The European Commissioner for Financial Services, María Luis Albuquerque, stated this Monday at the Europa Forum in Brussels that "we should see more bank mergers in the near future" as a result of the single banking market.
She stated this at a meeting organized by the Nueva Economía Forum in the EU capital, where she indicated that "with a single supervisor, a single market, and the same rules applied throughout the banking union," the synergies of these cross-border mergers "should be evident".
"If anything, I am surprised they haven't happened sooner", stated the commissioner, who noted that European rules on mergers "are clear" and, in the case of major banks, it is the European Central Bank that must evaluate, from a prudential perspective, whether the merger "is appropriate or not".
The commissioner was cautious when asked about the takeover bid submitted by BBVA to acquire Banco Sabadell, on which the Spanish government must decide this week. Albuquerque stated that the European Commission does not comment on specific transactions and also noted that competition authorities must assess whether it raises any problems or concerns that must be addressed within that framework.
Regarding the adverse economic effects that could be triggered by the geopolitical escalation unleashed by the United States bombing of Iran last weekend and the resulting rise in energy prices —Iran produces 20% of the world's oil and controls a key trade route, the Strait of Hormuz— she asserted that the events "are too recent" to analyze what could happen in the future.
When also questioned about the volatility this situation could unleash in the markets, she indicated that the greatest threat currently facing retail savers in Europe is inflation. "A large proportion of Europeans keep a significant portion of their savings in bank deposits, in a market where the real interest rate has been negative in recent years, with the resulting loss of profitability", Albuquerque clarified, explaining that if we face inflationary pressures again, the situation "will only worsen".
She also stated that involving citizens in capital markets is a "better option for them in the long term". "Obviously, if people have a very short investment horizon, they may not have enough time to recover from negative periods. But when we talk about involving retail investors in capital markets, we're talking about long-term investments. People who save for 20, 30, or even 40 years for their retirement", she clarified.
Finally, when asked whether the European Commission is expected to support the inclusion of telecommunications networks in the taxonomy of sustainable activities, Albuquerque indicated that the Commission's objective is to promote real sustainability and not create bureaucratic burdens for companies.
She also stated that work is underway to simplify the regulatory framework and make it more relevant for companies and investors, prioritizing "clear and flexible" technical criteria that allow for adaptation to technological changes. Regarding telecommunications networks, the decision will depend on whether they meet the established criteria and clarified that the Commission has no sectoral bias and is technically analyzing their fit.
