When questioned on Friday over German opposition to UniCredit’s plans to acquire Commerzbank, the EU Commissioner for Financial Services bemoaned barriers to the establishment of bigger European banks.
Following a massive uproar in Germany over its acquisition of a roughly 30% interest in Commerzbank, UniCredit’s takeover plans came to a standstill.
In a televised interview with Italy’s RaiNews24, Maria Luis Albuquerque stated, “I think that actually not facilitating what could be the emergence of European banks at the scale and the level we need to compete with our real competitors is always a shame.”
“We have issues with the use of powers that should not be used,” she stated.
During her two-day visit to Italy, where she met with Economy Minister Giancarlo Giorgetti and central bank Governor Fabio Panetta, Albuquerque also reaffirmed EU concerns about Italy’s use of its “golden power” laws, which are designed to safeguard national interests in key industries, to review bank mergers.
This Monday, Italian Prime Minister Giorgia Meloni stated that EU members must maintain exclusive jurisdiction over areas of national security.
GOLDEN POWERS
Regarding a story that the EU Commission was getting ready to take action against Italy’s golden power law, Albuquerque chose not to comment. Nonetheless, she stated that major merger agreements have to be examined at the EU level.
“If there is in any member state any … situation where other entities would be interfering, that would potentially be in breach of the European rules, and we would have to do something about it, because that is our obligation,” she stated.
UniCredit dropped a takeover proposal for Banco BPM in July, citing government-imposed requirements as the reason.
This month, the Commission could compel Italy to remove its conditions and challenge the entire golden power legislation in a separate infringement case.
The European College of Commissioners may decide on the issue between November 12 and 13.
Rome is collaborating with the EU and Italian officials to amend the law and circumvent the infringement process.
Italy may potentially file a challenge in an EU court against the decision to change the terms of the BPM agreement.
