The Gulf of Bothnia, at the Gateway to the Arctic

Stockholm is a city in the flush of its second youth. Since the mid-1990s, Sweden's capital has emerged from its cold, Nordic shadow to take the stage as a truly international city. What started with entry into the European Union in 1995 gained pace with the extraordinary IT boom of the late 1990s, strengthened with the Skype-led IT second wave of 2003, and solidified with the hedge-fund invasion that is still happening today as Stockholm gains even more global confidence. And despite more recent economic turmoil, Stockholm's 1 million or so inhabitants have, almost as one, realized that their city is one to rival Paris, London, New York, or any other great metropolis.With this realization comes change. Stockholm has become a city of design, fashion, innovation, technology, and world-class food, pairing homegrown talent with an international outlook. The streets are flowing with a young and confident population keen to drink in everything the city has to offer. The glittering feeling of optimism, success, and living in the here and now is rampant in Stockholm.Stockholm also has plenty of history. Positioned where the waters of Lake Mälaren rush into the Baltic, it’s been an important trading site and a wealthy international city for centuries. Built on 14 islands joined by bridges crossing open bays and narrow channels, Stockholm boasts the story of its history in its glorious medieval old town, grand palaces, ancient churches, sturdy edifices, public parks, and 19th-century museums—its history is soaked into the very fabric of its airy boulevards, built as a public display of trading glory.

A city of the sea, Helsinki was built along a series of oddly shaped peninsulas and islands jutting into the Baltic coast along the Gulf of Finland. Streets and avenues curve around bays, bridges reach to nearby islands, and ferries ply among offshore islands.Having grown dramatically since World War II, Helsinki now absorbs more than one-tenth of the Finnish population. The metro area covers 764 square km (474 square miles) and 315 islands. Most sights, hotels, and restaurants cluster on one peninsula, forming a compact central hub. The greater Helsinki metropolitan area, which includes Espoo and Vantaa, has a total population of more than a million people.Helsinki is a relatively young city compared with other European capitals. In the 16th century, King Gustav Vasa of Sweden decided to woo trade from the Estonian city of Tallinn and thus challenge the Hanseatic League's monopoly on Baltic trade. Accordingly, he commanded the people of four Finnish towns to pack up their belongings and relocate to the rapids on the River Vantaa. The new town, founded on June 12, 1550, was named Helsinki.For three centuries, Helsinki (Helsingfors in Swedish) had its ups and downs as a trading town. Turku, to the west, remained Finland's capital and intellectual center. However, Helsinki's fortunes improved when Finland fell under Russian rule as an autonomous grand duchy. Czar Alexander I wanted Finland's political center closer to Russia and, in 1812, selected Helsinki as the new capital. Shortly afterward, Turku suffered a disastrous fire, forcing the university to move to Helsinki. The town's future was secure.Just before the czar's proclamation, a fire destroyed many of Helsinki's traditional wooden structures, precipitating the construction of new buildings suitable for a nation's capital. The German-born architect Carl Ludvig Engel was commissioned to rebuild the city, and as a result, Helsinki has some of the purest neoclassical architecture in the world. Add to this foundation the influence of Stockholm and St. Petersburg with the local inspiration of 20th-century Finnish design, and the result is a European capital city that is as architecturally eye-catching as it is distinct from other Scandinavian capitals. You are bound to discover endless engaging details—a grimacing gargoyle; a foursome of males supporting a balcony's weight on their shoulders; a building painted in striking colors with contrasting flowers in the windows. The city's 400 or so parks make it particularly inviting in summer.Today, Helsinki is still a meeting point of eastern and western Europe, which is reflected in its cosmopolitan image, the influx of Russians and Estonians, and generally multilingual population. Outdoor summer bars ("terrassit" as the locals call them) and cafés in the city center are perfect for people watching on a summer afternoon.