Brussels launches legal action against Spain over bank merger powers
The move follows the government of Prime Minister Pedro Sánchez's decision to halt a proposed takeover of Banco Sabadell by BBVA and Banco Sabadell for three years.
With €719.45 billion in assets, BBVA is Spain's second-largest bank while Banco Sabadell ranks fourth, with €244.42 billion.
In a formal letter sent to Madrid, the Commission said the legal framework used to block the proposed merger breaches core EU rules on the freedom of establishment and movement of capital.
The Spanish authorities now have two months to respond. If the reply is deemed unsatisfactory, the Commission may escalate the case by issuing a reasoned opinion, Euractiv's partner Servimedia reported.
The EU executive also criticised Sánchez government for overruling the Spanish Competition Authority (CNMC), which had conditionally approved the bid.
EU sources cited by Spanish media say a 2014 banking law and its 2015 implementing decree give the economy ministry excessive discretionary power over banking operations – an area that falls under the exclusive competence of the European Central Bank.
According to the Commission, this undermines EU financial regulation and legal certainty for cross-border banking deals.
(cs, de)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euractiv
19 minutes ago
- Euractiv
In EU first, Germany to allow Taliban officials to work at Afghan missions
BERLIN – Germany has become the first EU country to allow Afghanistan's Taliban regime to send officials to Germany to assist with the deportation of Afghan nationals. This move follows a push from Interior Minister Alexander Dobrindt for direct talks with the radical Islamist Taliban to facilitate regular deportations of rejected asylum seekers and convicted offenders to Afghanistan. Such flights had been largely halted due to diplomatic and human rights concerns after the militia toppled the Western-backed government in 2021. But Germany resumed deportations to Afghanistan on Friday – only the second such flight since 2021. As part of this arrangement, mediated by Qatar, the German government has approved the deployment of two Afghan consular officers to Germany, it confirmed on Monday. The officials would "support further planned deportation flights", said government spokesperson Stefan Kornelius. Berlin has insisted that this did not constitute recognition of the Taliban, according to the Frankfurter Allgemeine Zeitung (FAZ), which first reported the decision on Friday. Russia is currently the only country to have officially recognised the Taliban as Afghanistan's legitimate government, following an announcement three weeks ago. Still, Germany's decision marks a significant policy shift, as the newly elected government has pledged to crack down on illegal migration after a series of violent attacks linked to rejected asylum-seekers earlier this year. It also led a group of EU interior ministers, who called for regular deportations to Afghanistan and Syria at a dedicated migration summit on Friday. Norway, a non-EU member, is so far the only European country to have accepted an acting Taliban envoy, however. Germany maintains no formal diplomatic ties with the Taliban, with the German government saying there was only strictly technical cooperation on a regular basis. The two Afghan officials have previously worked for the Western-backed government and had no known history of extremism, according to the FAZ . They could arrive "soon" and would be based at the Afghan embassy in Berlin and the consulate in Bonn, without holding formal diplomatic rank. (aw)
Euractiv
2 hours ago
- Euractiv
Budapest claims deal with Belgrade, Moscow on new pipeline for Russian oil
Hungarian Foreign Minister Péter Szijjártó has announced an agreement with 'Serbian and Russian colleagues' to build a new oil pipeline between Serbia and Hungary, aimed at consolidating imports of Russian crude oil – just as the EU moves to finally freeze the Kremlin out of its energy market. In a typically provocative social media post on Monday, Szijjártó blamed the EU's ongoing efforts to prohibit Russian fossil fuel imports for driving up energy prices to 'several times' those in other parts of the world. 'And this is no wonder, given Brussels is forcibly dismantling energy ties, banning Russian energy sources and blocking supply routes,' Szijjártó wrote on social media. The move comes as the EU actively seeks to close off the remaining imports of Russian gas – flows that, although substantially reduced since the full-scale invasion of Ukraine in 2022, still provide considerable revenue for the Kremlin's unprovoked war against its smaller neighbor. Legislators are currently negotiating a proposal to ban imports of Russian gas completely by 2027. The European Parliament's lead negotiator is also pushing to extend the prohibition to pipeline oil, while also bringing forward the deadline. The announcement from Budapest came after a video conference between Szijjártó, Russian Deputy Energy Minister Pavel Sorokin, and Serbian Energy Minister Dubravka Đedović, the state-controlled news agency MTI reported. The proposed pipeline could be operational as early as 2027, MTI reported, although few details were provided about the nature of the agreement with Moscow and Belgrade. In a video clip included in the report, Szijjártó – whose government, led by Prime Minister Viktor Orbán, has long made capping domestic energy bills a key element in election campaigning – reiterated his criticism of EU energy policy. 'We will not allow this,' Szijjártó said. 'We will build pipelines and open up new sources of supply, and so maintain Europe's lowest energy bills for the Hungarian people.' According to recent statistics, Hungarian households have the lowest gas bills in the EU at €3.20 per 100 kWh compared to €16.71 in the Netherlands and €18.93 in Sweden. Hungary and neighbouring Slovakia have repeatedly obstructed EU attempts to impose economic sanctions on Russian oil and gas, where unanimity among all 27 EU member states is required. However, the REPowerEU package currently under negotiation between governments and the European Parliament would require only a qualified majority to pass into law. (aw)
Euractiv
5 hours ago
- Euractiv
Elon Musk's X refuses to comply with French investigation, calls probe politically motivated
Elon Musk's platform X has said it will not comply with the demands of French authorities in relation to an ongoing investigation announced last week by the Paris public prosecutor, according to a statement published on Monday. On 11 July, the Paris prosecutor's office stated that the investigation targets the platform X, a legal entity associated with it, and several individuals, though it did not disclose the names of those involved, according to a press release issued by prosecutor Laure Beccuau. The preliminary investigation was launched earlier this year amid suspicions of foreign interference. Musk and other senior figures at X leaders are suspected of deliberately disrupting data processing and engaging in fraudulent data extraction "as part of organised crime", as previously reported by Euractiv. However, X announced on Monday that it would not comply with the demands of the authorities "as we have a legal right to do so", according to a statement posted on the platform. X described the investigation as "politically motivated" and denied all allegations. 'X believes that this investigation is distorting French law in order to serve a political agenda, and ultimately restrict free speech,' the statement read, without elaborating on what that agenda might be. The platform further criticised those involved in the investigation, including individuals who requested access to its recommendation system. It implied that the investigation lacked impartiality and expressed 'serious concerns' about the process. French authorities are pursuing two probes into the platform. Should those under investigation be found guilty, they could face up to 10 years in prison and a €300,000 fine, according to the French penal code. Separately, the Commission met with representatives of X last week, following reports that its chatbot, Grok, was spreading hate speech and antisemitic content. However, it remains unclear whether this meeting will lead to a further investigation under the Commission's ongoing probe into X's compliance with the EU's Digital Services Act (DSA). (aw)
