Wires

Sweden keeps tough stance on EU bank package

STOCKHOLM, Oct 9 (Reuters) - Little has been done to meetsome European Union members' objections to a planned bank union,Swedish Finance Minister Anders Borg, who has criticised theplan, was quoted as saying on Tuesday.

Sweden is outside the euro zone, but its banks are active ineuro zone countries Estonia and Finland. Borg, well respectedthroughout Europe due to his country's strong finances, has saidhe wants to make sure that rules will not be applied to Swedishbanks by a regulatory body where Sweden has no say.

Going into a finance ministers' meeting in Luxembourg wherethe bank plans were to be discussed, Borg saw little reason tochange his negative view.

"There has been very little progress (since the EuropeanCommission presented the proposal)," Borg was quoted by newsagency TT as telling Swedish reporters ahead of a European Unionfinance ministers meeting in Luxembourg.

"There are no substantial changes regarding the items wehave stressed. We are far from a compromise," he added.

The meeting was due to discuss the bank package, which wasagreed by euro zone countries in June.

A key goal is to establish a single bank supervisor by nextyear, the first step towards creating a banking union across the17 euro zone countries.

Borg expressed concern the banking union would contribute tosplitting euro zone states from other EU members. He also wantsto ensure Swedish taxpayers will not have to bail out othercountries' financial institutions.

He said the draft rules meant all European banks would beunder regulations set by the euro countries alone. " ... andthat is not going to happen," TT quoted him as saying.

"The Commission clearly hasn't listened to 27 countries whenthey made this proposal," he said.

(Reporting by Anna Ringstrom; Editing by Elaine Hardcastle)

((anna.ringstrom@thomsonreuters.com)(+46 8 700 1134)(ReutersMessaging:anna.ringstrom.thomsonreuters.com@thomsonreuters.com))

Keywords: SWEDEN EU/