assassinated]]. The murderer was never found. Shocked Swedes worried whether the nation had lost its innocence.<ref>Jan Bondeson, ''Blood on the Snow: The Killing of Olof Palme'' (2005)</ref> On 28 September 1994, the [[Sinking of the MS Estonia|MS Estonia sank]] as the ship was crossing the Baltic Sea, en route from Tallinn, Estonia, to Stockholm, Sweden. The disaster claimed the lives of 852 people (501 of them were Swedes<ref>{{cite web |title=Sweden pays tribute |url=https://www.thelocal.se/20140928/sweden-pays-tribute-to-estonia-disaster-victims |website=www.thelocal.se}}</ref>), being one of the worst maritime disasters of the 20th century.<ref>{{cite news |last1=Henley |first1=Jon |last2=correspondent |first2=Jon Henley Europe |title=Estonia ferry disaster inquiry backs finding bow door was to blame |url=https://www.theguardian.com/world/2023/jan/23/estonia-ferry-disaster-inquiry-backs-finding-bow-door-was-to-blame |work=The Guardian |date=23 January 2023}}</ref> In 1995, a few years after the end of the Cold War, Sweden became a member of the [[European Union]] and the old term "policy of neutrality" fell out of use.<ref>{{cite book|editor1=Erich Reiter|editor2=Heinz Gärtner|title=Small States and Alliances|url=https://books.google.com/books?id=NjN6fJSLbggC&pg=PA103|year=2001|publisher=Springer Science & Business Media|isbn=978-3-7908-1403-3|page=103|access-date=13 December 2015|archive-date=23 April 2023|archive-url=https://web.archive.org/web/20230423120141/https://books.google.com/books?id=NjN6fJSLbggC&pg=PA103|url-status=live}}</ref><ref>Christine Agius, ''The Social Construction of Swedish Neutrality: Challenges to Swedish Identity and Sovereignty'' (2006) p. 207</ref> In a [[Referendums in Sweden|referendum]] held in [[2003 Swedish euro referendum|2003]], the majority voted not to adopt the [[Euro]] as the country's official currency. Foreign Minister [[Anna Lindh]] was murdered just before the referendum.<ref>{{cite news |title=Sweden says No to euro |url=http://news.bbc.co.uk/2/hi/europe/3108292.stm |date=15 September 2003 |access-date=2 February 2022 |archive-date=17 December 2020 |archive-url=https://web.archive.org/web/20201217161101/http://news.bbc.co.uk/2/hi/europe/3108292.stm |url-status=live }}</ref> During the 1980s, Sweden attempted to preserve its model of capitalism plus a generous welfare state through what it called a "bridging policy." Unintended consequences became apparent in the 1990s. There was an economic crisis with high unemployment and several banks and companies going bankrupt. There was high inflation as well as overheated real estate and financial markets and a negative real rate of interest. After 1991, these factors caused a recession with high unemployment. There were political reverberations and businesses called for [[Neoliberalism|neoliberal]] government policies.{{Page needed|date=November 2022}} By 2000, however, the positive trends dominated. Compared to the rest of Europe, unemployment in Sweden was low, while economic growth has been high, inflation low, the budget in balance, and the balance of payments positive.<ref>Lars Magnusson, "Do the Nordic Lights Shine Bright Again?–Sweden's Response to the 1970s and 1980s Crisis." ''Journal of Modern European History'' 9.2 (2011): 195–214.</ref><ref>Sofia Murhem, "Security and change: The Swedish model and employment protection 1995–2010." ''Economic and Industrial Democracy'' 34.4 (2013): 621–636.</ref>
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