Britain, with its large and influential banking sector, has found fault with the plan as well. It fears that the euro-zone states would vote as a bloc to pass rules in their favor. To earn its support of the banking union, the EU Committee of Britain’s upper house of parliament stated in a report that certain safeguards, including a different system of voting, would have to be adopted to protect its banking sector. London has asked that countries outside the single currency be allowed to jointly block certain decisions made by the ECB. However, the euro zone is opposed.
Sweden holds a similar position to Great Britain. Finance Minister Anders Borg has said that the country is unlikely to join the union, but may back the plan if pan-EU voting safeguards are implemented.
While the views of the European Union’s member states are varied, Cyprus, the current holder of the rotating EU presidency, has prepared a compromise proposal. According to the document, seen by Reuters, it recommended that “banks with assets of 30 billion euros or with assets larger than one fifth of their country’s economic output be supervised directly by the ECB rather than national supervisors.” Banks with subsidiaries in at least two other states in the banking union would also be included.
While all 27 EU states must vote in favor of the plan, only countries in the euro zone will fall under the banking union in the beginning.