STOCKHOLM (09/15/2003) - Swedish voters on Sunday rejected the euro, the common European currency. The result is seen as an uprising against the political and business establishment. The effects on the IT industry will not mean a lot in the short term, however.
These are but a few reactions on how the rejection will affect the IT industry in Sweden.
- Business is convinced the prices will not change. The market has already taken into account a "no" based on the poll statistics.
- Prices will not be worse, but the positive trend will not be at hand.
- The currency risk increases and therefore there is less room for competition and price pressure.
- No huge differences. Price pressure will continue. The Swedish consultancy companies will have to fight for business when old systems have to be renewed.
- The consultancy companies will get less to do when the IT departments can go on using the installed systems.
- In a longer perspective more effort may be needed in order to keep Swedish systems up to date.
- Salary increases will not be as fast as if Sweden had accepted the euro.
- Not accepting the euro may lead to lower investment in IT and hence slower growth.
- If Sweden is not as attractive to do business with, salaries may even decrease.
- Making it possible for citizens to access governmental services via the Internet will continue to be the top priority. Projects that may have been postponed when waiting for the poll result will be started. Additional resources instead of the euro conversion will not be at hand.
- Business as usual. The IT projects continue as planned in the short term. As the companies now know what to deal with, the market may even grow.
- IT departments in the trades where the conversion work would have had most impact will go on and evaluate what other development projects must be taken care of.
- At least part of the budget meant for euro conversion will be used in other projects. It may lead to a total increase in IT spending.
- In the short term the employment situation will not change. The employment rate may decrease if the interest rate increases and the investment climate changes.
- As new countries enter the European Union, there will be more countries and companies to choose from. That could be negative for countries not joining the euro zone.
- Swedish companies may not be chosen. IT companies in Europe add an additional sum on the tenders because of the currency risk. That will have be negative for Swedish companies.