Whilst most European economies are crumbling under the debt crisis one country is bucking the trend, proving that austerity measures can simultaneously inspire growth and make a nation proud.
After years running an all inclusive welfare state, Sweden was by the early 90s, in deep crisis. The government pulled on the emergency brake and the social sector was reformed massively. Yet,"in comparison to many other countries, the Swedes have a great confidence in the state". Drastic austerity measures were coupled with good tax incentives and an open budget. "We have a very long tradition of making information available to the public; this principle has had a big impact."