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personality of his mentor and predecessor, Tage Erlander. In the 1970 elections the Social Democrats' share of the vote dropped by almost 5%. High taxes and inflation have plagued the Palme government, but thus far it has avoided a crisis by accepting the support of the Communist Party, in order to muster a majority over the bourgeois opposition.

Like its neighbors, with whom, in the Nordic Council, it has totally integrated its social policy. Sweden is committed to creating a social democracy in order to redistribute the national wealth and achieve social and economic security for all its citizens. An all pervasive welfare system has virtually eliminated individual privation. Uniquely, this welfare state has coexisted with an economy that is still 90% in private hands. The lack of serious social and economic grievances, coupled with the high order of political sophistication evidenced by the average citizen, makes Sweden a poor target for subversive activity. Non-Communist political leaders, the great majority of trade union leaders, and the press have cooperated to make the public aware of past Communist aims and tactics.

Ideologically aligned with the democratic West, Swedish political leaders are nevertheless strongly committed to pursuing a policy of non-alliance and neutrality. Sweden does not interpret this policy as precluding cooperation with other European countries through membership in a number of regional organizations, but it declines to join the North Atlantic Treaty Organization (NATO) and wishes to avoid full membership in the European Communities (EC) for the time being. Government leaders are wary of EC membership, fearing that it would compromise Sweden's neutrality and would destroy its chances of avoiding involvement in any eventual major European conflict. Swedish defense policy has been based on the maintenance of armed forces of sufficient strength to deter aggression or to hold off an invasion attempt long enough for Western military forces to provide aid. Thus, despite a jealously guarded freedom of action and occasionally vehement criticism of US actions in Southeast Asia, successive Swedish governments have predicated national survival ultimately on NATO, specifically US power. Although many Swedes believe that the Soviet Union no longer poses a threat to Western Europe, the nation as a whole tends to be wary of the traditional enemy that wrested Finland from the Swedish crown in 1809. Common ties of history and culture which bind many Swedes that Finnish independence is of paramount importance to Sweden's own security.

B. Structure and functioning of the government (U/OU)

Sweden is a constitutional monarchy with a democratic, responsible, parliamentary system of centralized government, based on universal suffrage. Although the focus of power is in the unicameral legislative branch, the executive, i.e., the Council of State acting in the King's name, retains more authority than is usual in such systems. The judiciary is free and independent, but its authority is less important than that of the other branches, primarily because it lacks the right of judicial review of legislation.

As elsewhere in Northern Europe, civil service personnel are generally competent, responsible, honest, and highly respected. Depending on their rank, they are counted among the middle and upper social groups; most of these in the higher echelons possess an academic degree. Initial appointment to career positions is based largely on performance in competitive written examinations. Public servants are personally liable for their official actions, and corruption is rare.

1. Constitutional system

The Swedish political system rests on four fundamental laws. The Instrument of Government or Constitution of 1809 - the oldest document of its type still in force in Europe - defines the various national governmental bodies and their powers and duties. The second fundamental law, the Act of Succession of 1810, secured the throne for one of Napoleon's marshals, Jean-Baptiste Bernadotte, and his male heirs. The Riksdag Act of 1866 transformed the centuries-old representative assembly with its four separate estates of nobles, clergy, burghers, and peasants into a bicameral parliament. Most provisions of the act still govern procedure within the present parliament. The fourth fundamental law, the Freedom of the Press Act of 1949 (an outgrowth of public reaction to the brief period of limited press control exercised during World War II as the result of German pressure), updated laws which were promulgated in 1766, 1810, and 1812 to establish basic safeguards for liberty of the press.

Amendments to any of these four basic documents require the passage of a bill by majority vote of the Riksdag on two successive occasions, with an intervening election to insure that the people have an opportunity to express their will. Such a time-consuming procedure capped the years of debate

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090019-6