Relationship
Sweden has been a Member State of the European Union (EU) since 1995. In this context, the Riksbank is primarily involved in co-operation in the economic and financial area.
The Riksbank’s governor takes part in informal ECOFIN meetings when the finance ministers meet twice a year with the central bank governors of the EU countries. No formal decisions are taken on these occasions but agreements can be made on political guidelines for future work at EU level. Formal decisions on coordination of economic policies are taken by the finance ministers in the ECOFIN Council and, on financial regulations for the EU internal market, jointly with the European Parliament.
In addition to these high-level meetings, the Riksbank, usually together with the Ministry of Finance, takes part in 10-15 committees and working groups in the EU framework.
The Riksbank is represented by a deputy governor in the Economic and Financial Committee (EFC) when the committee meets in full composition, on average every second month. This committee is composed of finance ministry state secretaries and central bank deputy governors, and its primary task is to provide advice on important economic policy and financial issues to the ECOFIN Council and to the European Commission. Twice a year, the EFC specifically discusses financial stability issues. Where appropriate, the Committee also prepares the entry of new currencies and setting of central rates in ERM II. The Riksbank is also represented in the preparation of EFC regular meetings by Alternates, as well as in other permanent sub-committees of the EFC, for issues concerning the IMF and euro-coin issues. In the two other permanent EFC sub-committees, for statistics and government borrowing, Sweden is represented by other authorities under the Ministry of Finance. Nevertheless, in the field of monetary, financial and balance-of-payments statistics, the Riksbank is involved in Eurostat committees and working groups. On the occasions when the EFC meets in restricted format with only representatives of finance ministries, the ECB and the Commission attending, the Riksbank informally monitors the issues under discussion. The Riksbank occasionally also takes part in the work of the Economic Policy Committee (EPC), which mostly has structural issues on its agenda.
An observer from the Riksbank participates when the Committee of European Banking Supervisors (CEBS) meets around five to six times a year with representatives from the financial supervisory authorities and central banks in the EU. As part of the so-called Lamfalussy structure for banking legislation in the EU, the CEBS has the task to promote a uniform application of EU banking regulations in the member states and a harmonisation of supervisory practices. There are similar committees for insurance and securities, but the Riksbank does not participate in those.
Priority issues
Financial regulation, supervision and crisis management in Europe
The Riksbank attaches great importance to the creation of effective forms for the management of financial crises with cross-border repercussions. EU cooperation in the financial area has intensified in recent years but is still mainly based on the formal competence of national authorities. The Riksbank supports initiatives to strengthen co-operation between national authorities in order to improve the regular monitoring of cross-border financial and crisis management. The Riksbank welcomes promote further financial integration in the EU and supports the Commission’s Financial Services Action Plan.
Stability and Growth Pact
The Riksbank favours a clear regulatory framework that will contribute to sustainable development of public finances in the member states.
True and fair assessment of Sweden
The Commission’s assessment of the Swedish economy and conditions in Sweden at large shall be true and fair. In the context of the Commission’s assessments of the performance relating to the convergence criteria for the adoption of the single currency, equal treatment should apply as compared to countries that have already joined the euro area. The implementation of the exchange rate criterion and the compatibility of the legislation for the Riksbank with the Treaty and the ESCB Statute are central aspects of the convergence assessment concerning Sweden.