08 November 2005

Commission published analysis of obstacles to cross-border mergers

The Commission presented to the Council of Economic and Finance Ministers (ECOFIN) its preliminary analysis of why there has been little cross-border consolidation so far in the EU financial sector. A market participant survey launched in April 2005 helped to identify the main obstacles of cross-border consolidation.

An overwhelming majority identified the lack of cross-border cost synergies as the major obstacle, based on a lack of integration of the internal market for retail financial products, diverging supervisory rules, and impediments to corporate reorganisation on a pan-European basis. Also, market participants pointed at the supervisory approval process for the acquisition of qualifying shareholdings in banks. The Commission has already started to work on amendments of the current provisions. In order to ensure cross-sectoral consistency, similar provisions in the insurance and securities sectors will also be examined.

Press release
FAQ
Commission Staff Working Document
Annex: Survey results
Background document as of June 2005
Annex to the background document as of June 2005
Addendum on Cross-border consolidation as of November 2005

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