If the mayor of Haparanda had had his way, his small town on the Finnish border would join the eurozone in January - even though it is in Sweden. Indeed, mayor Bengt Westman held a press conference in Brussels two years ago to announce that the euro would become a parallel currency, alongside the Swedish krona, in Haparanda. Unfortunately, it hasn't quite turned out like that, even though euro notes and coins will be accepted in the town's shops and restaurants from day one. Haparanda is in northern Sweden and so close to the Finnish town of Tornio that the local golf course criss-crosses the border four times. Haparanda wanted to pay Finns working for the local council in euros, just as it wanted Swedes working in Finland to be able to pay their Swedish council bills in the single currency. "We saw it as a way to make Haparanda a more attractive employer. We have skill shortages in some areas, such as care, and we need to entice Finns to work here," says Allan Fjallvind, the council's financial manager. He notes that Finns working in Haparanda have effectively taken a pay cut this year because of the krona's fall against the euro. However, lawyers have advised Haparanda not to pay its Finnish workers in euros because it would breach an equality clause in the Swedish constitution. As the krona floats against the euro, staff might receive different pay for the same job.
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