A national health insurance system, financed by the state and employer contributions, was established to provide medical, sickness, and parental benefits to all Swedish citizens and alien residents.
Premier Tage Erlander's Social Democratic Party and Agrarian Party government resigned, following the withdrawal of the Agrarians on Oct. 24. On Oct. 26, Erlander's all-socialist minority government took office.
Premier Erlander said his government could not join the Common Market because the views of that organization could not be reconciled with Sweden's policy of neutrality, but he declared Sweden's willingness to negotiate with Common Market countries (Aug. 28), so long as any compromises did not affect Swedish neutrality.
The ruling Social Democratic Party gained 12 seats in the election for the lower house of the Riksdag, the first clear Social Democratic majority in the Riksdag since 1940.
Sweden established diplomatic relations with North Vietnam and became an asylum for deserters from the U.S. forces. The Vietnam War contributed to a rise in anti-American sentiment among Swedes.
Parliamentary system reform: the Riksdag approved legislation to change the existing bicameral Parliament into a unicameral system. The single chamber was established on Jan. 1, 1971, with 350 members serving three-year terms, and it became constitutional on Jan. 1, 1975.
