EU scales up pressure against national barriers in finance

THE European Union’s (EU’s) executive arm warned of new infringement cases coming against member states that are blocking banking mergers as the bloc rushes to reduce national barriers so money can flow more effectively into investments in digital, green and defence.

The European Commission “will be addressing all the issues that are blocking cross-border provision of services, mergers” and other obstacles present in many member states, the EU’s financial services chief Maria Luis Albuquerque told reporters in Luxembourg on the sidelines of the EU finance ministers meeting.

“All decisions out there that prevent the creation of the single market on financial services are naturally a matter of concern,” she said. Her warning follow the commission’s recent launch of a case against Spain for hindering BBVA’s 13 billion euro ($19.6 billion) bid for rival Banco Sabadell.

The commission is also set to launch a case against Italy over its so-called “golden power” legislation that safeguards the national interest in strategic sectors after the country’s second-biggest bank UniCredit withdrew its bid for smaller rival Banco BPM last summer, Reuters previously reported.

“I am not commenting on decisions not taken,” she replied asked about the Italian case, but insisted that “we will use enforcement of common rules that have been agreed by everyone, and if they’re not complied with, it is our role to make sure that they are”.

The commission has also grown frustrated with the use of financial regulation to project national champions in some member states, and Albuquerque recently warned of more enforcement in that area.