Sweden's beleaguered alcohol monopoly Systembolaget has become a minority supplier, with thirsty citizens importing more drink privately than is sold domestically through the state-owned drinks network, a news report said Thursday.

Swedes brought some 2.95 million litres of alcohol back from trips abroad in January and February, which compares with 2.85 million sold in the 420 Systembolaget stores, the TT news agency said.

Sweden imposes high taxes on alcohol, and created the Systembolaget stores to keep a lid on drinks consumption and protect public health.

But European integration, which has forced Sweden to raise the quantity of alcohol that can be imported legally, has undermined the system as Swedes shift crates and crates of drink back from neighbouring countries where alcohol is much cheaper.

"This trend has been in evidence since the first quarter. Our spirit sales are falling, and the drop is accelerating," said Systembolaget chief Anitra Steen.

The pressure on Sweden has been growing since Denmark cut alcohol taxes by 45 percent last October, causing Systembolaget's market share in southern Sweden to shrink to just 30 percent.

Finland lowered its drinks taxes by a third on March 1.

Fearing a further downward spiral, Steen is calling for Swedish tax cuts in face of increased competition from new EU members, especially the Baltic states.

"It is important that we get a tax level that motivates customers to buy from us instead of abroad," said Steen, who is likely to have Swedish Prime Minister Goeran Persson's ear by virtue of him being her husband.

Tax on a litre of spirits with 40 percent alcohol content is 200 Swedish kronor (22 euros) in Sweden, compared with the equivalent of 103 kronor in Finland, 73 in Denmark, 47 in Germany, 35 in Poland, 34 in Estonia and Lithuania and 31 in Latvia.