Stenbockska palatset. Stockholm, the capital of Sweden, is a progressive city. Set at the point where the waters of Malaren (Lake Malar) rush into the Baltic, Stockholm is one of Europe’s most beautiful capitals. Nearly 1.5 million people live in the greater Stockholm area, yet it remains a quiet, almost pastoral city. Built on 14 small islands among open bays and narrow channels, the city is handsome and civilized. It is filled with parks that cover nearly a third of the entire city, and with squares and airy boulevards, yet it’s also a bustling metropolis. Glass and steel skyscrapers abound but you are never more than five minutes walk from twisting medieval streets and waterside promenades.