When the finance ministers of Europe meet in Belgium next week, Borg’s objection will effectively put a stop to the current proposal, as it would need unanimous support to get the green light.
“There are a number of important questions remaining. We don’t think we’ve the reached a point where it’s possible during this Ecofin meeting to make a decision,” Borg told the TT news agency.
“There is still a lot of time left until the end of the year, if we need to make our minds up by then.”
Sweden has several objections against the current proposal, which includes European Central Bank (ECB) remit to supervise national banking sectors.
“It quite simply won’t work for us until we reach a compromise that everyone can live with,” Borg told TT after a meeting with the parliamentary EU committee in Stockholm on Friday, where committee members from other parties also gave him their support.
The proposed union aims to strengthen ties between EU banks, with the ECB playing a key supervisory role.
For non-euro countries like Sweden, taking part in the debate is voluntary.