UniCredit-Commerzbank, ECB sends a message to Berlin and blesses the European approach

There ECB returns to bless the hypothetical merger between UniCredit and Commerzbank and he does it through the mouth of the vice president Luis de Guindos Jurado. “In my opinion, a European approach should prevail over national ones. This is how integration should proceed,” de Guindos explained. Within a couple of months the ECB will move from words to actions, expressing its opinion on the supervisory aspects of the possible UniCredit-Commerzbank merger.

Why the ECB is in favor of the merger

“In my opinion, a pro-European approach to the integration of the economy, banking system and capital markets should prevail for all aspects involved, including the reform of the Mes“, added de Guindos speaking to Ansa and launching a stored in Italythe only country in the 27-member Europe not to have signed the ratification of the European Stability Mechanism, “hindering the strengthening of the safety net for bank bailouts”.

Already in September de Guindos had expressed the ECB’s openness to the agreement between UniCredit and Commerzbank: “We have always been in favor from the cross-border mergers. Whenever one occurs, national concerns typically emerge,” he declared during a conference in Madrid, commenting on Berlin’s doubts, which week after week have escalated into open hostility. “The important thing – he added – is how much the fusion is adequate from the point of view of the business model”.

If Andrea Orcel, CEO of UniCredit, managed to complete the merger with Commerzbank, the operation would lead to the creation of the Germany’s largest banka credit titan even more important than Deutsche Bank in terms of turnover, capable of keeping up with the big institutions Americans And Chinese. This is precisely the line adopted by the ECB on all fronts, from banking to finance, from insurance to industry. For the Frankfurt Institute, the European Union must overcome the era of nationalism and partisan interests or it will not be able to cope with the challenges of the global market.

Commerzbank is taking its time

Bettina Orloppnew CEO Of Commerzbankmeanwhile he rejects UniCredit’s advances. The “nein” to the merger hypothesis is motivated by the failure to complete theBanking Union in Europe and with the absence ofEdisthe common EU deposit guarantee scheme. In the absence of these elements considered essential, declared Orlopp a The Bankerthe UniCredit-Commerzbank merger is impossible.

Orcel’s move to protect UniCredit

UniCredit currently holds a share of Commerzbank equal to 21%. Given the stalemate in negotiations, Andrea Orcel has activated derivatives to protect his bank from fluctuations in the German stock. This move allows UniCredit to maintain optional participation and manage the game in the long term.

Berlin against the merger

Meanwhile, the German government is reportedly considering thetightening from the transparency rules to hinder the merger. Berlin wants to avoid at all costs the possibility that in the near future strategic decisions regarding Commerzbank will be taken in Milan. German Chancellor Olaf Scholz defined UniCredit’s aims at the German bank as “unfriendly attacks” and “hostile takeovers”. UniCredit CEO Andrea Orcel “confirmed interest” in Commerzbank “but also the desire not to come into conflict with the German government”.