Sweden looks into the abyss

 

There was a time when Sweden was looked upon by American liberals as an inspirational example of the Scandinavian welfare state. Although Europeans were less impressed, even the country’s immediate neighbors tended to, grudgingly, accept Sweden as a senior brother.

After staying out of World War II, Sweden had evolved into a high-performing export-oriented economy, based on a stable parliamentary democracy and social consensus. The country had top-notch health care and education. It enjoyed social and gender equality, had low crime rates and little ethnic conflict. While grounds remain for optimism about some of these indicators, especially in the industrial sector, most have been transformed beyond recognition.

Present-day Sweden carries the dubious distinction of having the highest rate of gangland killings in Europe. It boasts the lowest average age of serious offenders, with children in their low teens being arrested for murder. Increasing segments of suburbs are officially classified as “especially vulnerable areas,” where it is “hard, bordering on impossible” for the police to operate. In layman’s terms, these are no-go zones, where local clans rule and where first responders will not enter without flak jackets and police escort.

An early warning was provided in 2017 when United States President Donald Trump made a quip about rioting in Sweden: “You look at what’s happening last night in Sweden. Sweden, who would believe this!” Who indeed? At the time, such comments were met with disdain and ridicule. Today, it is not so funny anymore.

Sweden has transitioned from being a model of inspiration to becoming a warning example. As gangland violence is spreading across borders, its Scandinavian neighbors experience growing fears of ending up in what is known in Denmark as the “Swedish condition.”

Defying an old taboo, the Swedish government has called on the military to assist the police. It has even come to the point where the governor of the Bank of Sweden, Erik Thedeen, tells the Financial Times that the growing problem of shootings and bombings is so serious that it risks damaging the country’s long-term economic growth. Given the negative impact that a statement of this kind will have on markets, it is not to be taken lightly. Central bank governors weigh their words very carefully.