'Too big to exist'

At the time, I didn't understand the CNMC's decision regarding BBVA's takeover bid for Sabadell. I didn't understand it because the banking concentration—measured using the usual objective indices—would be extremely high in Catalonia in particular and in Spain in general, and because a significant portion of the corrective measures imposed are temporary: if the merger entails an undesirable reduction in competition in certain markets, nothing is resolved by establishing measures for 36 months. It seemed to me that the only logical measure was to eliminate these dysfunctions permanently.

I understood even less the confusing reasons given for the vote of the member proposed by Junts per Catalunya, Mr. Pere Soler, according to which he had obtained measures that would improve the position of Catalan SMEs. I didn't understand them because territorial discrimination—whoever practices it—is illegal, both in Spain and in the European Union.

The BBVA-Sabadell merger is not good from the point of view of the public interest

I am therefore pleased that President Sánchez has launched a public consultation on this matter. The first question we are asked is "whether there are criteria of general interest other than the defense of competition that could be affected by the BBVA/Sabadell transaction." The answer is yes. BBVA is already a systemic bank, which in practice means that it is a bank that is too big to fail , meaning that if one day things go wrong, it will not be liquidated like any other store or garage, but will have to be bailed out at taxpayer expense. An increase in the bill due to the merger is, therefore, undesirable from the perspective of the public interest, which is the subject of the consultation.

It's true that the Spanish authorities have already placed some financial institutions in the hands of BBVA; but it was a lesser evil to prevent its bankruptcy. Now, what we're dealing with is a bank—Sabadell—that is healthy and doesn't need a bailout. Those precedents, therefore, don't apply.

It's also true that there are reasons to argue that Europe benefits from having more banks. But this goal must be achieved through cross-border mergers. If BBVA were to make a takeover bid for a healthy bank in another European country, we could adopt a more lenient position: the resulting bank would be larger, but the risk to the Spanish taxpayer would not increase.

I've heard the arguments of those who believe that the only ones who should make the decision are BBVA shareholders (who have already made it) and Sabadell shareholders (who must make it). I completely disagree. Few words are more perverted than liberal , but as a liberal, I must say that "too big to fail" means "too big to exist ." The merger is not good from the perspective of the public interest, and therefore I will applaud the Spanish government's halting it or at least placing significant conditions on it.