Sweden unfazed about staying outside EU banking union

(STOCKHOLM) - Swedish Finance Minister Anders Borg on Tuesday warned that Sweden could stay outside a planned EU bank union, saying it would have only a limited financial impact on the country.

"Our point of view is that Sweden can stay outside (this union) without it having any decisive consequences for Sweden's financial system, household borrowing costs or companies' access to financing," Borg was quoted by news agency TT as telling reporters on the sidelines of a parliament briefing.

At a Brussels summit on Thursday and Friday, European leaders will try to overcome their differences and establish a joint bank supervisor, the first stage of strengthening financial oversight in the troubled eurozone.

"At the end of the day, it's about whether or not the rules governing the European Banking Authority (EBA) will mean that countries outside the eurozone will be dominated by those in it,"

In addition to concerns by non-eurozone countries that they will be sidelined in decision-making, there are also disagreements about how much of the day-to-day banking supervision will rest with the European Central Bank and how much under national regulators which have until now been loosely coordinated by the EBA.

In September, Borg described a European Commission proposal to put all European banks under the supervision of the ECB as "completely unacceptable".

"If we're forced into a situation where we don't agree, we won't vote yes. But it would naturally be advantageous for Sweden and for Europe if we can find a compromise," Borg on Tuesday told the website of Riksdag & Departement, a magazine published by the Swedish parliament.