It’s the last chance for an EU finance union

Deeds, not words. Despite the numerous reports (such as Draghi and Letta) and the clear momentum towards ‘more union’ for EU financial markets among policymakers, it seems that national reflexes haven’t changed. The new Merz government in Germany continues to oppose the Unicredit takeover of Commerzbank.  For political reasons, the Italian government would prefer the problematic MPS bank to take over Mediobanca or to stop BPM being taken over by Unicredit. The Spanish finance minister also opposes the Sabadell acquisition by BBVA for domestic reasons. In the meantime, the necessary moves towards consolidation and specialisation in Europe’s financial markets isn’t advancing. 

Karel Lannoo is General Manager of ECMI and CEO of CEPS. The original version of this article was published in Handelsblatt on 11 June 2025.