Sweden is 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 governor takes part in informal ECOFIN meetings when the finance ministers meet twice a year with the central bank governors of the EU countries. While not taking direct part in the formal decision-making by the finance ministers in the ECOFIN Councilthe Riksbank is represented by a deputy governor in the Economic and Financial Committee (EFC), which gives advice to the Council and the European Commission on coordination of economic policies and on financial regulations for the EU internal market. On occasions of entry of new currencies and setting of central rates in ERM II, the Riksbank takes part in the EFC preparations, albeit not being involved in actual decisions on rates as long as the krona is not participating in the exchange rate mechanism. 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. Conversely, in the field of monetary, financial and balance-of-payments statistics, the Riksbank is involved in Eurostat committees and working groups. 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 with representatives from the financial supervisory authorities and central banks in the EU. Such representation will continue also when further measures to strengthen the institutional prudential framework concerning financial activities will be finally enacted. There are similar committees to the CEBS for insurance and securities, but the Riksbank does not participate in those.
Financial regulation, supervision and crisis management in Europe
The Riksbank attaches great importance inter alia to the creation of effective forms at the EU level for the management of financial crises with cross-border repercussions. The Riksbank also supports national initiatives to strengthen co-operation between national authorities in order to improve the regular monitoring of cross-border financial and management of acute crises. And the Riksbank welcomes further financial integration in the EU and supports and supports a number of initiatives to establish a harmonised financial regulatory framework.
The Stability and Growth Pact
The Riksbank favours a clear regulatory framework that will contribute to a sustainable development of public finances in the member states. The framework shall be applied in a consistent manner to forestall imbalances in public finances and, in the event of deviations, restore the development to a more balanced path.
True and fair assessment of Sweden
The Commission’s assessment of the Swedish economy and the situation in Sweden at large shall be true and fair. In the context of the assessments of the prescribed conditions 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 crucial aspects of the convergence assessment concerning Sweden.
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