Opinion of the European Central Bank of 12 December 2005 at the request of the Swedish Parliament on a draft law amending the Sveriges Riksbank Act by introducing certain provisions from the State Budget Act (CON/2005/54)
Date: 2005-12-12
Institutions: European Central Bank
Subjects: Sweden, central bank, competence of the institution, financial autonomy, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 12 December 2005 

at the request of the Swedish Parliament  

on a draft law amending the Sveriges Riksbank Act by introducing certain provisions from the 

State Budget Act 

(CON/2005/54) 

1. 

On 12 September 2005 the European Central Bank (ECB) received a request from Sveriges riksdag 

(the  Swedish  Parliament,  hereinafter  the  ‘Riksdag’)  for  an  opinion  on  a  draft  law  amending  the 

Sveriges Riksbank Act (1988:1385) (hereinafter the ‘draft law’).  

2. 

The ECB’s competence to deliver an opinion is based on the third indent of Article 2(1) of Council 

Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions1, as the draft law contains provisions concerning 

the Swedish national central bank (NCB). In accordance with the first sentence of Article 17.5 of 

the  Rules  of  Procedure  of  the  European  Central  Bank,  the  Governing  Council  has  adopted  this 

opinion. 

3. 

The draft law is one of several legislative proposals which aim to introduce certain provisions from 

the  State  Budget  Act  (1996:1059)  into  the  legislation  governing  authorities  under  the  Riksdag’s 

authority. This opinion only concerns the draft law amending the Sveriges Riksbank Act and the 

ECB is not commenting on the other legislative proposals. 

4. 

The  ECB  welcomes  the  fact  that  the  draft  law’s  proposed  amendments  to  the  Sveriges  Riksbank 

Act  (hereinafter  the  ‘Riksbank  Act’)  aim  to  ensure  good  economic  and  budgetary  administration 

within  Sveriges  Riksbank.  The  draft  law  contains  certain  elements  which  need  to  be  carefully 

considered against the requirements of central bank independence, as laid down in Article 108 of 

the  Treaty  establishing  the  European  Community  and  Article  7  of  the  Statute  of  the  European 

System of Central Banks and of the European Central Bank. It is recalled that Article 108 of the 

Treaty also applies to the NCBs of the Member States that have not yet adopted the euro and that 

the European Monetary Institute (EMI) established a list of features of central bank independence 

in  1997  (including  institutional,  personal  and  financial  independence),  which  were  subsequently 
affirmed by the ECB2. 

1  
2  

OJ L 189, 3.7.1998, p. 42. 
The  concept  of  central  bank  independence  has  been  described  in  detail  in  the  EMI’s,  and  subsequently  the  ECB’s 
Convergence  Reports  (all  available  on  the  ECB’s  website  at  www.ecb.int).  See,  for  example:  European  Monetary 

 
 
 
                                                 
5. 

Under  the  draft  law’s  proposal  to  amend  Article  2  of  Chapter  8  of  the  Riksbank  Act,  Sveriges 

Riksbank  must  obtain  the  Riksdag’s  consent  prior  to  acquiring  shares  in  companies  and  limited 

partnerships and similar rights, or assuming obligations linked to such rights, if the acquisition or 

assumption  of  obligations  does  not  fall  within  Sveriges  Riksbank’s  tasks  as  a  central  bank.  The 
explanatory memorandum to the draft law states3 that the term ‘tasks as a central bank’ should be 

interpreted narrowly and that in the event of doubt Sveriges Riksbank should request the Riksdag’s 

consent. The ECB is of the view that the wording ‘tasks as a central bank’ must comprise all tasks 

relating to the European System of Central Banks (ESCB) so as to be compatible with Article 108 

of the Treaty. In order to avoid any misunderstanding, the legislative proposal should be clarified 

on this point.  

6. 

Similarly,  the  draft  law  inserts  a  new  Article  2a  into  Chapter  8  of  the  Riksbank  Act,  stating  that 

Sveriges  Riksbank  may  sell  shares  in  companies  and  limited  partnerships  and  similar  rights,  but 

that the Riksdag’s prior consent is required if this sale means that the State’s ownership is reduced 

in companies where the State has at least 50 % of the voting rights or if the sale is of significant 

public economic interest. The ECB notes that this new provision does not refer to ‘tasks as a central 

bank’, which could be interpreted as  meaning that the Riksdag’s consent in  accordance with this 

provision would be needed for sales both within and outside the scope of Sveriges Riksbank’s tasks 

as a central bank. Accordingly, a provision similar to the one in Article 2 of Chapter 8 excluding 

ESCB-related tasks from the application of the requirement for the Riksdag’s prior consent should 

therefore be inserted in the new Article 2a in Chapter 8 of the Riksbank Act as well. Moreover, the 

ECB  considers  that  the  formulation  ‘significant  public  economic  interest’  is  too  wide  and  leaves 

excessive room for discretion in its application, which could hamper Sveriges Riksbank’s ability to 

independently  carry  out  its  tasks  as  a  central  bank.  In  view  thereof,  the  proposed  wording of  the 

new Article 2a of Chapter 8 of the Riksbank Act, concerning the obligation on Sveriges Riksbank 

to seek the Riksdag’s consent, would be incompatible with Sveriges Riksbank’s independence and 

Article 108 of the Treaty. 

