The EU said Spanish laws granting the power to intervene in banking deals undermined the ECB and restricted the bloc’s ...

According to the EC, Spain's actions contravene European Union rules, potentially impacting the region's banking consolidation efforts.

The EU on Thursday warned Spain it might be in breach of the bloc's rules after the government set conditions on a merger between banking giant BBVA and rival Sabadell.

Spain's leftist government on Tuesday postponed any merger between banking giant BBVA and rival Sabadell for three years, complicating a hostile takeover bid that could create a new sector colossus.