King Carl Gustaf of Sweden reveals during his Christmas speech that controversial decision to strip grandchildren's royal titles was to help them 'carve out their own future'

King Carl Gustaf of Sweden used his annual Christmas speech to address why he chose to strip five of his grandchildren of their royal titles.

The monarch made the controversial decision back in October, following the launch of an investigation by the Swedish parliament - the Riksdag - last year into how the £12million annual budget of the generally popular royal family could be kept under control, the Daily Mail reoirts. 

On Wednesday the King addressed his nation, describing the festive period as a time for 'reflection' and explaining his reasoning for taking away his grandchildren's royal status.

'Earlier this year I made a decision to define what is called the royal house,' he explained.

The decision was to make clear who within the royal family will act as official representatives of Sweden in the future. For me, this is a way of clarifying what expectations are.

'It will hopefully be helpful when my grandchildren eventually carve out their own future. But, to that day, it is far away.'

King Carl began by describing Christmas as a 'special holiday, surrounded by traditions'. 

'No matter what your Christmas weekend looks like or where you spend it, I hope it gives you time for reflection,' he said, going on to address the challenges faced by Sweden and the world.

He gave a special mention to people who work on Christmas Day in the armed forces, elderly care and public transport, before revealing he and his wife Queen Silvia were 'looking forward to' spending the day with the family.

'We now have seven small grandchildren between one and seven years. It is not always so peaceful and quiet, but very funny!' he added.

The five youngsters stripped of their royal titles, aged between one and five, are the offspring of the King's two younger children, Prince Carl Philip and Princess Madeleine, and their respective partners. 

As a result, they are not directly in line to the throne and Princess Madeleine - mother to Princess Leonore, five; Prince Nicolas, four, and Princess Adrienne - said they would now have 'a greater opportunity to shape their own lives'. 

Also affected are Prince Alexander, three, and Prince Gabriel, two, who are the children of Prince Carl Philip and his wife Sofia Hellqvist. 

The five children will still be members of the royal family, but will not be referred to as His or Her Royal Highness and will not have access to taxpayer funds. 

The Swedish children will retain their titles of duke and duchess, which were bestowed by the king.