Several high-ranking EU officials sharply criticized the German government for rejecting a merger between Commerzbank and UniCredit. Yannis Stournaras, Governor of the Bank of Greece, described the approach as inconsistent with the goals of the EU: "Cross-border mergers should be viewed not as a political, but as a technical issue. Whether it is a German or an Italian bank should not matter – what is crucial is that it is a strong European bank.
The criticism follows Chancellor Olaf Scholz's decision to oppose UniCredit's takeover plans after the Italian bank announced its intention to increase its stake in Commerzbank from 9 to 21 percent – subject to regulatory approval.
A few days earlier, the German government had stopped the sale of further shares in Commerzbank after selling 4.5 percent in an after-hours block trade to UniCredit. Following this transaction, the German state still holds 12 percent of the shares in Commerzbank.
Hostile takeovers are not good for banks, and that's why the German government has taken a clear stance," said Scholz. Finance Minister Christian Lindner shared similar concerns with Italy's Finance Ministry and warned against a hostile takeover.
The Translating heading is: "However, Berlin's opposing stance contradicts the stated goals of the Capital Markets Union and stronger integration of the European banking sector, as voices from Brussels and other EU capitals emphasize. A former EU commissioner, speaking anonymously with the Financial Times, described the German position as 'contradictory': 'It is difficult to argue against a merger if the federal government seriously wants to promote European integration and the banking union.'
Stournaras also pointed out the weaknesses of the fragmented European banking sector, which stops at national borders and therefore falls behind in competition with US banks. "We need European banking champions that can compete with their American counterparts. For this, cross-border consolidation is essential," he stated. The recent involvement of UniCredit in the Greek Alpha Bank has been "positively received from all sides.
The rejection of the UniCredit deal in Germany is viewed as inconsistent in Italy and Brussels. An Italian cabinet minister accused Berlin of "hypocrisy," pointing out that the German government had recently approved Lufthansa's takeover of the ailing Italian airline Ita Airways (formerly Alitalia). "Germany has always presented itself as pro-EU and preached the Banking Union. But as soon as Commerzbank becomes the target of an Italian competitor, it is suddenly labeled a hostile act," criticized the minister.
Even in Brussels, Berlin's stance is met with incomprehension.
“A few days after the Draghi report and the launch of a new initiative for capital market integration, Berlin is heading in the opposite direction, effectively torpedoing everything,” said an EU diplomat.
Even in Germany, there are voices questioning the stance of the federal government. Stefan Kooths, head of economic research at the Kiel Institute for the World Economy, criticized that political actors in Germany apparently do not have a sufficient understanding of the principles of the internal market and the capital markets union. 'Companies do not have passports,' he said, emphasizing that only bank supervisors and competition authorities are entitled to object to a takeover.
This debate unfortunately shows that we do not really apply the rules of the internal market in the EU as they were originally intended," Kooths added.
