EU: Sweden's rejection of the euro just eight years after it joined the European Union was seen as a clear euro-sceptic snub in Brussels yesterday.
The first vote on the euro since the notes and coins came into circulation last year ended in a resounding vote of no confidence in the single currency, with 56 per cent of Swedish voters opting to keep the krona.
The European Commission said in a statement it believed the single currency had brought stability to the euro zone and made the single-currency area "the most competitive and socially cohesive area in the world".
"We are confident that the Swedish government will choose the way forward to keep the euro project alive in Sweden," the Commission said.
Mr Romano Prodi, the President of the Commission, was less diplomatic, saying Sweden would "certainly" lose influence in the EU for not adopting the euro.
Ms Margot Wallström, Sweden's EU commissioner, agreed. "I think there will be both an economic and political price to pay for remaining outside," she said on Swedish radio, adding: "Our geographical location, language and culture affect our attitude and means that many do not feel close to Brussels."
Sweden's No to the euro leaves the country in a legal grey area. Stockholm committed itself to joining the euro eventually by signing the Maastricht Treaty a decade ago. Unlike Britain and Denmark, Sweden did not agree an opt-out clause, and the Commission says Sweden is still obliged to join the currency.
"Sweden has an overall obligation once the criteria have been fulfilled to join European Monetary Union," said Mr Gerassimos Thomas, Commission spokesman on economic and monetary affairs. "It is the job of the member-states to decide whether Sweden should be given an opt-out now, but it is the view of the Commission that no more opt-outs should be given."
Mr Pat Cox, the President of the European Parliament, expressed respect but regret for the decision of Swedish voters.
"I remain convinced that both Sweden and the current euro countries would have gained from an extension of the euro area," he said in a statement.
Mr Wolfgang Roth, vice president of the European Investment Bank, said Sweden was not really independent, even outside the euro zone, and was bound to follow interest rate decisions of the European Central Bank.
"Small countries like Sweden must behave outside the euro framework as if they have the euro," he said.
The Danish Prime Minister, Mr Anders Fogh Rasmussen, said the Swedish rejection of the euro would have "no bearing" on Danish attitudes to the euro or his plans to hold another referendum.
More than 56 per cent of Danes would vote to adopt the euro if a referendum were arranged today, according to an opinion poll published on Sunday.
The German Foreign Minister, Mr Joschka Fischer, said the EU must find a way to deal with the Swedish decision.