Parliamentary Control, Public Discussions andRoyal Autonomy: Sweden, 1750-1780

Abstract

This article explores developments of secrecy and transparency in relation to fiscal affairs in 18th century Sweden. During the 1750s the government mostly relied on subsidies and loans from the Bank of Sweden to finance deficits and major projects. This system supported the ruling oligarchy and the secrecy that surrounded its financial operations. The system was changed following the Seven Years’ War when the subsidies stopped arriving and the falling value of the Swedish currency forced limitations on the issuance of bank liquidity. Instead external borrowing, in Amsterdam and Genoa, and internal borrowing expanded. This change went hand in hand with increasing openness concerning fiscal affairs and more critical public discussions about the use of resources. However, the inability to find compromises led to the royal coup in 1772, which in turn resulted in a strengthening of royal power and a stop to open discussions about key fiscal affairs. The period ended with a return to greater economic stability, but it also entailed a return to the secrecy of the 1740s and 1750s.