The architect of a widely respected plan that solved Sweden’s banking crisis in the 1990s has said the European Union must implement a Europe-wide general guarantee for the banking system or risk tipping the region from recession into depression.

Urban Bäckström, director general at the Confederation of Swedish Enterprise, former governor of the central bank and former state secretary in the finance ministry, will make the call at the BusinessEurope council of presidents meeting in Paris on Friday.