MADRID, June 4 (Reuters) – The European Commission on Thursday chastised Spain for failing to implement its new capital requirements directive, following its earlier criticism of Madrid’s attempts to hinder BBVA’s takeover bid for Sabadell.
In a letter seen by Reuters, the Commission told the Spanish government it was in breach of EU regulations on the single supervisory mechanism, the capital requirements directive, and parts of the Treaty on the Functioning of the European Union.
While it did not specifically mention the takeover attempt, it said domestic measures in place in Spain were incompatible with the new CRD VI framework governing acquisitions and mergers.
The EU’s new capital requirements directive had to be implemented by January 2026.
Madrid has so far maintained that its domestic regulations are fully aligned with those in Europe. The Economy Ministry did not immediately reply to a request for comment.
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The Commission in July officially challenged Madrid’s attempts to hamper BBVA’s €16 billion ($18.6 billion) bid for Sabadell, which opened an infringement procedure. The bid ultimately failed.
Under Spanish law, the government could not stop BBVA from buying Sabadell’s shares, but it had the final word at a later stage on whether a merger went ahead. Madrid said it needed to protect jobs and competition.
The Commission said it considered then that Madrid’s broad discretionary powers constituted unjustified restrictions on the freedom of capital movement.
“Consolidations in the banking sector benefit the EU economy as a whole, and are essential for the achievement of the banking union,” the Commission said.
Madrid now has two months to respond and address the shortcomings raised by the Commission.
In the absence of a satisfactory response, it could ultimately refer Madrid to the EU’s highest court.
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(Reporting by Jesús Aguado; Editing by Jan Harvey)