LONDON The head of Swedish telecommunications group Ericsson has warned that the group could direct new investments outside of the country if Sweden rejects joining the Euro in next month's referendum.
The controversial foray into the campaign by Carl-Henric Svanberg, in an article published in the Swedish newspaper Dagens Nyheter, came as opinion polls suggested the 'Yes' campaign is making little headway into a big lead built up by those who are fighting to retain the Swedish Krona rather than join the single currency.
Svanberg warned that Sweden could face a huge drop in inward investment by multinational companies if the country votes against the Euro on September the 14th.
Such groups would not want to take the risks involved in being exposed to a relatively small and unstable currency, he suggested.
"When you develop a new product and are going to build a new production line, you always have a choice: should you do it in your Swedish factory, or in your French, or German, or Japanese factory. In the end more of these decisions are going to work against Sweden in the event of a 'No' vote," said Svanberg.
And his veiled threat that an international group such as Ericsson might need to direct its investments to areas where there are fewer currency exchange risks was bitterly attacked by groups camapigning to reject the Euro.