Both countries import relatively more from the Euro area than they export.
Almost half of the countries' import value comes from Euro countries. Fluctuations in exchange rates will mean a lot to the overall industry profitability.
The Danish companies have an advantage thanks to its fixed exchange rate policy in relation to their Swedish counterparts, at least in times when currency weakening against the Euro occur. Norway's imports from Euro countries are considerably less important than for the other Nordic countries. Small currencies are hit hard in an international crises when capital are reluctant to bigger and safer currencies.
Large price movements and currency weakening are hitting small sized businesses. This in turn affects the long-term growth, structural change and productivity negatively. In all three Nordic countries that have not adopted the Euro, the uncertainty in the currency market has increased markedly. As a result, the perception of the Euro has become much more positive.
The downside of a small economy with a freely floating currency has become evident during the recent turmoil in financial markets. During this period, the currency has varied at the most 10-12 times stronger than normal. Such volatility is affecting especially smaller import companies. Even the most intelligent and thoughtful international business is likely to be a disaster for small businesses due to factors entirely beyond their own control.
This is also the simple reason that Swedish companies would want to introduce the Euro as quickly as possible.
Today, a large majority of Finns say that the Euro has been a great help to the country's economic development.
Facts: - 32.8 percent of the Nordic retailers say that they traded in Euro currency over the past year
- 30.6 percent of Sweden's small sized businesses have been trading in the Euro over the past six months
- 21.3 percent of Swedish small sized businesses say that recent currency fluctuations have affected them negatively
Cecilia Helland