🇸🇪 Sweden, welcome to NATO
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Good morning! Today is Wednesday, 12th July 2023. In today’s edition of the Riedia Sweden Summer Weekly newsletter, we're covering:
Drinking water and egg shortage in Sweden, tighter regulations for private schools, the reason behind the weakness of the Swedish crown against the euro, and a historic day in which Turkey has finally welcomed Sweden into NATO.
—Viviana Levet, Julia Powanda
P.S. Today, we rolled out new design for the newsletter! If you have any feedback, please reply to this email. Thanks!
TOP STORIES

Türkiye Welcomes Sweden into NATO: A Historic Day
In a significant development, Türkiye has officially extended its approval for Sweden's entry into NATO, as announced by NATO Chief Jens Stoltenberg. The momentous decision came during a meeting held on Monday, which brought together Sweden's Prime Minister Ulf Kristersson, Turkish leader Recep Tayyip Erdogan, and Jens Stoltenberg himself.
During a press conference following the meeting, Jens Stoltenberg expressed his enthusiasm, remarking, "This is a historic day." With this acceptance, Türkiye joins the majority of the 31 NATO member countries that have already given their consent for Sweden's membership. The only remaining country is Hungary, which has pledged to follow suit once Türkiye's approval is granted.
As the news unfolds, NATO's focus now shifts to the upcoming significant meeting set to commence on Tuesday, July 11th, in Vilnius, the capital of Lithuania. The gathering is expected to last two days and will delve into crucial matters, including discussions on the ongoing war in Ukraine and the alliance's strategies to defend member countries in the event of a conflict.
Sweden's inclusion in NATO holds tremendous significance, bolstering collective security efforts and reinforcing the alliance's commitment to regional defense. This decision reflects the growing cooperation and partnership between Sweden and NATO member states, further enhancing stability and collaboration in the region.
Rising Food Prices in Sweden: What's Behind It?
Source: Dagens Nyheter
Food prices in Sweden have been on the rise, and there are several factors contributing to this surge. Inflation, high energy costs, transportation expenses, and currency fluctuations are the main culprits. The weakening Swedish krona has particularly impacted the situation.
Sweden relies heavily on food imports, especially during the winter months when fruits, vegetables, and essential items like salt, ketchup, and household cheese come from abroad. The weakened krona has made these imports more expensive, pushing up overall food costs.
Other factors, such as imported fertilizers, animal feed, transportation, and packaging materials, have also become pricier due to the weak currency.
Fruits and vegetables, meat, fats, coffee, pasta, dairy products, and even chips have been affected by these dynamics, leading to higher prices for consumers.
The future outcome remains uncertain, as prices are adjusted a few times a year and retailers are cautious about significant increases. The stabilization of world market prices for input materials will play a crucial role in determining whether prices will continue to rise or level off.
As these challenges persist, consumers and businesses alike will closely monitor the food pricing landscape in Sweden.
Climate change affecting Swedish groundwater
Source: Dagens Nyheter
Southeast Skåne often faces water scarcity issues during the summer months. Drinking water in this region primarily comes from smaller waterworks that process groundwater. One such unassuming waterworks facility in the middle of Österlen plays a vital role in providing water to nearby communities, but it can face strain, particularly during the tourist-heavy Midsummer season.
In Sweden, drinking water is a combination of roughly half groundwater and half surface water. While surface water is visible, such as lakes, groundwater remains hidden underground. Groundwater levels in Skåne, especially in the eastern parts, are frequently reported to be low during summers. In over half of the municipalities, drinking water is sourced from Bolmen and Vombsjön instead.
The Swedish Geological Survey (SGU), monitoring groundwater levels since the 1960s, has been studying the impact of climate change on groundwater. While their results are still ongoing, there is a likelihood of climate change affecting groundwater availability.
Groundwater replenishment is a slow process, with precipitation seeping into the ground. In southern Sweden, groundwater is primarily formed during winter with minimal formation during summer. The opposite occurs in the northern parts, where precipitation accumulates as snow until spring melting initiates groundwater formation.
Calle Hjerne, a groundwater specialist at SGU, highlights that low groundwater levels have become more common in southern Sweden due to reduced snowfall and longer periods of warm weather. These factors result in decreased groundwater replenishment before the summer season.
Understanding the intricacies of groundwater levels is crucial for ensuring sustainable water management. Balancing water needs and preserving resources will be vital in maintaining a reliable water supply in the face of changing climate conditions.
Stricter rules for private school companies
Source: Dagens Nyheter
Instances of financial irregularities and mismanagement in private schools have raised concerns and prompted criticism. Some school owners have faced questioning, permit revocations, and even court convictions for financial crimes. Examples include large profit distributions to owners, misuse of school funds for unrelated activities, and even bankruptcy of private school companies.
