Agree on the Sabadell takeover bid

What Pedro Sánchez hates most in the world is losing, and a successful BBVA takeover bid for Sabadell would be a complete defeat. And he won't allow it under any circumstances. Furthermore, he can't let the Catalan people down. He's pledged his word and that of his government. It doesn't matter that the price he has to pay is very high, in terms of political credibility and legal certainty.

As Bloomberg stated, this is "the most politically charged corporate dispute since the Endesa takeover bids between 2005 and 2009." And this doesn't please Europe or the world's major financial investors. Financial transactions must be settled according to the rules of the free market, respect for property rights, and the free movement of capital. Everything else is nothing more than chivalry once competition regulators and the European Central Bank (ECB) have given their approval.

It would not be surprising if BBVA asked Brussels for protection if the takeover bid is thwarted for political reasons.

Sentimental, identity-based, or political and social interests can in no way limit the freedom of enterprise enshrined in Article 38 of our Constitution. It is true, as ECB Vice President Luis de Guindos has stated, that the law empowers the government to analyze this transaction in the public interest. For example, if the buyer were a Russian or North Korean bank, it would be absolutely justified to prohibit it or impose harsh conditions. But with BBVA, which has its origins in the Basque Country and is established around the world, the matter is more than debatable.

Therefore, the Executive must clearly define what is meant by "general interest" and how it justifies the conditions imposed. If, as requested by Second Vice President and Minister of Labor Yolanda Díaz, the takeover bid must be conditional on no employees being laid off or branches being closed, the absurdity would be utterly absurd, as was the idea of ​​Economy Minister Carlos Cuerpo calling for a referendum.

If such conditions are to be required for any merger or acquisition from now on, economic policy is geared toward small companies and banks. The European Union and the ECB are demanding exactly the opposite in order to compete in a globalized world. It would therefore not be surprising if BBVA were to ask Brussels for support if the transaction falls through for political reasons.

At this point, the most rational approach would be to reach an agreement that would allow the government to save face, as well as the Generalitat and the two contenders in the running. But, above all, it would allow the true owners of Sabadell, its shareholders, to decide whether or not they want to sell. One solution could be for BBVA to buy Sabadell and for them not to merge for a while. In other words, for it to be integrated into the Basque financial group, competing against each other.