• Sweden edition
 
Sweden's Borg dismisses EU bank supervision plan
Anders Borg, right, talks prior to the ECOFIN meeting in Nicosia, Cyprus.

Sweden's Borg dismisses EU bank supervision plan

Published: 16 Sep 2012 10:46 GMT+02:00
Updated: 16 Sep 2012 10:46 GMT+02:00

Sweden is a member of the EU although not the eurozone, and Borg said that "long and tough" negotiations lie ahead with "a large number of countries that are not members of the eurozone" deeming the proposal "unacceptable."

Borg said that EU treaty guarantees of independence for the Frankfurt-based ECB -- which he said would mean it was not bound by EBA mediation in case of disputes -- meant there was much work to be done "before we are anywhere close to any compromise".

"We cannot accept that the money of Swedish taxpayers is used to bail out foreign banks," he said.

"The whole idea that we would be under the supervision of an institution where we have no voting rights, where (spending decisions on) our taxpayers' money could depend on decisions taken by an institution where we have no influence, is completely unacceptable."

He said these were "red lines" for opponents.

The plan, which has been hailed as a cornerstone of future political union, appeared doomed after two days of talks in Cyprus, which drove a fresh wedge between the 17 eurozone partners and the other 10 European Union states.

The plan, unveiled by EU banking commissioner Michel Barnier, thus looks set to miss the deadline for implementation due to EU treaty restrictions as opposition grew.

German Finance Minister Wolfgang Schäuble said it became immediately clear

during a feisty debate that the target-date for adoption of January 1, 2013,

was no longer attainable.

"January 1st, that will not be possible," Schaeuble said, adding that it was "not even worth having that discussion."

The nub of the breakdown was what Barnier called a "juridical problem."

"We are going to continue working to improve the relationship when it comes to voting on the supervisory council for non-eurozone countries who want to be covered by the mechanism," Barnier pledged.

He underlined that non-euro countries could choose to opt in or out, although he stressed that regulations would be designed to function across the full European single market, which includes all 10 non-eurozone states.

In Barnier's proposal as unveiled earlier in the week, the supervisory council was to be composed of ECB and eurozone figures only.

European Central Bank deputy head Victor Constancio said the ECB would decide alone whether and how to grant voting rights and influence to non-euro countries brought into the new supervisory regime, given EU treaty guarantees of independence.

Asked if a treaty change may be required, a spokesperson for the Cypriot EU presidency said: "There is a chance."

The lengthening list of problems -- so much so that Britain's George Osborne did not even speak out publicly on London's own reservations -- leave Barnier with a mountain to climb to meet the goal set for him by EU leaders at a June summit of installing new European-level supervision by January 1st, 2013.

Barnier's proposal requires unanimity among the 27 EU states, at least a sustained attempt over a lengthy period of listening under EU lawmaking rules.

Seen by leaders as the first step towards full economic and political union, the "banking union", agreed to as the way out of structural problems highlighted by the debt crisis, is in turn designed to draw in non-euro countries -- all but two of which are treaty-bound to move to the euro over time.

The plans already faced other obstacles including a German-expressed need to establish a related resolution fund for winding down broken banks, and the role of the London-based European Banking Authority (EBA) -- itself created out of the financial crisis.

AFP/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

15:12 September 16, 2012 by skatty
US Dollar will get a real challenge by strong Euro on a solid base! Americans will be upset to see anything to challenge the monopoly of Dollar; Swedes have to choose in future.
23:31 September 16, 2012 by joolzg
Strong euro, you mean artifiically strong euro, based on the fact that Germany, the powerhouse of the EU, needs it strong otherwise it will not be able to bail out all the countries that need the bailouts.

If we got rid of the week countries, mainly the southern european ones, the it would be strong, but it is 30% too high in real terms but the powers to be will keep on buying and selling bank bonds until the cows come home to keep Germany happy, and if Germany decides its not happy and starts saying NO then this PONZI SCHEME will collapse.
23:37 September 16, 2012 by Hisingen
There is absolutely no valid reason to support monopoly money, nor be 'supervised' by a totalitarian attempt at a eurobank. Borg is absolutely right, and as to a strong euro - that will be the day.
00:24 September 17, 2012 by FotoGuy
Just in case you guys don't read international news...US FED is pumping 40 Billion a MONTH into the system now..this translates into massive inflation over time, and devaluation of the US dollar. In 6 months the US dollar will loose considerable value!
Today's headlines
Sweden keeps eye on Norway bomb threat
Norwegian police car at Oslo Gardemoen Airport. Photo: TT

