Commission targets bank-deal meddlers

The European Commission is to announce next week proposals for an overhaul of regulations determining national jurisdiction over mergers and acquisitions in the banking sector.

Changes to article 16 of the banking directive are aimed at dismantling remaining obstacles to EU-wide consolidation of the sector.

Article 16, which allows national supervisors substantial leeway in cross-border merger decisions, in cases where national financial stability is deemed to be at stake, has been misused by national authorities for protectionist ends. Changes to the directive were initially proposed two years ago at an informal meeting of EU finance ministers, Ecofin.

The Commission’s drive to close remaining loopholes in the directive was given renewed vigour last year when Antonio Fazio, the then governor of the Italian central bank, tried to block two bids for Italian banks that had already been cleared by competition authorities.

"A clear and transparent notification and decision-making process for competent authorities and firms has been introduced," said Oliver Drewes, the Commission’s internal market spokesperson. "The deadlines have been reduced and any stopping of the clock by…authorities has been limited to one occasion and is subject to clear conditions."

Supervisors will now have only 30 days in which to rule against a deal.

The European Commission is to announce next week proposals for an overhaul of regulations determining national jurisdiction over mergers and acquisitions in the banking sector.