Sweden to refuse EU Banking Union in current guise – reports

Anders Borg, Sweden’s minister for Finance, has warned that his government will vote against any final proposal for EU Banking Union if put forward at next week’s Ecofin Council meeting.

The position has been taken because Sweden’s own EU Committee in Parliament has said that it is too early to make a decision given the number of questions still to be answered on how any such Union would actually work.

Borg (pictured) has told a press briefing this morning that more meetings are required and that “we are ready to negotiate every day, every hour” until the end of the year to reach a compromise.

Sweden’s official position currently is that non-eurozone member countries should have the same legal status and voting power in any agreed Banking Union regime. It is not in agreement with existing proposals that would alter the structure of the ECB.  It wants a firewall betweeen monetary policy and regulatory policy, as well as a deal to avoid positions of influence, for example, in any oversight board to the Union coming exclusively from eurozone member states.

There are also outstanding questions around the weight of votes in any new banking authority stemming from adoption of Banking Union. Sweden believes that the influence of non-eurozone members must be secured, Borg said.

And Sweden wants a satisfactory agreement over capitalisation rules, deposit guarantees and crisis management mechanisms.

“I currently have near unanimous backing of Parliament to block decisions at this meeting if necessary, and instead ensure that we get further rounds of negotiations through December,” Borg said.


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