The European Commission notified Spain on Thursday that it has not properly implemented the updated capital requirements directive and that some of Madrid's domestic measures run afoul of EU banking supervision rules.
In a formal letter to the Spanish government, the Commission said Spain violated provisions tied to the single supervisory mechanism, the capital requirements directive and elements of the Treaty on the Functioning of the European Union. The correspondence did not single out any particular takeover bid by name, but it stated that Spain's national rules were incompatible with the CRD VI framework that governs acquisitions and mergers.
CRD VI must be implemented by EU member states by January 2026, according to the Commission's timeline noted in its communication with Madrid.
Spanish authorities have maintained that their national regulations conform fully with European rules. The Economy Ministry did not reply to requests for comment on the Commission's letter.
The Commission reiterated its view that consolidation within the banking sector serves the wider EU economy and plays an essential role in the establishment of the banking union. It also said the broad discretionary powers enjoyed by Madrid represented unjustified restrictions on the free movement of capital.
The action follows an earlier escalation this year: in July the Commission opened an infringement procedure after questioning Spain's efforts to block BBVA's €16 billion bid for Sabadell. That takeover attempt ultimately failed. Under Spanish law at the time, the government could exercise final approval over whether a merger would proceed, with Madrid defending its interventions on grounds of protecting jobs and preserving competition.
With the new letter, Spain now has two months to address the points raised by the Commission and to submit its observations. The infringement procedure signals that Brussels is prepared to press the matter further if it judges Madrid's response insufficient.
Contextual note - The Commission's communication frames the issue as one of harmonising national measures with union-wide supervisory and capital standards designed to regulate acquisitions and mergers in the banking sector.