BBVA’s signal to the government remains cautious, even as the executive repeatedly rejects the hostile bid by the bank for Sabadell. The bank’s chair, Carlos Torres Vila, publicly and personally offered congratulations to Pedro Sánchez for Spain’s growth, during a business summit between Spain and Turkey held at BBVA’s Madrid headquarters with the Spanish prime minister and the Turkish president in attendance.
Torres did not hold back praise. Spain, he asserted, has shown a resilient and dynamic economy that has expanded and will grow well above the European average, driven by strong employment, consumer spending, tourism, exports, and the notable positive impact of European funds, whose effect is now becoming more evident. In other words, he suggested that the government should not be blamed for delays in fund arrival; rather, he highlighted progress. The bank’s research team had expected growth of 2.1% in 2024 for the country earlier in the year, compared with 0.7% in the euro area, but now it forecasts a 2.5% expansion, calling it a very notable figure in the current context and worthy of congratulations to the government.
He also credited the government for its decisive commitment to ecological transition and renewable energy, which positions Spain as a leader, and for driving inclusive growth, goals that BBVA fully shares. The recent establishment of the Productivity Council was seen as laying the groundwork for solid long‑term growth, supported by investment and aimed at boosting the purchasing power of all Spaniards.
Specific dimensions
Unlike some bankers, Torres has never been particularly combative in political matters, though he has not shied away from making critical statements at times. For example, during the bank’s annual results presentation in January, he warned that confidence must be built for economic players to invest in Spain, provided they see clear rules of the game, a solid institutional framework, and the rule of law. He has also publicly opposed the government’s banking tax, consistent with the stance of his peers. It is common for business leaders to adopt a more cautious posture when in the presence of government officials at public events like the one on Thursday. Yet Torres’s praise carries special weight given it coincides with Sabadell’s takeover bid.
The economy minister, who was also present, has signaled his rejection of the operation from the start. This matters because the government retains at least two legal tools to challenge the merger. First, if the National Commission on Markets and Competition moves the deal to a second phase, the Council of Ministers could tighten the conditions on the integration. Second, if the bid succeeds, the economy minister could veto the merger, forcing BBVA to preserve Sabadell as a subordinated subsidiary.
Nevertheless, BBVA shows no intention of stepping back and plans to push the purchase through. The company expects the regulator to approve the deal in the first phase with conditions, as it did in the CaixaBank-Bankia merger, which would limit government commentary in that phase. Even in a possible second phase, there are legal questions about the government strengthening conditions, since such power has typically been used to soften them. BBVA believes that a future government would ultimately allow the merger to proceed. If not, the deal would still make economic sense, with synergies that would be small and manageable, a view that keeps the path to integration alive and credible.