In 1995, Sweden officially joined the European Union (EU), marking a significant shift in its international and economic policy. This decision followed a national referendum in 1994, where a majority of Swedes voted in favor of joining the EU. For decades, Sweden had maintained a position of neutrality, especially during the Cold War, but the end of the Cold War and the desire for closer economic and political ties with Europe led to this change.
Sweden's accession to the EU symbolized its commitment to deeper European integration and marked a turning point in its history, aligning itself with other European nations on trade, governance, and foreign policy. However, Sweden maintained its currency, the Swedish krona, choosing not to adopt the euro, which reflected the cautious approach many Swedes held toward full integration into the EU.