EU’s Banking Push Meets Italian Resistance

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union. We’re keen to hear your views on this newsletter. Please participate in our short survey.

The EU has long lagged behind the US and China when it comes to big banks. With the bloc’s banking union still a work in progress, many in Brussels and beyond are calling for financial-industry consolidation to boost the competitiveness of European lenders. Invariably though, these efforts run into national resistance. EU regulators are currently preparing to send a letter to the Italian government, questioning its right to impose conditions on UniCredit’s planned takeover of Banco BPM, we’re told. The commission, which has already approved the deal, will likely say that under the bloc’s merger rules only Brussels has the legal power to impose such conditions on the acquisition. Observers will be watching closely how the clash plays out, which may have ramifications across industries at a time when there’s a push for consolidation in sectors ranging from banking to defense and transport.