After 1943

From 1943 onwards, Germany began to meet with a greater amount of misfortune after its losses at Stalingrad and elsewhere. Germany was forced into a more defensive position, while Allied forces met with greater success on the battlefield, such as in North Africa. Such a position allowed Sweden to be more decisive in its own policies and actions. Prior to 1943, Sweden's policy of neutrality was largely under the influence of German politics and the course of events that involved Germany, and it has been said that of the neutral nations in Europe during the war, only Switzerland and Portugal were completely neutral at that time. Following August and September 1943, Sweden was able to resist German demands and soften its stance to Allied pressure. However, despite Germany's defensive posture, Sweden was in constant fear that "the whole course of events suggested that the unexpected might happen," an attitude that was sustained until the very end of the war. With Germany's weakening position came stronger demands from the Allies. The Allies pushed for Sweden to abandon its trade with Germany, and to stop all German troop transit over Swedish soil. Sweden initially turned down such requests, but over time gradually gave in to the demands.

In 1943 Sweden received many Jewish immigrants from Denmark. With the dissolution of the Danish government in the summer of 1943, the German authorities had decided to deport the Danish Jewish population to concentration camps. However, the Danes successfully transported the vast majority to Sweden in a vast rescue effort. There, they were granted asylum. Many stayed in Sweden after the war.

After World War II

When the war was over Sweden was in a very favourable situation. Industry was intact and ready to start manufacturing products that the devastated Europe desperately needed. This caused an economic boom in Sweden; a boom that made the rapid development of the Swedish welfare-state during the fifties and sixties possible.

The dominating force in Swedish politics during this time was the Social Democratic party. The Social Democrats wanted to increase the size of the public sector. In the fifties, they formed a coalition with the Agrarian party. The social democratic policy towards to a welfare system mainly financed by taxes, led to a steady increase in taxation. This policy was strongly opposed by the Conservatives. The most infected political controversy during the late fifties was the fight over the national supplementary pensions scheme. This fight was won by the Social Democrats and the Confederation of Trade Unions who were in favour of the new pension system. The victory in the pension fight enabled the Social Democrats to continue their expansionist politics regarding the public sector. The social reform policy continued.

In the beginning of the 70s the growth in the Swedish economy was gradually reduced. The situation worsened because of the worsening economic situation in Europe and the United States. The demand for Swedish products on the international market diminished. The steel and shipping industries are examples of branches that received massive economic help from the Swedish State. In 1974 the Social Democratic Government began to borrow money to sustain private and public consumption. This policy was continued by the Conservative/Liberal Government that came to power in 1976. In the beginning of the 80s, Sweden borrowed more money and imported more than the country earned and exported. This was the beginning of the financial problems that Sweden suffers from even today.

The neutrality policy

During World War I and II, Sweden managed to keep its neutrality. This was a combination of political will and pure luck. After World War II, in light of the Cold War, the question whether Sweden should remain neutral or join NATO was raised. Before that, in 1948-1949, there had been some discussions about creating a Nordic defence alliance. This failed when Norway and Denmark joined NATO. A Swedish membership in NATO was particularly advocated by some liberals.

Among the political parties in Sweden a consensus regarding whether the country should remain neutral if war broke out, soon developed. The doctrine was a de facto doctrine, not a de jure. This meant that Sweden was free to form its neutrality policy after its own choice. This in comparison with, for example, Austria which has neutrality written into its constitution. The purpose of the doctrine was to keep Sweden out of any alliance in peacetime, thus enabling neutrality in a war situation.
 
Compulsory military service

In Sweden, since 1901, every man between the ages of 18 and 47 is ,by law, compelled to do compulsory military service. At the age of 18 you are called to a conscription where it is decided if you are fit for military service. Then it is decided which branch you are going to join: the army, the airforce or the navy. At the age of 20 you are drafted and the basic training lasts between 7.5 and 15 months, depending upon your suitability. After the basic training you are regularly called to military refresher courses.

Sources http://en.wikipedia.org/wiki/History_of_Sweden and http://www.sverigeturism.se/smorgasbord/smorgasbord/society/history/20th.html