Sweden keeps eye on Norway bomb threat

The Swedish Security Service (Säpo) have said that an "imminent terror threat" to neighbouring Norway doesn't yet affect Sweden although developments are being closely followed. READ  

Seven-year-old Swede cycles to Berlin
The Blomdahl family in Berlin. Photo: Private

Seven-year-old Swede cycles to Berlin

Edvin Blomdahl is seven-years-old. He also cycled from Sweden to Berlin, a journey of 370 kilometres, in four days. READ  

Opinion
'Gaza conflict needs help, not empty rhetoric'
Demonstrations at Sergels Torg in Stockholm. Photo: Kent Vilhelmsson

'Gaza conflict needs help, not empty rhetoric'

As the rhetoric rises at demonstrations in Swedish cities, Stockholm-based Israeli writer David Stavrou calls on Swedes to think before they shout and to cast a critical eye over much that is written and said about the conflict in Gaza. READ  

Brit's charity tractor trek heads for Sweden
The vintage tractor ready to travel from UK to north Norway. Photo: Peter Matheson

Brit's charity tractor trek heads for Sweden

A British man is set next month to drive from Scotland, across Sweden, and to the northern tip of Norway on a vintage tractor to raise money for a cancer charity. READ  

Sweden agency hikes heat warning to 'extreme'
This canine friend is not amused. Photo: TT

Sweden agency hikes heat warning to 'extreme'

Swedish weather agency SMHI has raised its weather warning to class 2, giving notice of "extremely high temperatures" in parts of the country. READ  

Songs for a hot Swedish summer
Ted Gärdestad. Photo: TT

Songs for a hot Swedish summer

Contributor Paul Connolly has put together a list of Swedish songs to capture balmy summer days, which in his neck of the northern woods are pushing the mercury above 35c for the first time in a century. READ  

Swedes suffer as buses boil in the summer sun
Photo: TT

Swedes suffer as buses boil in the summer sun

Stockholm's local traffic authority has received almost 300 complaints since June 1st with many regarding stifling heat on the city's buses, which lack air con. READ  

Grounded flights strand Swedes in Tel Aviv
Photo: Matt Rourke/TT

Grounded flights strand Swedes in Tel Aviv

UPDATE: About 270 passengers planning to fly to Stockholm are still stranded in Tel Aviv, and airlines have stated that flights will likely be grounded on Thursday as well. READ  

The Local List
Top ten: Swedish taboos
The butter knife is for butter. Photo: Mats Sandelin/TT

Top ten: Swedish taboos

From standing in line to taking your hols in the off-season, Sweden is a society with customs and faux pas, the Danes might say taboos. Here is a list of ten to watch out for. READ  

Fears mount for Swede kidnapped in Ukraine
A tank in Horlivka. Photo: Dmitry Lovetsky/TT

Fears mount for Swede kidnapped in Ukraine

A mediator who handles prisoner exchanges between Ukraine and pro-Russian rebels said on Wednesday that he feared for the life of a kidnapped Swede. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Blog updates

22 July

Det (The Swedish Teacher) »

"Hej! “Det” is a personal pronoun that can be used in many ways, and it might me confusing if you always translate “det” to English “it”. In this article I will do my best to guide you to how to use “det”. Det replacing a word, a phrase or a clause Let us begin with the less confusing..." READ »

 

22 July

PROTECTING GIRLS FROM ABUSE OF THEIR RIGHTS (The Diplomatic Dispatch) »

"Today (22 July) my Prime Minister, David Cameron, and UNICEF, are hosting the world’s first #GirlSummit in London. The Summit’s aim is to mobilise domestic and international efforts to end the appalling practices of Female Genital Mutilation (FGM) and Child Early Forced Marriage (CEFM). This is a high priority for the UK government and the Prime..." READ »

 
 
 
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Gallery
People-watching July 11-13
National
Malmö mayor slams Danish beggar ban
National
Swedish anti-abortion midwife sues county
National
Swede's salary chopped for Facebook use
National
Northern Sweden warmest in 90 years
Gallery
'Victoria Day': Crown Princess Victoria turns 37
Politics
Mona Sahlin to fight extremism in Sweden
National
EU tells Sweden to cover up snus flavours
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

713
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se