Monetary policy has been aimed at maintaining price stability, which has given us lower interest rates and an increased stability and predictability, which is beneficial for the willingness to invest. Fiscal policy has also contributed through a consolidation of central government finances and the new budget system, which also gives us increased predictability. Sweden's membership of the EU's common market and deregulation also mean that several markets that were previously monopolies and screened off from competition, have now been opened up to competition. These include financial services, transport, telecommunications and energy. The pressure on companies to use their resources efficiently has thereby increased. The stiffer competitive pressure is both a result of increased internationalisation and of deregulation of various sub-sectors. The new competition act introduced in 1993 should also have contributed. However, despite the fact that it is several years since the new competition legislation was introduced, the development towards increased competition appears to be moving very slowly. One indication of this is that price levels in Sweden are higher than in many other countries, without this being completely explained by differences in VAT and wage levels. This applies, for instance, to foodstuffs and to the construction materials sector, areas characterised by a high company concentration, significant entry barriers for new companies and weak competition from imports. Some of the limitation in import competition is due to norms, standards and regulations that are specific to Sweden.

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