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| Version 0 | Version 1 |
|---|---|
| EU plans to ease banking mergers | EU plans to ease banking mergers |
| (about 2 hours later) | |
| The European Commission has unveiled plans aimed at facilitating cross-border mergers between banks. | The European Commission has unveiled plans aimed at facilitating cross-border mergers between banks. |
| Existing rules allow member states to block proposals if they think a merger threatens the target firm, but the EU says the rules are prone to abuse. | Existing rules allow member states to block proposals if they think a merger threatens the target firm, but the EU says the rules are prone to abuse. |
| The proposals would make criteria for objecting harder and "leave no room for political interference", said the EU. | The proposals would make criteria for objecting harder and "leave no room for political interference", said the EU. |
| The decision follows rows in 2005 when Italy's central bank was seen to stop cross border bids for Italian banks. | The decision follows rows in 2005 when Italy's central bank was seen to stop cross border bids for Italian banks. |
| This created a conflict between Italy's then central banking governor Antonio Fazio, and the European Commission. | This created a conflict between Italy's then central banking governor Antonio Fazio, and the European Commission. |
| Mr Fazio was seen trying to prevent a take-over of Banca Antonveneta by ABN AMRO as well as of Banca Nazionale del Lavoro (BNL) by Spanish bank BBVA. | Mr Fazio was seen trying to prevent a take-over of Banca Antonveneta by ABN AMRO as well as of Banca Nazionale del Lavoro (BNL) by Spanish bank BBVA. |
| 'Clear and transparent' | 'Clear and transparent' |
| Italy is not alone. The EU had also come to blows with Poland for blocking foreign finance deals. | Italy is not alone. The EU had also come to blows with Poland for blocking foreign finance deals. |
| "These new rules mean that supervisory authorities will have to be clear, transparent and consistent when assessing cross-border mergers and acquisitions," said Charlie McCreevy, the EU's internal markets and services commissioner. | "These new rules mean that supervisory authorities will have to be clear, transparent and consistent when assessing cross-border mergers and acquisitions," said Charlie McCreevy, the EU's internal markets and services commissioner. |
| The stricter conditions would make it harder for member states to prevent takeovers of domestic banks by foreign banks simply because they disliked the idea. | The stricter conditions would make it harder for member states to prevent takeovers of domestic banks by foreign banks simply because they disliked the idea. |
| A specific list of rules would spell out what national supervisory bodies can do, with clear decision-making processes to allow or block finance mergers. | A specific list of rules would spell out what national supervisory bodies can do, with clear decision-making processes to allow or block finance mergers. |
| As well as making the criteria for national objections more stringent, the EU wants to reduce the time during which a national watchdog can examine a merger from 3 months to 30 days. | |
| Mr McGreevy hopes that if more finance mergers were allowed to go ahead, the EU would be able to better compete with the US. | Mr McGreevy hopes that if more finance mergers were allowed to go ahead, the EU would be able to better compete with the US. |
| To pass the legislation all EU member states must approve the new proposals. | To pass the legislation all EU member states must approve the new proposals. |