SWEDEN'S ruling Social Democratic Party (SDP) has ruled out EMU membership in January 1999, but left the door open for membership later.

Swedish Prime Minister and SDP leader, Mr Goeran Persson, said the party based its decision on the fact that it considered the EMU project to be "shaky" and that public support was "weak" because of general disappointment with the European Union, which Sweden joined in January 1995.

Mr Persson, noting that the Swedish people were "split" over EMU, said either a referendum or some sort of election would be held to decide the issue. "Our `no' is not a `no' forever. There could be a situation in the next mandate period which could allow us to put membership to the test," he said. He expected the single currency to be launched in 1999. The decision was widely expected, although both Mr Persson and his finance minister, Mr Erik Aasbrink, have remained tight-lipped on the subject for over a year.

The "soft no" position, as it is being called in Sweden, is in reality a "wait-and-see" policy designed to allow the country - the most Eurosceptic of all EU members - to hold off until EMU is up-and-running so that it can determine the benefits of a single currency.