In response to these issues, the Minister of Education has unveiled new directives aimed at tightening regulations for private school companies. While a previous investigation to ban profit withdrawals was put on hold, the recently announced directives signify a fresh inquiry.
Under the new directives, there will not be a general ban on profit withdrawals. Instead, the focus is on restricting profit distribution during the initial years after establishing or changing ownership of a private school. Stricter ownership assessments and financial requirements are also being proposed, with potential penalties for owners who commit crimes or misuse school funds.
Additionally, regulations for large school corporations are set to be tightened. The Tidö parties, involved in the agreement, emphasize the need for individual school units to have their own principals. This move aims to enhance transparency and prevent school funds from being transferred within corporate entities. The aim is to uphold high standards of education and protect the interests of students and the broader community.
What else is happening in Sweden?
🌾 Swedish farmers are expected to face an economic blow as this year's grain harvest is estimated to be 20% smaller than usual, due to a drought during May and June. The forecasted harvest of 4.6 million tons will leave little for export, impacting competitiveness in the international market. Rising costs, including increased fertilizer and fuel prices, along with higher interest rates, are further adding to the challenges faced by farmers in Sweden.
👮 Municipalities in Sweden have been fined millions of kronor and accused of risking the country's security due to deficiencies in their work on security protection. The County Administrative Board in Norrbotten imposed sanctions on the municipalities of Pajala, Sorsele, and Strömsund, with fines ranging from 1.5 to 2 million kronor. The exact nature of the violations is confidential, but failure to comply with security protection laws can result in various penalties, including failure to report security-sensitive activities and failure to classify security protection information.
🚦 The Traffic Administration in Stockholm has proposed reducing lines and frequency in public transportation due to decreased usage and plummeting revenues during the pandemic. Täby municipality is critical of this and wants the Roslagsbanan train to run until 03:15 in the morning, citing safety concerns and greater convenience for passengers. The municipality opposes the changes proposed by the Swedish Transport Administration and hopes that the current frequency will be maintained.
🥚 Sweden is experiencing an ongoing egg shortage , which has been primarily caused by a salmonella outbreak at CA Cedergren, the country's largest egg producer. The outbreak led to the halt of all deliveries in mid-April and the culling of over 320,000 chickens as a precautionary measure, with no known timeline for when egg deliveries will resume. CA Cedergren remains determined to re-enter the market, with owner Maud Cedergren expressing their commitment to fighting the challenges faced.
ECONOMY
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Weakened Crown :The Swedish crown has weakened against the euro due to various factors such as skepticism towards Sweden's high debt levels, particularly in the real estate sector, and the perception of the crown as a weak currency internationally. The Riksbank is concerned about the weak crown as it complicates the fight against inflation, but raising interest rates substantially is not a likely solution. The weak crown means a longer inflation reduction for households and a reduced holiday budget for trips to Southern Europe.
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Systembolaget Lost : Systembolaget, the Swedish alcohol monopoly, has lost a wine dispute against Winefinder in the Supreme Court. The case revolved around distance sales of alcohol, with Winefinder arguing that it operates from Denmark and should be allowed to sell alcohol to Sweden. The ruling is seen as a victory for e-commerce and clarifies the legal situation for distance trade in Europe.
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Racism in Business : According to the Allbright report, only 0.5% of high positions in Swedish businesses are held by women of color, highlighting the lack of representation and value placed on the competence of black women in leadership roles. The report reveals that 95% of leaders and 98% of board members are coded as white, suggesting a focus on sexism while neglecting racism in business environments. The findings indicate a prioritization of maintaining white spaces rather than promoting diversity and gender equality.
Tech
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Koenigsegg Expansion : Koenigsegg has opened a new car factory in Sweden, the first in the country in 50 years, which will increase production by over 50 percent and allow them to build one car per day instead of one per week. The expansion is driven by the success of their Gemera model and has led to the doubling of their workforce from 300 to 600 employees, with plans to hire an additional 150 people in the next two years.
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Strained waterworks in Skåne : The waterworks' capacity in Skåne, Sweden, including the Ringsjöverket plant, may reach its limit during peak usage times, prompting warnings to save water. The facility supplies water to several municipalities, but increased water usage in the summer can strain the system. While there is no immediate risk of water shortage due to the large lake that supplies the facility, saving water is encouraged to avoid strain on the infrastructure and potential increased fees.
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Avicii Arena Outage : The gondola at the Globe in Stockholm's Avicii Arena stopped due to a power outage, trapping eleven people at the top. No injuries were reported. Another gondola was sent to rescue the passengers, who were then safely transported to the other carriage using safety harnesses. The power failure was a result of a larger outage that affected 12,000 households in Stockholm.
