History of Sweden (1967–1991)

The period between 1967 and 1991 in Swedish history is characterized by significant social, economic, and political transformations. This era saw the culmination of the "Swedish Model," a system built on a strong welfare state, centralized wage bargaining, and a commitment to social equality, but also the beginnings of its unraveling.

Politically, the Social Democratic Party (Socialdemokraterna) dominated Swedish politics throughout much of this period. They held power almost continuously, often in coalition with other parties, particularly the Centre Party (Centerpartiet). Key Prime Ministers during this time included Tage Erlander (until 1969), Olof Palme, and Ingvar Carlsson. Olof Palme's assassination in 1986 was a traumatic event that deeply affected Swedish society.

Economically, the period began with strong growth and a prosperous, highly industrialized economy. However, the oil crises of the 1970s presented significant challenges. These crises, coupled with increasing international competition and structural rigidities in the Swedish economy, led to slower growth, rising inflation, and increased unemployment. The Swedish government responded with various measures, including devaluation of the currency and attempts at wage and price controls, with mixed success. Debates intensified about the role of the state in the economy and the sustainability of the Swedish Model.

Socially, this era saw further expansion of the welfare state, including increased social security benefits, expanded healthcare, and investment in education. Immigration continued, diversifying Swedish society. There was also a growing emphasis on environmental protection and gender equality. However, challenges to the welfare state model arose, driven by economic strains and changing demographics.

Towards the end of this period, in the late 1980s and early 1990s, calls for deregulation and privatization grew louder. The collapse of the Soviet Union also influenced the political landscape, prompting a re-evaluation of Sweden's neutrality policy. The period concluded with Sweden facing significant economic challenges and actively debating its future direction, setting the stage for the economic crisis of the early 1990s and the subsequent shift towards a more market-oriented economy. This culminated in Sweden applying for membership in the European Union in 1991.