7. 

The  draft  law’s  amendment  to  Article  4  of  Chapter  8  of  the  Riksbank  Act  states  that  Sveriges 
Riksbank must obtain the Riksdag’s consent prior to acquiring4 or selling real property intended for 

the  activities  conducted  by  Sveriges  Riksbank,  or  in  which  it  takes  part,  if  the  value  exceeds 

SEK 20  million.  The  reasoning  behind  this  provision  is  unclear  and  if  it  is  implemented  as 

presently worded, it could affect Sveriges Riksbank’s institutional and financial independence. An 

NCB’s  overall  independence  is  jeopardised  if  it  cannot  autonomously  avail  itself  of  sufficient 

financial  resources  to  fulfil  its  mandate  (i.e.  to  perform  its  tasks  as  an  NCB).  Imposing  such  an 

obligation  on  Sveriges  Riksbank  could  affect  Sveriges  Riksbank’s  financial  independence,  as  the 

Institute,  ‘Progress  Towards  Convergence  1996’,  pp.  100-103;  European  Monetary  Institute,  ‘Convergence  Report: 
Report required by Article 109j of the Treaty establishing the European Community’, 1998, pp. 291-295; and European 
Central Bank, ‘Convergence Report 2004’, pp. 25-30. 
At Section 11.2. 
Unless the purpose is to protect a monetary claim. 

3  
4  

2 

                                                                                                                                                                           
conduct of its activities would be dependent on a third party’s consent. This would be incompatible 

with Article 108 of the Treaty. The draft law should therefore explicitly state that acquisitions and 

sales  of  real  property  that  Sveriges  Riksbank  makes  in  order  to  independently  fulfil  its  ESCB-

related  tasks  are  excluded  from  the  requirement  to  obtain  the  Riksdag's  prior  consent.  In  this 

connection,  the  ECB  would  also  like  to  draw  attention  to  another  outstanding  matter  relating  to 

financial  independence  requiring  legislative  change,  as  recalled  in  the  ECB’s  Convergence 

Report 2004, namely the need to introduce statutory provisions in Swedish legislation concerning 

the distribution of Sveriges Riksbank’s profits5. 

8. 

The  ECB  welcomes  the  draft  law’s  proposed  amendment  to  Article  3  of  Chapter  10  of  the 

Riksbank Act, whereby Sveriges Riksbank undertakes to apply sound accounting principles to the 

obligation  to  keep  accounts,  thereby  applying  relevant  provisions  of  Guideline  ECB/2002/10  of 

5 December  2002 on the legal framework for accounting and financial reporting in the European 
System  of  Central  Banks6.  In  this  connection,  the  ECB  would  also  like  to  mention  the  statistical 

reporting requirements contained in Regulation ECB/2001/13 of 22 November 2001 concerning the 

consolidated  balance  sheet  of  the  monetary  financial  institutions  sector7,  which  will  apply  to 

Sveriges  Riksbank  as  a  monetary  financial  institution  and  a  member  of  the  Eurosystem  upon 

Sweden’s adoption of the euro. 

9. 

The new Article 5 of Chapter 10 of the Riksbank Act provides that Sveriges Riksbank will report 

annually  to  the  Riksdag  with  regard  to  measures  it  has  taken  or  intends  to  take  in  the  light  of 

comments received from the Swedish National Audit Office. An express statutory obligation for an 

NCB  to  consult  third  parties  ex  ante  with  regard  to  its  ESCB-related  tasks  provides  such  third 

parties with a formal mechanism to influence the final decision, and is therefore incompatible with 

the Treaty and the Statute. The ECB therefore emphasises that the reporting requirement in the new 

Article 5 of Chapter 10 of the Riksbank Act must be for information purposes only and must not 

imply an obligation to consult the Riksdag ex ante.  

10.  This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 12 December 2005. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

5  
6  
7  

European Central Bank, Convergence Report 2004, p. 236. 
OJ L 58, 3.3.2003, p. 1. 
OJ L 333, 17.12.2001, p. 1. Regulation as last amended by Regulation ECB/2004/21 (OJ L 371, 18.12.2004, p. 42). 

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