* Sweden makes surprise proposal on hedge fund pay

* Swedes say want "level playing field" in finance

* Move follows backlash to earlier Swedish compromise bid

* Hedge funds group says managers paid only for success

By John O'Donnell and Lawrence Fletcher

BRUSSELS/LONDON, Nov 12 (Reuters) - The European Union will consider as soon as this week rules to limit the pay of hedge fund managers, a spokeswoman for the Swedish minister in charge of reaching agreement on the legislation said on Thursday.

The EU is scrutinising a raft of new regulations for hedge funds and others that include imposing tough borrowing limits, which the industry has warned could force it into exile.

But so far the industry, which in Europe is concentrated in London's upmarket west end, has avoided any clampdown on pay despite an international consensus that remuneration for bankers should be controlled.