Junts' 24-hour silence on the hostile takeover bid for Sabadell

BarcelonaThe fortieth meeting of the Círculo de Economía (Economic Circle) has marked the economic and political week, both in Barcelona and Madrid. Spanish President Pedro Sánchez's announcement to hold a public consultation on BBVA's hostile takeover bid for Sabadell took the Barcelona audience by surprise, and the proposal dominated much of the day's conversation. But another question also loomed: Why did Pere Soler, Junts' nominee for the National Commission on Markets and Competition, endorse BBVA's intentions, along with the other members of the body?

"This gentleman had only one mission, and that was to oppose the takeover bid," opined one voice from the economic world at the Círculo's dinner on Monday, expressing his bewilderment. Another prominent representative of Barcelona's finances believed that the person appointed by Junts lacked sufficient knowledge of the discussion he was participating in. Disorientation also gripped the Junts leadership last Wednesday when, after a marathon meeting of the CNMC (the Spanish National Commission for the Promotion of Social Development) – which was closed for nine hours – they learned that Pere Soler had not issued any dissenting vote on the ruling on the takeover bid for Sabadell. It's not that there was any slogan – "he's not just another deputy," a knowledgeable source emphasized – but Junts took opposition to the Basque bank's financial operation for granted.

The head of The Economist

On Labor Day, May 1st, all pressure was directed at the Spanish government to halt the takeover bid for Sabadell, as the matter would most likely come to its attention with the possibility of toughening the terms of the financial operation. Employers' associations and unions, as well as Sumar and Esquerra, spoke out, while the president of the Generalitat (Catalan government), Salvador Illa, had said Wednesday night that he would defend Catalan interests. Together for Catalonia opted for silence and to follow the script planned for Labor Day—Ennatu MP Domingo, who was at the demonstration, made statements—without referring to the takeover bid.

However, all eyes soon turned to them. Internally as well: several sources consulted indicate that criticism against the management and Pere Soler began to simmer in WhatsApp groups. "The ridicule has been enormous," they said, "In a serious party, someone should resign" or "Who decided that Soler would be our representative?" One of the headlines that circulated the most was one of The Economist which said "The change of vote of the Junts member facilitated a ruling on the takeover bid for BBVA" and several members expressed their bewilderment with the position of the former director of the Police in Catalonia during the 1-O.

A virtual meeting

Thus, Soler's vote became a political narrative issue for Junts, which had shown itself to be opposed to BBVA's intentions. Therefore, according to several sources consulted by this newspaper, Junts' Secretary General, Jordi Turull, summoned Pere Soler to a virtual meeting on Friday, May 2, to explain the meaning of his vote. The astonishment was there on the part of Turull, but above all on the part of former President Carles Puigdemont, according to knowledgeable sources. Also present were Albert Batet, president of the group in the Parliament and interlocutor with the economic world; Josep Rius, the party's spokesperson; and Míriam Nogueras, leader of the party in the Congress of Deputies.

Pere Soler defended his decision before Puigdemont at the CNMC. As detailed by AHORAAt the last minute, considering that competition problems were much more serious in Catalonia, he introduced conditions on the financing of Catalan SMEs so that the ruling would be unanimous. Soler's position was to prioritize this over a dissenting vote, which he considered would not have changed the entity's position either. Among other things, it was established that BBVA would be obliged to maintain lending to companies that had 50% of their financing in Sabadell or in the Basque bank itself. This figure differed from the rest of Spain—the threshold is 85%—due to the banking concentration in the Principality in the face of a possible merger.

Was Pere Soler's explanation sufficient for Junts? The leadership remained bewildered, according to several sources consulted, since whatever Soler's motives were, there was consensus on one issue: Junts' position was very difficult to explain. In any case, once Soler left the meeting, it was not decided to ask for his resignation. Soler's position, in fact, is not at Junts' disposal: he was appointed for a six-year term and does not respond to the party's criteria, since, as sources familiar with the matter point out, the members of the CNMC are "independent."

Puigdemont and Turull

After the meeting with Soler, Junts decided to break its silence. It opted to call the media unexpectedly on the long weekend Friday, where Turull shifted pressure to the Spanish government and argued that Soler had achieved technical improvements to the ruling that the Spanish government could now use to halt the financial transaction. A very different story from the one that had been circulating for hours. On Saturday, it was former president Carles Puigdemont's turn on X. after Esquerra fired at Junts for the takeover bid: He admitted the "discrepancy" between the party and the CNMC director, but maintained that both positions are to "defend the interests of Catalonia." He also attempted to shift the focus to the other members of the CNMC, most of whom were proposed by the PSOE, a party that also opposes the takeover.

Executive meeting

Puigdemont and Turull also provided explanations on Monday to the Junts leadership, which was stunned by the events. Both leaders gave a lengthy account of the entire sequence and did not waste the opportunity to point out that in 2017, Sabadell decided to move its headquarters out of Catalonia following the October 1 referendum. According to the sources consulted, there were no calls for Soler's resignation either.

Ultimately, Junts has opted for a difficult balance: maintaining its position against the takeover bid for Sabadell and, at the same time, not breaking with Soler, the direct route they have through the CNMC to gain influence in Madrid. A strategy that has so far allowed them to gain a foothold in key decision-making bodies, but at the same time has caused a firestorm on a not-so-minor issue: the takeover bid for Sabadell, which rejects not only the Catalan social fabric but also the business community with which Junts has managed to forge alliances.