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No change in Sweden.

The election resulted in the same balance between the non-socialist bloc and the socialist and green bloc in the Riksdag as after the 1998 election.

But within the blocs, the Social Democrats strengthened their position, and the Moderate party suffered severe losses to the Liberals.

The last four years have been years of stagnation in terms of reforms in Sweden. Not much has happened at all.

Now, the risk is that we will get four more years of stagnation.

The Social Democrats are the true conservatives of Sweden - resisting change, nostalgia for the past.

But the country needs reforms.

Fast membership of the Euro. A referendum might take place next year. But a decision on its timing might not come immediately.

And certainly lower taxes.

Their is no doubt that high taxes are reducing growth and reducing the competitiveness of Sweden.

But little of this is likely to happen in the short term. Business as usual risks becoming stagnation.

The work with the new constutution of Europe has now started in earnest.

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Previous comments:
- Euro Struggle
- Euro First
- Peace for Iraq
- War? Peace?
- Strong Euro
- Congratulations, Denmark!
- New NATO
- War in Iraq?
- Stagnation?
- Change?