NZ embassy in Stockholm to close

The New Zealand embassy in Stockholm is to be closed.

After weeks of controversy around the restructuring of the Foreign Affairs Ministry, minister Murray McCully has confirmed the embassy in the Swedish capital is going.

It was opened in 2008 under Labour, and downsized in 2009.

Mr McCully says the closure will be accompanied by other moves that will save about $10 million a year in European posts.

"It's one that was downsized from 2009, and we've judged, on the basis of a review done by Foreign Affairs, that closure now is the right thing to do because we could represent New Zealand's interests perfectly well from Brussels."

Mr McCully says over the next couple of weeks, expect to see more announcements about the future of posts and accommodation in Europe in order to make those savings.

"In Paris there's a very expensive old chateau, it costs us probably $9 million to $10 million a year to run the Paris post. We should be spending closer to $4.5 - $5 million a year, so we'll relocate into more appropriate accommodation."

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