Learning from Sweden: A Blueprint for Building Resilient European Capital Markets

Brussels, 19 June 2025 – A recent publication by the Centre for European Policy Studies (CEPS) explores how Sweden’s capital markets can serve as a model for other European nations aiming to enhance their financial frameworks. Sweden’s market is renowned for its depth, inclusiveness, and long-term focus, attributes significantly shaped by decades of deliberate reforms.

Key Elements of Sweden’s Capital Market

The report highlights various drivers that have contributed to the success of Sweden's capital markets. Among these, pension restructuring stands out as a crucial factor. The introduction of tax simplification and accessible savings opportunities has created a supportive environment for investment. Such changes have encouraged households to develop long-term saving habits, promoting retail participation in the market.

Starting in the late 1970s, a series of strategic measures, including tax-advantaged equity funds, pension-linked accounts, and digital investment platforms, have progressively made investing more accessible to the general public. As a result, these initiatives have established a culture of trust and openness towards financial innovation in Sweden.

The Financial Crisis and Regulatory Changes

The financial crisis of the 1990s proved to be an essential turning point. It accelerated Sweden’s transition toward a more resilient and transparent financial system. In response to the challenges posed by the crisis, regulatory bodies implemented significant reforms aimed at enhancing institutional stability. Today, Sweden’s capital market is characterized not only by its liquidity and depth but also by its alignment among various stakeholders, such as businesses, labor unions, and public authorities.

Implications for the European Union

As the European Union works toward advancing the Capital Markets Union, there is a strong emphasis on channeling more household savings into productive investments. The lessons derived from Sweden’s approach provide valuable insights into how coherent policy, institutional credibility, and inclusiveness can foster both economic and social resilience across the EU.

The CEPS report encourages EU policymakers to consider Sweden as a viable blueprint for developing robust capital markets that are responsive to both current and future challenges.

Conclusion

The findings of this research underline the significance of a well-structured capital market in promoting economic stability and resilience. As European economies strive to adapt to rapid changes, embracing the key principles demonstrated by Sweden could pave the way for more sustainable financial landscapes across the continent.

For more details, the full publication is available for download on the CEPS website.