information:extraction, information:classification, structural:scholar_edition, structural:expansion
Recent history

A bursting real estate bubble caused by inadequate controls on lending combined with an international recession and a policy switch from anti-unemployment policies to anti-inflationary policies resulted in a fiscal crisis in the early 1990s. Sweden's GDP declined by around 5%. In 1992, a run on the currency caused the central bank to briefly increase interest rates to 500%.

The response of the government was to cut spending and institute a multitude of reforms to improve Sweden's competitiveness, among them reducing the welfare state and privatising public services and goods. A referendum passed with 52.3% in favour of joining the EU on 13 November 1994. Sweden joined the European Union on 1 January 1995. In a 2003 referendum the Swedish electorate voted against joining the Euro currency. Sweden held the chair of the European Union from 1 July to 31 December 2009.

On 28 September 1994, the 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), being one of the worst maritime disasters of the 20th century.

Until 2022, Sweden generally remained non-aligned militarily, although it participated in some joint military exercises with the North Atlantic Treaty Organization (NATO) and some other countries, stationed its troops under NATO command in Afghanistan, took part in EU-sponsored peacekeeping operations in Kosovo, Bosnia and Herzegovina, and Cyprus, and helped enforce a UN-mandated no-fly zone over Libya during the Arab Spring. In addition, there was extensive cooperation with other European countries in the area of defence technology and defence industry; some Swedish-made weaponry was used by Coalition militaries in Iraq. In response to the 2022 Russian invasion of Ukraine, Sweden moved to formally join NATO, alongside Finland. After many months of delays caused by the objections of Turkey and Hungary, Sweden became a NATO member on 7 March 2024.

In recent decades Sweden has become a more culturally diverse nation due to significant immigration; in 2013, it was estimated that 15% of the population was foreign-born, and an additional 5% of the population were born to two immigrant parents. The influx of immigrants has brought new social challenges. Violent incidents have periodically occurred including the 2013 Stockholm riots. In response to these violent events, the anti-immigration opposition party, the Sweden Democrats, promoted their anti-immigration policies, while the left-wing opposition blamed growing inequality caused by the centre-right government's socioeconomic policies.

Sweden was heavily affected by the 2015 European migrant crisis, eventually forcing the government to tighten regulations of entry to the country. Some of the asylum restrictions were relaxed again later.

On 30 November 2021, Magdalena Andersson became Sweden's first female prime minister. The September 2022 general election ended in a narrow win to a bloc of right-wing parties. On 18 October 2022, Ulf Kristersson of the Moderate Party became the new Prime Minister.