The European Commission has expressed that it sees no grounds for the Spanish government to block BBVA's takeover bid for Banco Sabadell, urging Madrid to facilitate the operation without imposing undue obstacles. Spanish Economy Minister Carlos Cuerpo has emphasized that the government is acting scrupulously and in full compliance with both Spanish and European regulations, expressing confidence that no conflict will arise with Brussels over the matter. Despite this, the Spanish government has elevated the review of the takeover bid to the Council of Ministers, planning to make a decision in June based on national law. The European Union has warned Spain against obstructing the consolidation, stating that such banking mergers are necessary to create strong lenders. The European Commission has also indicated willingness to take Spain to the EU Court if it arbitrarily blocks the bid. Meanwhile, the National Court of Spain is set to examine whether the government's public consultation process regarding the takeover respects legal standards and whether it can be used to hinder the offer. BBVA has acknowledged to the U.S. Securities and Exchange Commission that the government intervention poses a risk to the successful completion of the bid. Despite these developments, BBVA and Sabadell shares have risen on the stock market. The Spanish government maintains it is respecting domestic law while responding to EU concerns, with Economy Minister Cuerpo calling for mutual respect between Spanish and European legal frameworks. The CNMV (Spain's securities market regulator) is expected to approve the takeover bid prospectus approximately ten days after the government's verdict.