UniCredit-Commerzbank, de Guindos (ECB): 'Berlin's stop undermines the single market'
On Unicredit-Commerzbank: 'Our recommendation is to consider the eurozone as a single jurisdiction with free movement of capital and equity'
"It is very difficult for governments to claim that they are in favour of the Savings and Investment Union and then say: 'Well no, we are against this particular operation'".
This was said by ECB Vice-President Luis de Guindos in an interview with the Financial Times in which he emphasised that "the main problem with these kinds of national messages is that they undermine the credibility of the savings and investment union". A clear reference to the German authorities' opposition to UniCredit's takeover of Commerzbank.
"Governments are very similar in their temptation to intervene in private operations," de Guindos added, "but such moves go against the spirit of the single market.
Asked whether he thought the UniCredit-Commerzbank transaction should go ahead, de Guindos said he thought 'I was quite clear. I would apply the general framework of rules to this case. Our recommendation is to consider the eurozone as a single jurisdiction with free movement of capital and equity and with a common deposit guarantee'.
Asked why he thinks cross-border banking consolidation is a good thing, de Guindos explained that "it is good because there are economies of scale. A truly large European bank could compete with American banks. Valuations could be much higher and cheaper financing would also be possible. Banks would be more diversified'.
