Body personally conveys to the ECB its “concerns” about BBVA’s hostile takeover bid for Sabadell.
Minister of Economy, Carlos Bodiepersonally handed over to the European Central Bank (ECB) his “worry” due to the hostile takeover bid that BBVA made against Sabadell for its “harmful effect” at competitions in Spain.
Before the start of the Eurogroup meeting, which will take place this Monday in Brussels, the Corps met with the head of banking supervision of the ECB Claudia Buchto communicate your concerns about an operation that you believe will lead to excessive levels of concentration in Spain.
“I told you about the concerns that I have already expressed Regarding the impact in terms of concentration and therefore the possible harmful impact from a competitive point of view that this operation could have,” the Minister of Economy said in statements to the press.
(Why is the government rejecting BBVA’s takeover bid for Sabadell and what weapons does it have to stop it)
What was the response from the head of the Single Supervisory Mechanism? “I think she I was curious to know what our arguments were.“, answered the Corps.
“We had a very casual conversation about situation of competition and concentration in financial markets in Europe, because this is a problem that is relevant for the entire EU, and not just for Spain,” says the Minister of Economy. In the meeting with Buch, the Corps also defended “the good health of our financial system.”
The Ministry of Economy announced this last week. rejected BBVA’s decision to propose a hostile takeover of Sabadell, both in form and content. The authority believes the operation “has a potentially harmful impact on the Spanish financial system.”
In particular, the Minister of Economy argues that this will mean an increase in the level of concentration, which could negative impact on employment and financial services provision.
In addition, excessive concentration levels may lead to additional potential risk to financial stability. Finally, the Corps argues that the operation will also impact territorial cohesion.
Fourth payment
On the other hand, the Minister of Economy expressed confidence that the European Commission will approve the full disbursement of funds in the coming days. fourth payment worth 10 billion Next Generation fundsas soon as unemployment subsidy reform agreed with trade unions is approved.
The period during which the community leader makes a decision expires May 20but it can be extended for a few more days, waiting for the Council of Ministers to give the green light to the reform.
“We hope to be able to pay the fourth installment in full with all the reforms,” said Corpus, who argues that the reform agreed to by unions and rejected by employers is “balanced.”