Backing a Dutch initiative, EU Finance Ministers agreed to examine how to remove cross-border obstacles to takeovers in wholesale and retail banking. During the informal meeting in The Hague on 10-11 September the Ministers called up the Commission to study possible obstacles to cross-border mergers and acquisitions arising not only from different supervisory practices but also other broader factors. In addition, the Ministers took note of the Commission’s intention to review those parts of the EU’s Banking Directive that allow Member States to block mergers and acquisitions on prudential grounds.
However, a potential problem is that banks considering a merger or takeover may be dissuaded by preliminary contacts with banking supervisory authorities before any formal bid is launched. Speaking after the meeting, Commissioner Bolkestein stated that “more competition is needed – in wholesale, but also in retail –to close the present competitiveness and profitability gap with the US.”
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