A country in northern Europe, Sweden had become one of the great powers of Europe by the late 1660s. But it suffered a military defeat by Russia in the early 1700s and gradually lost most of its European possessions. Sweden's last war was fought in 1814, as a brief confrontation with Norway to restrain its demands for independence resulted in Norway entering into a union with Sweden. Ninety years later, the Sweden-Norway union was peacefully dissolved at Norway's request in 1905. Sweden is known throughout the world for its neutrality, considering the country remained neutral during both world wars. With the ending of the Cold War, Sweden joined the European Union in 1995 although it still declines to become a NATO member. Sweden also rejected the adoption of euro in a 2003 referendum. Once having an agriculturally-based economy, Sweden today is a highly industrialized country. This economic transformation has been facilitated by rich resources of iron, hydroelectric power and timber, which have contributed to the development of metal products, automotive, machinery, transport equipment, and paper products. More recently, Sweden's commitment to high levels of research and development has led to the development of prominent pharmaceutical, telecommunications and information technology sectors. The Swedish people enjoy an advanced welfare system and a high standard of living.