German-Swedish contacts date back to the Middle Ages, and the relations were marked by multiple conflicts and wars.
In 1570 German mercenaries unsuccessfully revolted against Sweden in then Swedish-ruled Reval (modern Tallinn, Estonia).
Sweden's involvement in the war weakened Imperial authority and delayed the unification of German states, which occurred only in the 19th century.
During the First World War (1914–1918), though Sweden would remain officially neutral throughout the conflict, widespread sympathies existed towards Imperial Germany amongst the Swedish population, especially within the nobility, including the King.
Sweden's perceived partiality towards the Central Powers despite her proclaimed neutrality drew sharp criticism from the Allied Entente.
The 1914 Septemberprogramm authorized by German Chancellor Theobald von Bethmann Hollweg proposed the creation of a Central European Economic Union, comprising a number of European countries, including Germany and possibly Sweden, in which, as the Chancellor secretly stressed, there was to be a semblance of equality among the member states, but in fact it was to be under German leadership to stabilize Germany's economic predominance in Central Europe, with co-author Kurt Riezler admitting that the union would be a veiled form of German domination in Europe (see also: Mitteleuropa).
In 1926 the trade and shipping treaty between the two countries was cancelled by Germany, because of disadvantages for German agrarian economy.
But still the upper classes of Sweden derived their culture and inspiration from the German universities, conservatories and art centers.
[8] The domestic political development of Germany, especially the rapid increase of the influence of National Socialism in the German policy after 1930, was observed with big interest by Sweden.
The Swedish press adopted a distanced and critical attitude towards National Socialism which caused disgruntlements between the German-Swedish relations.
But Arvid Richert, the Swedish envoy in Berlin expressed his apprehension that Sweden could be involved in the war.
He advised Sweden that they had to show resistance and attention in relation to statements about Germany to protect their country.
[17] The number of the engagement of German companies in Sweden is about 870, with about 50.000 employees and estimated annual sales around 30 milliard euros.
Bilateral relations could be registered in the sections labor market reform, professional training and nursing care insurance.
Besides Goethe-Institut and Deutsche Schule Stockholm, further partner schools are of concern for the support of the German language in Sweden.