FRANKFURT (dpa-AFX) – ECB Vice President Luis de Guindos criticizes the federal government for its resistance to a possible Commerzbank takeover by UniCredit. The biggest problem with such national statements is that they undermine the credibility of the savings and investment union in Europe, de Guindos told the Financial Times (FT) in response to a question.
“It is very difficult for governments to argue that they are in favor of the savings and investment union if they then say: Well, no, we are against this specific transaction,” said the ECB deputy when asked what he thought of the federal government’s resistance to a takeover of Commerzbank by Unicredit. This doesn’t just apply to this specific example, but happens everywhere. “Governments have a very similar tendency to interfere in private transactions.” Such steps would contradict the spirit of a European internal market.
The European capital markets are fragmented compared to the USA. With the Savings and Investment Union, the EU wants to deepen and grow together the capital markets – for example so that companies can finance themselves better and so that more investors can invest in the local financial markets.
Federal government opposes Unicredit
The Italian Unicredit wants to take over Commerzbank and recently submitted a voluntary offer to increase its stake to more than 30 percent. Commerzbank sees Unicredit’s actions as hostile, insists on its independence and receives support from the federal government. The federal government saved Commerzbank with tax money during the global financial crisis and still holds around twelve percent of the shares.
Only recently did the federal government sharply criticize the offer for Commerzbank. Unicredit’s actions were “completely inappropriate and unfair,” said deputy government spokesman Sebastian Hille in Berlin.
In an interview with the “FT”, de Guindos described the German banking market as “very fragmented”. He spoke out in favor of cross-border takeovers. “A real major European bank could compete with the American ones. Valuations could be significantly higher and cheaper financing would also be possible. The banks would be more diversified,” said de Guindos, whose term expires at the end of May and who will be succeeded by Croatian Boris Vujcic.
De Guindos’ statements are explosive because it is unusual for the ECB to officially comment on specific banks or takeover disputes – especially not from such a high-ranking source. The ECB banking regulator, which controls the largest financial institutions in the euro area, routinely checks investors who want to own ten percent or more of a bank to ensure that they are suitable shareholders./als/DP/jha
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