European Commission Threatens Legal Action Against Spanish Government Over BBVA-Sabadell Merger
Amid international scrutiny, the European Commission asserts its stance on the proposed €15 billion merger between BBVA and Banco Sabadell.
The European Commission is prepared to take legal action against the Spanish government if it attempts to arbitrarily block the proposed €15 billion takeover of Banco Sabadell by BBVA.
European Financial Services Commissioner, Maura Lus Albuquerque, made this clear in Madrid on Monday, emphasizing that larger banks are necessary within the European Union.
This warning follows the Spanish government’s plans to modify the approval process from the National Commission of Markets and Competition (CNMC) and the European Central Bank.
Sources within the Commission indicated that should the Spanish Economy Minister Carlos Cuerpo proceed with his plans, the Commission would have no hesitation in seeking intervention from the European Court of Justice.
The Commission has been in discussions with Spanish authorities regarding this matter since December, making the current firm position well-known.
The stance of the Commission on this issue is not solely represented by Commissioner Albuquerque but reflects consensus across the European Commission, including concern from President Ursula von der Leyen regarding similar moves against banking mergers in Germany, Italy, and Spain.
These actions are viewed as potentially obstructing the necessary consolidation of European banks, a process the Commission deems essential for enhancing the competitiveness of the sector, provided that it does not harm competition.
In a closed-door meeting, Albuquerque conveyed to Cuerpo that larger banks in the EU could provide better services at lower costs, reinforcing the arguments of BBVA’s CEO, Carlos Torres, who has advocated for the merger as aligned with the goals of European Banking Union.
This long-standing aspiration is seen to clash with national barriers to banking mergers, which the Commission argues contradicts the objective of operating within a single European market.
The CNMC president, Cani Fernández, recently responded to the ongoing discussions with a hint of irony, questioning whether it was time for competition authorities to assess not just national markets but the European landscape, especially for fostering larger community banking groups.
The Spanish government has supported the creation of national champions in sectors like telecommunications, but has been hesitant in the banking sector.
As these developments unfold, the European Commission has expressed its firm position regarding the BBVA takeover of Sabadell, stating, 'We are not aware of any reason that would justify rejecting or blocking the operation.' The Commission expects the Spanish government to align its decisions with those of competent authorities and is currently reviewing the compatibility of the government's initiatives with European law.
With several major global funds closely watching, Brussels has made its stance clear.
European Financial Services Commissioner, Maura Lus Albuquerque, made this clear in Madrid on Monday, emphasizing that larger banks are necessary within the European Union.
This warning follows the Spanish government’s plans to modify the approval process from the National Commission of Markets and Competition (CNMC) and the European Central Bank.
Sources within the Commission indicated that should the Spanish Economy Minister Carlos Cuerpo proceed with his plans, the Commission would have no hesitation in seeking intervention from the European Court of Justice.
The Commission has been in discussions with Spanish authorities regarding this matter since December, making the current firm position well-known.
The stance of the Commission on this issue is not solely represented by Commissioner Albuquerque but reflects consensus across the European Commission, including concern from President Ursula von der Leyen regarding similar moves against banking mergers in Germany, Italy, and Spain.
These actions are viewed as potentially obstructing the necessary consolidation of European banks, a process the Commission deems essential for enhancing the competitiveness of the sector, provided that it does not harm competition.
In a closed-door meeting, Albuquerque conveyed to Cuerpo that larger banks in the EU could provide better services at lower costs, reinforcing the arguments of BBVA’s CEO, Carlos Torres, who has advocated for the merger as aligned with the goals of European Banking Union.
This long-standing aspiration is seen to clash with national barriers to banking mergers, which the Commission argues contradicts the objective of operating within a single European market.
The CNMC president, Cani Fernández, recently responded to the ongoing discussions with a hint of irony, questioning whether it was time for competition authorities to assess not just national markets but the European landscape, especially for fostering larger community banking groups.
The Spanish government has supported the creation of national champions in sectors like telecommunications, but has been hesitant in the banking sector.
As these developments unfold, the European Commission has expressed its firm position regarding the BBVA takeover of Sabadell, stating, 'We are not aware of any reason that would justify rejecting or blocking the operation.' The Commission expects the Spanish government to align its decisions with those of competent authorities and is currently reviewing the compatibility of the government's initiatives with European law.
With several major global funds closely watching, Brussels has made its stance clear.
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Translated by AI
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