MADRID – The European Fee has launched an infringement process towards Spain for granting the federal government sweeping powers to dam financial institution mergers, a transfer Brussels says violates EU legislation.
The transfer follows the federal government of Prime Minister Pedro Sánchez’s resolution to halt a proposed takeover of Banco Sabadell by BBVA and Banco Sabadell for 3 years.
With €719.45 billion in belongings, BBVA is Spain’s second-largest financial institution whereas Banco Sabadell ranks fourth, with €244.42 billion.
In a proper letter despatched to Madrid, the Fee stated the authorized framework used to dam the proposed merger breaches core EU guidelines on the liberty of firm and motion of capital.
The Spanish authorities now have two months to reply. If the reply is deemed unsatisfactory, the Fee might escalate the case by issuing a reasoned opinion, Euractiv’s associate Servimedia reported.
The EU government additionally criticised Sánchez authorities for overruling the Spanish Competitors Authority (CNMC), which had conditionally permitted the bid.
EU sources cited by Spanish media say a 2014 banking legislation and its 2015 implementing decree give the financial system ministry extreme discretionary energy over banking operations – an space that falls beneath the unique competence of the European Central Financial institution.
In accordance with the Fee, this undermines EU monetary regulation and authorized certainty for cross-border banking offers.
(cs, de)
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