If Sweden is accepted as a member, there would then be a negotiation regarding the Swedish transition process; when membership would occur, what rate the SEK/EUR exchange rate would be fixed at, how long the transition and currency changeover periods would be, etc. To enable a rapid entry process, the Swedish parliament decided back in 1997 that Sweden should maintain the highest possible level of preparedness by continuing technical and practical preparations. The Riksbank has therefore been working together with the financial sector for the past five years on preparing for a possible future membership. This work is led by the SIFS Group (Consultation and Information within the Financial Sector) and the seventh situation report was completed in the autumn and is available for perusal on our website. 4  BIS Review 9/2002  We can conclude that since the euro was introduced as an electronic currency in the euro zone on 1 January 1999, the Swedish financial sector has offered a number of services in euro, e.g. payments, deposit and lending services as well as share trading. However, considerable efforts are still required to prepare the sector for a possible membership. These include extensive work to change over data and accounting systems that are currently set to kronor as the reference currency to euro. This is in order to achieve a properly functioning financial infrastructure in euro from the first day of EMU membership. The most recent situation report describes two transition scenarios; one gradual scenario and one that is termed Big Bang.
The Governors of the Nordic countries have built trust for a long time. This building of trust dates back to the 19th century. Although it is not very widely known, in 1873, Sweden, Denmark and Norway formed a monetary union based on the gold standard. This union was eventually dissolved in 1924. However, I believe that one legacy of the union has been that the Governors of the Nordic Central Banks – adding Iceland and Finland to the group – have continued to meet regularly since then. This tradition of regular meetings has built trust. It has taken some time, but today the trust is there. The Nordic example shows that trust between authorities can be achieved, but that trust takes time to build – so patience is warranted. At the same time, we need to start getting this process going immediately. On a European level, I think that the MoU can enhance crossborder cooperation by increasing harmonisation, regulatory convergence and, not least, by building trust. Consequently, we should continue to fully implement the MoU. We are working on this in the Nordic and Baltic countries and are currently establishing a Nordic-Baltic Voluntary Specific Cooperation Agreement. This may serve as an example and, although it may take some time, I am confident that we can increase trust in Europe as well. BIS Review 118/2009  5  Conclusion In my speech, I have talked about confidence and trust. Confidence is essential for a wellfunctioning financial system.