SWEDEN: Sweden's Prime Minister appealed to voters yesterday not to dismiss the euro in next week's referendum because of economic troubles in Germany and France, and said the vote could be won.
Fighting to turn the tide against polls that give a lead to the No camp - which includes some ministers, the political left and many women - Mr Goran Persson said the final week would be crucial and the race would be close.
Sweden is a member of the EU but, like Britain and Denmark, stayed out of the single currency area formed by 12 other members in 1999.
The spectacle of the two euro zone giants breaking budget deficit rules in the EU's core Stability and Growth Pact has been a major factor behind the Swedish lack of enthusiasm for adopting the single currency in September 14th's referendum.
Mr Persson said the fact that they were being upbraided by the executive European Commission and, in Germany's case trying to correct the deficit, should encourage Swedish voters.
"The No campaign is claiming all the time that the stability pact doesn't work. I have the opposite opinion. Just the fact that Germany is monitored . . . and that the commission sticks to the criteria tells you one thing: this is a stability pact for all member countries inside the monetary union; it's not only for the small ones."
He said Sweden might wait to enter the euro if the stability pact collapsed. He had "every reason to believe" a referendum mandate "could be used in such a way so we could enter monetary union on January 1st, 2006".
With two polls this week showing the lead the No side has maintained since April narrowing, Swedish financial markets showed a flicker of confidence in a Yes victory, with interest rates converging slightly towards euro zone levels.
Mr Persson has predicted sentiment would turn in the final days when the 20 per cent undecided make up their minds. - (Reuters)