The world through Swedish lens
🌍 June 2023 was the warmest month on record globally, with temperatures more than 0.5 degrees above average. Heatwaves affected various regions, including Europe, Asia, Australia, and America, while western Australia, western USA, and western Russia experienced cooler temperatures. The warming trend also extended to the surface waters in the oceans, with the Northeast Atlantic and other areas recording temperatures significantly above average. "When average temperatures change this quickly, we have to acknowledge that even scientists are surprised. No one doubted that the oceans would get warmer, but the speed at which it happened in a single year and over such large areas affecting the global average is remarkable," says Michael Tjernström, a professor of meteorology at Stockholm University.
🇫🇷 French President Emmanuel Macron is proposing fines for parents as a way to prevent future riots following recent violent disturbances in France. Macron attributed the unrest to an authority problem within society that begins in the family, and wants to introduce a new form of fine punishment for parents of offenders. The riots, which began as a response to perceived racism in Nanterre, have resulted in significant material damage and numerous injuries, prompting concerns about how to avoid similar incidents in the future. A wave of cancellations has hit hotels in Paris in the past week. Several foreign ministries, including the Swedish Ministry of Foreign Affairs, have urged their citizens to be cautious and avoid large crowds.
🇯🇵 Japanese Covid-19 infections have increased for 13 consecutive weeks, with Okinawa being heavily affected and putting pressure on the healthcare system. Tokyo's hospitals may face a similar situation if the virus spreads among the elderly, warns Kaku Mitsuo, the director of Tokyo's Infectious Disease Control Center. Mitsuo emphasizes the importance of wearing face masks and maintaining hand hygiene, urging the population to be diligent. The authorities are also planning to provide an additional vaccine dose against the omicron variant from September onwards. Nonetheless, the Swedish government has made no statement regarding travel restrictions or warnings about traveling to Japan to Swedish citizens.
🏴 The Scottish government is proposing a measure to decriminalize drug possession and provide "treatment and support" for individuals, aiming to address the high number of drug-related deaths in Scotland. In 2020, drug-related deaths in Scotland were 3.7 times higher than the UK average, surpassing all other European countries. While the Scottish government is ready to collaborate with the British government on this policy change, it has received a cold response from London, with no plans to alter the tough stance on drugs, according to Prime Minister Rishi Sunak's spokesperson. In the meantime, Sweden is tightening its drug policy with a new drug law coming into force since July 1st, which states that selling narcotics will carry a minimum sentence of six months in prison.
Events
⚽️ These are the best movies currently in theaters, including the emotional football film "Forever" which revolves around a determined group of girls. Another film, "Insidious. The red door" is described as a strangely pale and heavy horror experience. However, the new Pixar film "Elementary" fails to impress as it is labeled a talkative and soulless family film. Enjoy your summer with these great reviews.
🌍 The Overshoot Festival will be hosted on July 27th in Folkets Park in Malmö . The day represents the date at which we use up the earth's resources. You can learn more about the event here .
🎥 The Stockholm Film Festival is organizing the "Summer Cinema Take Over" at Strandhäxan on Djurgården. From August 16th-20th festival-goers can enjoy films under the open sky by the water next to the Djurgård Bridge. The films have not been selected yet, but you can follow @sthlmfilmfest and @strandhaxan to help choose the summer's films.
Discover Sweden
Sweden is preparing for the next crisis with the largest rearmament since World War II
Source: Dagens Nyheter | edited by Viviana Levet/Riedia
Sweden is actively rearming both its civil and military sectors, focusing on supply preparedness to strengthen civil defense. This crucial aspect ensures access to vital goods like food and medicine. While Sweden had significant stockpiles during the World Wars, supply preparedness and civil defense were gradually dismantled since the 1990s.
In 2015, efforts began to rebuild supply preparedness, analyzing the country's needs. With fewer state-owned companies, the private sector now plays a larger role. The COVID-19 pandemic highlighted vulnerabilities and the need for flexibility, leading to the launch of the "Flexible Preparedness" initiative. This collaboration between companies, Region Stockholm, and Rise aims to enhance preparedness for critical supplies.
During the pandemic, collaborations between companies like Scania and Camfil helped acquire and produce necessary protective equipment. Saab, a Swedish company, actively participated in the initiative, exploring technologies like 3D printing for cost-effective production.
National coordination is crucial for effective supply preparedness. The Swedish Civil Contingencies Agency (MSB) acknowledges the state's reliance on the business community for critical production and is working on establishing oversight. An investigation is underway to determine how a national function for supply preparedness should be financed and organized.
FOI, the Swedish Defence Research Agency, conducted a report emphasizing the promise of flexible preparedness. They stressed the need for national collaboration, streamlined communication frameworks, improved procurement rules, and enhanced inventory capacity.
As Sweden advances its supply preparedness, collaborative efforts between the public and private sectors will play a vital role in ensuring a robust response to crises and maintaining critical production capabilities.
Sweden news morning digest
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