Relationship

As Sweden’s central bank, the Riksbank is part of the ESCB since its inception in 1998. The ESCB comprises the European Central Bank (ECB) and the national central banks of all EU Member States (see Other EU co-operation).

The ECB and the national central banks of the sixteen EU countries that have so far adopted the euro are jointly referred to as the Eurosystem. Given Sweden’s current status as a country with a derogation concerning the adoption of the single currency, the Riksbank is not part of the Eurosystem.

Central banks that are members of the ESCB but not of the Eurosystem, retain responsibility for monetary policy and other ESCB-related tasks in their respective national context. The Riksbank governor is a member of the General Council of the ECB, which meets every quarter to exchange information and promote co-operationbetween central banks in the EU, with a general view to permitting entry into the Eurosystem at a later stage in connection with the adoption of the euro. . The General Council inter alia adopts the ECB convergence reports, where the performance in relation to the economic convergence criteria in the Treaty and the compatibility of national legislation with the Treaty and the ESCB statute are being examined for countries with a derogation. Such reports are prepared every two years or at the request of a member state seeking to join the euro area. In recurrent such examinations, it is noted that the krona is not part of the ERM II and that Sweden does not fulfil the criterion on exchange rate stability. Furthermore, there is a need for adjustments to the legal framework for the Riksbank. The membership of the General Council also includes contributing to certain activities of the ECB, prior to decisions on such issues taken by the Governing Council of the ECB. Furthermore, representatives of the Riksbank take part in the ESCB committees whenever they perform duties on behalf of the General Council, as well as in a number of working groups set up by these committees. All in all, the Riksbank participates in around 50 committees and groups within the ESCB.
 

Priority issues

Rational regulatory framework

The common regulatory framework for central banks shall be rational from an overall perspective, whether it applies to the Riksbank in its current situation or as a possible future member of the Eurosystem. 

Financial crisis management

Parallel to the work conducted in EU committees in Brussels, central banks should develop well-functioning coordination mechanisms for measures to be taken in conjunction with the management of financial crises.
 

Division of responsibilities in the ESCB

The division of responsibilities laid down in the ESCB Statute shall be implemented in a way that allows central banks in member states outside the euro area to exercise influence on decisions that affect them.

Preparations for enhanced macro-prudential analysis

In the European Systemic Risk Board (ESRB) to be set up in the EU with a key role for central banks, monitoring of risks to the stability of the financial system shall be performed with a high degree of transparency, and the ESRB should have at its disposal sufficient instruments to allow recommendations and warnings to take hold and have intended effects.
 

True and fair assessment of Sweden

The ECB’s assessment of the Swedish economy and conditions in Sweden at large shall be true and fair. In the context of the ECB’s examinations 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.