The minister of Economy, Carlos Body, defended that the European banking union, with large enough banks to be competitive, is compatible with «protecting a diversified financial sector, where there are also national or smaller entities.»
In an interview with «La Vanguardia» collected by Europa Press on Sunday, he argued that the government proposes conditions for BBVA’s takeover of Banco Sabadell to protect general interests during the transition towards a more competitive European financial sector.
«We do not lose some of the comparative advantages we have now, especially in Spain, with banks, with a larger footprint and higher proximity» to regional and local clients,» he said.
Not intending to hinder it
He denied that the approved measures aim to avoid the operation and expressed confidence that they will be met to fulfill all conditions, «because it is also in the bank’s interest to limit itself to 3 years and not extend to 5.»
Regarding BBVA’s ability to appoint new directors of Sabadell, if the operation is completed, he said that the new ones must «continue to ensure the interest of their entity and maximize Banco Sabadell.»
Regarding the possibility of relocating Sabadell’s headquarters to Bilbao, he recalled that Banco Catalán had just returned to Catalonia: «That is what we expect in this sense: continuity in the bank’s policy.»
«We are very cautious about the stage of the process we are in. We are now talking about the purchase, we have not entered into discussions about a merger,» he said.
«We are following the guidelines that our regulations allow us, which are also compatible with Europe,» the government’s conditions have assured.
Regarding BBVA resorting to the courts, he defended the government’s ability to impose conditions that protect the general interest «different from competition.»
For him, these conditions can be interpreted as conditions of flexibility or reinforcement, «but they are different objectives from competition.»
Trump’s tariffs
Likewise, the minister spoke about possible reprisals from the United States government against Spain on tariffs: he dispensed while negotiating with them, but assured Spanish companies and producers that «Spain and the EU will be there to defend their interests.»
He believes that the attitude in negotiations must be prudent and open to protect the commercial relationship, which he defines as the most important in the world, because «there are 4.6 billion euros that cross the Atlantic daily.»
Therefore, he believes that Spain will support a solution to advance and even integrate more, but Europe «has the necessary tools if a correct and balanced agreement is not reached to defend its interests.»
His candidacy for Eurogroup
The minister is aware of the difficulty of his candidacy to preside over the Eurogroup (the Eurozone Finance Forum) against the possible election of Irishman Paschal Donohoe, but considers it possible: «I would not have formalized the candidacy if I had not perceived it.»
He believes that the Eurogroup «must have a larger role» in making the European political agenda more agile and ambitious before the geopolitical scenario and that Spain wants to maximize this role, to accelerate progress in defining growth areas, strengthening social assistance, and integrating the eurozone.
Seville Conference
At the International Development Conference starting on Monday in Seville, Spain will propose a platform for exchanging experiences in exchanges: «It is the ability that creditors have, in this case, bilaterally, to forgive debts in exchange for an investment.»
«We want to promote the development and growth of these countries in the long term,» he explained.
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