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In 1697, Tre Kronor (castle) burned and was replaced by Stockholm Palace.In 1710, a plague killed about 20,000 (36 percent) of the population.Stockholm's core, the present Old Town (Gamla Stan) was built on the central island next to Helgeandsholmen from the mid 13th century onward.The city originally rose to prominence as a result of the Baltic trade of the Hanseatic League.The city stretches across fourteen islands where Lake Mälaren flows into the Baltic Sea.Just outside the city and along the coast is the island chain of the Stockholm archipelago.By the second half of the 19th century, Stockholm had regained its leading economic role.New industries emerged and Stockholm was transformed into an important trade and service centre as well as a key gateway point within Sweden.
Between 12 Stockholm's City Council was made up of 24 members, half of whom were selected from the town's German-speaking burghers.
The second part of the name (holm) means islet, and is thought to refer to the islet Helgeandsholmen in central Stockholm.
According to Eric Chronicles the city is said to have been founded by Birger Jarl to protect Sweden from sea invasions made by Karelians after the pillage of Sigtuna on Lake Mälaren in the summer of 1187.
Ericsson Globe, the national indoor arena, is in the southern part of the city.
The city was the host of the 1912 Summer Olympics, and hosted the equestrian portion of the 1956 Summer Olympics otherwise held in Melbourne, Victoria, Australia.
In 1634, Stockholm became the official capital of the Swedish empire.