Spain faces legal action from Brussels over BBVA's takeover of Sabadell Bank's operations.
In a significant development, the European Commission has launched an infringement procedure against Spain due to concerns over the government's excessive discretionary powers in mergers and acquisitions, specifically in the case of the BBVA takeover of Sabadell. This move comes as the Commission believes that these powers violate key EU principles, such as the free movement of capital and the integrity of the single market.
Based in Brussels, Enrique Serbeto, a correspondent for an unspecified news organization, reports that the European Commission argues that the Spanish government's decision to impose conditions like a three-year operational separation between BBVA and Sabadell, potentially extendable to five years, is contrary to several provisions of the Treaty on the Functioning of the European Union, particularly Articles 63 to 66, which relate to the free movement of capital.
The Commission's concern is that these powers undermine the exclusive competences of the European Central Bank and national supervisors under EU banking regulations. Spain has been given two months to respond to these concerns.
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This news is a reminder of the European Commission's commitment to ensuring that EU laws are respected and that market freedoms are not unjustifiably restricted by member states. As the situation unfolds, we will continue to bring you updates on this important story.
- The European Commission's infringement procedure against Spain, triggered by concerns over excessive governmental powers in mergers and acquisitions in the fashion and finance industries, highlights the Commission's dedication to upholding EU principles and safeguarding the single market in business and policy-and-legislation.
- The debate surrounding the Spanish government's imposition of conditions on BBVA's takeover of Sabadell, as reported by Enrique Serbeto, extends to politics, as the Commission argues these conditions violate provisions of the Treaty on the Functioning of the European Union, including articles related to the free movement of capital.
- This news story, covered by a Brussels-based correspondent, underscores the European Central Bank's and national supervisors' exclusive competences under EU banking regulations, as the Commission contends that Spain's powers in this matter undermine these competences.
