Carl Bildt - Prime Minister

Prime Minister

His government policies focused on liberalizing and reforming the Swedish economy as well as making Sweden a member of the European Union. It initiated the negotiations for Sweden's accession to the European Union (though the work to prepare the ground, at home and versus the EEC/EU, had already started during the final year of the Social Democratic government. The Social Democrats' volte face on possible accession to the EEC was most likely a prerequisite for the positive referendum result) and Bildt signed the accession treaty at the European Union summit of Corfu, Greece, on 23 June 1994.

Economic reforms were enacted, including voucher schools, liberalized markets for telecommunications and energy as well as the privatization of publicly owned companies, privatization of health care, contributing to liberalizing the Swedish economy. Arguably, the subsequent budget cut-backs agreement with the Social Democrats, and after 1994, continued spending cuts by the Social Democratic government, did more to reform the Swedish economy and the Swedish model, than Bildt's governments programme as such. The government's effectiveness was furthermore hampered as it was plagued by in-fighting, most memorably over the construction of the Oresund Bridge.

The period was also marked by a severe economic crisis. In November 1992, the crisis reached its climax as Sweden left the European Exchange Rate Mechanism (the "ERM") and let the Krona float, after having defended the fixed exchange rate at tremendous cost. In some people's opinion, single-minded defense of the Krona led to and continues to draw heavy criticism. At the peak of the crisis and amid run-away budget deficits, a number of emergency cut-backs were negotiated with the Social Democrats. The different measures did contribute to a reduction in the public deficit in 1994 and 1995, and allegedly to revived growth in subsequent years. There is still some debate on whether the current (2006) growth levels are in part due to the devaluation of the Krona. Some see the increased importance of the export industry as testament to this.

The Social Democrats returned to power in September 1994, although Bildt's Moderate Party scored a slight gain.

In 1999 he was succeeded as party leader by Bo Lundgren.