Brussels redoubles pressure on Spain over the regulation used against the Sabadell takeover bid

BrusselsNew warning from the European Commission to Spain over the legislation the Spanish government used to block the failed public takeover bid (OPA) launched by BBVA against Sabadell. Brussels has sent a new letter to the State reminding it, as it already warned last summer, that it is not complying with European regulations on banking acquisitions, mergers, and spin-offs. This is Brussels' prior warning before what is known as a reasoned opinion, which, if not heeded, will lead to the case being brought before the European justice system.

The Community executive considers that both the Spanish legislation that grants powers to the Ministry of Economy to rule on the acquisition, mainly the competition defense law, and that which allows the Spanish executive to submit its evaluation to the council of ministers, contravene Union law. According to Brussels, the analysis must be carried out by the National Commission of Markets and Competition (CNMC) and, at the European level, by the European Central Bank (ECB).

Furthermore, the new notice that Brussels has formally sent to the State includes a new non-compliance and assures that it also fails to comply with the new European directive on capital requirements. Member states had until January 10 of this year to transpose this Community legislation into their own laws, and Spain has not yet done so.

In this regard, the European Commission has once again defended bank mergers such as that of BBVA and Sabadell, and assures in the statement issued this Thursday that they "benefit the economy of the European Union as a whole and are essential for the achievement of banking union". "They guarantee that citizens and companies have access to financial products at competitive prices," the document adds.

Brussels urges Spain to include non-residents in tax reliefs

Brussels has also sent a new letter of formal notice to Spain concerning what it considers to be "discrimination suffered by non-residents" in the country because they cannot "benefit from a tax relief on income derived from renting housing in Spain". "Resident taxpayers are entitled to a reduction of up to 60% of the taxable base of their income. This reduction does not apply to non-residents", criticises the European Commission, which considers this to be a restriction on the free movement of capital within the European Union.

On the other hand, the European Commission has announced that it has decided to take Poland and Spain to court for failing to transpose into their legislation the European regulations to strengthen the European Union's emissions trading system. Brussels denounces that the Spanish government has not communicated whether it has adopted these measures, even though the transposition deadline ended in December 2023. Before taking the case to the European court, Brussels had already repeatedly warned the State, as it has repeatedly warned, about the legislation that the Spanish government used to hinder the takeover bid against Sabadell by BBVA.