FRANKFURT (Reuters) – Six European Central Bank policymakers broadly support a merger between UniCredit and Commerzbank and see Berlin’s opposition to such a deal as running counter to the principle of European integration, they told Reuters.
The German government is pressuring UniCredit to abandon its planned merger with Commerzbank, criticizing the Italian bank’s “aggressive” tactics and supporting Germany’s second-largest bank’s efforts to remain independent.
Conversations with half a dozen of the ECB’s 26 policymakers, who will have the final say on the outcome of any deal, revealed frustration with Germany’s attitude, which some called hypocritical.
Berlin supports the creation of a banking union in the European Union, regional champions in other sectors such as defence and defends the principle of the free market in areas such as monetary policy.
All spoke on condition of anonymity because they were not authorized to comment on commercial banks.
Politicians have said they are in principle in favour of a deal that would create a larger banking group operating in several European countries, a long-standing goal of the ECB, which oversees the euro zone’s largest banks.
The ECB can do little to influence the outcome of the political standoff other than reaffirm the importance of a banking union, they said.
An ECB spokesman declined to comment.
UniCredit, whose market value is three times that of Commerzbank, is seeking ECB approval to increase its stake in the German bank to 29.9%, after raising it to almost 21% through a mix of stocks and derivatives.
The decision will be taken by the ECB’s supervisory board, chaired by Germany’s Claudia Buch, which includes representatives from 21 countries and focuses on prudential aspects such as capital, liquidity, business plans and governance.
The ECB’s Governing Council, comprising President Christine Lagarde, five council members and the central bank governors of the 20 eurozone countries, will then have the final say, under a “non-objection procedure”.
The sources have not yet seen details of UniCredit’s plans, a crucial element in securing their final support in a decision that will not come for several weeks, they said.
(Reporting by Francesco Canepa and Balazs Koranyi, by Bertrand de Meyer, edited by Kate Entringer)
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