European Union antitrust chief Teresa Ribera has urged member states to actively support cross-border mergers among major banks, underscoring their importance to completing the EU’s single market and strengthening competitiveness. Ribera emphasized that such mergers are critical to mobilizing investments needed for the bloc’s ambitious green and digital transformation goals.
Her remarks came amid Germany’s rejection of Italy’s UniCredit bid to acquire Commerzbank, highlighting the lingering resistance to cross-border banking deals despite clear policy endorsements. Germany cited a low offer price and concerns over UniCredit’s aggressive approach as reasons for dismissing the proposal, reflecting broader challenges in fostering cooperation between national banking sectors.
EU policymakers point to the necessity of larger, consolidated banks as a way to provide scale and funding capacity for Europe’s substantial investment needs. Cross-border bank mergers have recently seen a surge, reaching their highest level in nearly two decades, with combined deal values climbing significantly in 2025 compared to the previous year. These consolidation moves are seen as essential for creating financial institutions capable of competing globally and investing heavily in technological advancements.
Eurogroup President Kyriakos Pierrakakis, also Greece’s finance minister, echoed the call for larger banks, highlighting the European banking sector’s lag behind U.S. and Chinese counterparts in technology investments. He stressed the importance of fostering European champions rather than national ones, promoting banking consolidation across borders to build institutions robust enough to support sustained innovation and growth.
However, progress toward a true banking union remains limited, with no unified deposit guarantee scheme for the eurozone undermining deeper integration. This gap has stalled past efforts to streamline supervision and risk-sharing mechanisms, which would facilitate smoother cross-border mergers and greater financial stability.
Ribera framed cross-border banking mergers as one of Europe’s most urgent competitiveness priorities, urging member states to recognize the broader benefits these consolidations bring. Her call signals mounting pressure on national authorities to overcome political and regulatory barriers, aligning banking policy with the EU’s strategic agenda for a more integrated and resilient single market.