Six ECB Governors Express Support for UniCredit-Commerzbank Deal in Principle, According to Reuters

By Francesco Canepa and Balazs Koranyi

FRANKFURT – Six policymakers from the European Central Bank (ECB) expressed to Reuters their general support for a merger between Italy’s UniCredit and Germany’s Commerzbank. They believe that the German government’s objections to the deal conflict with the ideals of European integration.

The German government is pressuring UniCredit to abandon its merger plans, criticizing the Italian bank’s "aggressive" approach and advocating for the independence of Commerzbank, Germany’s second-largest lender.

Ultimately, the ECB’s 26 policymakers will decide whether the merger can go ahead. Discussions with several of them revealed dissatisfaction with Germany’s stance, which some described as hypocritical.

These policymakers highlighted Germany’s professed commitment to establishing a banking union in the EU and fostering regional champions in sectors such as defense. They also noted Germany’s advocacy for free market principles, particularly in monetary policy.

In principle, the policymakers support a merger that would create a more significant banking group operating across multiple European nations, which has long been an objective of the ECB as it supervises the eurozone’s largest banks.

However, they acknowledged that the ECB has limited influence over this political dispute, apart from emphasizing the importance of a banking union.

An ECB representative declined to provide comments.

UniCredit, whose market value is three times that of Commerzbank, is seeking the ECB’s approval to increase its stake in the German bank to 29.9%. UniCredit has already built its stake to nearly 21% through various shares and derivatives.

The decision will be made by the ECB’s Supervisory Board, chaired by Claudia Buch from Germany. This board consists of representatives from 21 countries and focuses on aspects such as capital, liquidity, business plans, and governance.

After that, the ECB’s Governing Council—which includes President Christine Lagarde, five board members, and governors of the 20 eurozone central banks—will have the final say through a "non-objection procedure."

The sources noted that they have yet to review the specifics of UniCredit’s plans, which are crucial for garnering their eventual support in a decision that might take several weeks to finalize.

Commerzbank plays a vital role in the German economy, servicing over 25,000 business customers and handling nearly a third of Germany’s foreign trade payments. With more than 42,000 employees, it is considered a cornerstone of Germany’s industrial sector.

The bank contends that its position as a key lender to the mid-sized "Mittelstand" companies—viewed as essential to Germany’s economic stability—justifies its resistance to UniCredit’s advances. There is also concern from trade unions about potential job losses.

On Wednesday, UniCredit’s CEO Andrea Orcel stated that his bank’s investment in Commerzbank is "an investment, nothing else." He emphasized that while all options, including withdrawing from negotiations, remain on the table, he is eager to engage in discussions with the German government.