Nordea moves headquarters from Sweden to Finland

Banking giant Nordea has announced it will move its headquarters from Sweden to Finland in order to be part of the eurozone's banking union.

Nordea moves headquarters from Sweden to Finland
Sweden's Finance Minister Magdalena Andersson and Financial Market Minister Per Bolund commenting on the move. Photo: Claudio Bresciani/TT

Wednesday's decision was not entirely unexpected, but still sparked debate in the Swedish business sector, although to Sweden the symbolic value of the loss is possibly greater than the practical effects.

“All operations in the Nordic home markets will remain unchanged and there will be no change in our day-to-day operations from a customer perspective. Only a limited number of employees are expected to be affected and Nordea will continue to be a major tax payer in all four home markets,” Nordea said.

Nordea has been in conflict with the Swedish government for the past six months over proposed tax increases and regulations for resolution and deposit guarantees. It has said it wants its headquarters to be based inside the eurozone's banking union, of which Sweden is not a member, but Finland is.

CEO Casper von Koskull admitted the extra regulations had contributed to the move, but sought to downplay the conflict with the government and said the banking union was the biggest factor.

“We see the move as an important strategic step in positioning Nordea on a par with its European peers. The level playing field and predictable regulatory environment offered by the banking union are, we believe, in the best interest of Nordea's customers, shareholders and employees,” Nordea's chairman of the board of directors, Björn Wahlroos, added in a statement.

Asked if the government could have done more to keep the bank in Sweden, Finance Minister Magdalena Andersson told a press conference on Wednesday: “Yes, if they mean we should have rushed into the banking union. But how the banking union is developing is not at all clear, or predictable. I'm hearing how the members there are having fairly heated discussions about it.”

Deputy Finance Minister and Financial Market Minister Per Bolund said he did not believe the move would affect Sweden's plan to turn Stockholm into a Nordic hub for finance, contrary to what experts at the Stockholm Chamber of Commerce among others have predicted.

“Sweden still has a large banking sector and Nordea will still have large parts of their operations here. I don't think it will affect the interest in Sweden as a centre of finance,” he commented.

For members


REVEALED: EU plans digital-only Schengen visa application process

Soon those non-EU nationals requested to have a Schengen visa to travel to European countries will no longer need to go to a consulate to submit the application and get a passport sticker, but will be able to apply online. 

REVEALED: EU plans digital-only Schengen visa application process

The European Commission has proposed to make the Schengen visa process completely digital.

The special visa, which allows to stay for tourism or business (but not work) in 26 European countries for up to 90 days in any 6-month period. 

Nationals of third countries such as South Africa, India, Pakistan and Sri Lanka need the Schengen Visa to visit Europe, but they are not needed for other non-EU nationals such as Britons or Americans. You can see the full list of countries who need a Schengen visa here.

The proposal will have to be approved by the European Parliament and Council, but is in line with an agreed strategy that EU governments are keen to accelerate in the aftermath of the pandemic. 

Once agreed, the system will be used by the countries that are part of the border-free Schengen area. These include EU countries, excluding Ireland (which opted out), and Bulgaria, Romania, Croatia and Cyprus (which do not issue Schengen visas). Iceland, Norway, Lichtenstein and Switzerland, which are not EU members but have signed the Schengen Convention, will be part of the new system too.

Paper-based processes required applicants to travel to consulates to submit the application and collect their passports with the visa, a procedure that “proved problematic during the COVID-19 pandemic,” the Commission said.

Some EU countries have already started to switch to digital systems but not all accept online payments for the visa fees. 

When the new system will be in place, the Commission says, applicants will be able to check on the EU Visa Application platform whether they need a visa. If so, they will create an account, fill out the application form, upload the documents and pay. 

The platform will automatically determine which Schengen country will be responsible for the application and applicants will be able to check their status and receive notifications. Travellers will then be able to access the visa online, and if needed extend it too.

“Half of those coming to the EU with a Schengen visa consider the visa application burdensome, one-third have to travel long distance to ask for a visa. It is high time that the EU provides a quick, safe and web-based EU visa application platform for the citizens of the 102 third countries that require short term visa to travel to the EU,” said Commissioner for Home Affairs Ylva Johansson.

“With some member states already switching to digital, it is vital the Schengen area now moves forward as one,” said Commission Vice-President for Promoting our European Way of Life, Margaritis Schinas.

However, first-time applicants, people with biometric data that are no longer valid or with a new travel document, will still have to go to a consulate to apply.

Family members of citizens from the EU and the European Economic Area, as well as people who need assistance, will also be able to continue to apply on paper. 

The EU Visa Application platform will be used from third countries whose nationals must be in possession of a visa to enter the EU and is different from the ETIAS (European Travel Information Authorisation), which is currently under development.

The ETIAS will be used by non-EU nationals who are exempt from visas but who will need to apply for a travel authorisation prior to their trip. This will cost 7 euros and will be free for people below the age of 18 and above 70. 

Based on the discussion between the European Parliament and Council, the Commission could start developing the platform in 2024 and make it operational in 2026. EU countries will then have five years to phase out national portals and switch to the common online system.