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Political Economy

Anders Borg, Swedish Finance minister sees a possible compromise on the EU banking union

Tuesday, 04 December 2012
Swedish finance minister, Anders Borg is more optimistic about the chances of reaching a deal on the controversial banking union in the EU at today's Finance Ministers.

The Swedish requirement for an amendment to the EU Constitution to give the non-euro countries equality has received increasing support. As such the Swedish finance minister softened his tone slightly about the chances of a deal on the European Union's proposal for a single supervisor for euro-zone banks as he entered a meeting of EU finance ministers, or Ecofin, in Brussels to discuss the matter.

"We are beginning to see the components of a compromise," said Finance Minister Borg on the way to the meeting. But stressed that "Sweden has a very clear position. We will not accept a solution that gives us a second - class membership of this supervisory authority. All must be treated equally ..."
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Anders Borg pointed out that the European Commission in a new report also says that it requires a change to the EU Treaty to ensure non-euro countries position in a European financial supervisory authority over the European Central Bank.

"The Commission says in its blueprint that it aims to create a firewall between monetary policy and bank supervision that the Germans need, and they also want to create equality between countries - a treaty change was the most reasonable option. It is obvious that the Commission made the same legal analysis as we do."

"There are many indications that a simplified treaty amendment. Section 127 is already in the Treaty. This means that there is no question of the transfer of sovereignty, as it was in the last treaty change," said Anders Borg.

He estimates that such a treaty change would take 18-24 months to complete, and then it must be approved by all the EU countries' parliaments. It probably means that Sweden would not join the union bank until this constitutional amendment implemented.

Mr. Borg said last Friday after consulting lawmakers in Stockholm that it wouldn't be possible to reach agreement on the banking union at Tuesday's meeting, so the tone of his comments today represented a slight softening of his stance.
by Scancomark.com Team

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