The SPD is insisting that the headquarters of the new institution remain in Germany should the takeover of Commerzbank by Italy's UniCredit proceed. "If a transaction were to occur despite our position, the headquarters would have to be in Frankfurt, as that is where the business focus, the responsibility for the German economy, and thus the center of decision-making and supervision must lie," Armand Zorn, deputy chairman of the SPD parliamentary group, told Reuters on Monday.

The Milanese bank's advances toward Commerzbank are now also causing unease in Rome. The Italian government fears that UniCredit could offer to relocate its headquarters to Germany to overcome resistance from Berlin, three people familiar with the matter told Reuters on Friday. The government in Rome is opposed to the bank becoming more German-centric. The Italian state possesses extensive intervention rights to protect national interests. However, UniCredit itself told Reuters that its headquarters would remain in Italy.

Zorn stated that UniCredit's approach is more than a standard industry transaction, as central issues of financial stability and economic resilience are at stake. "We therefore maintain our clear stance: this takeover is the wrong path for Commerzbank and for Germany as a banking hub," said Zorn, whose constituency is in downtown Frankfurt, home to the banking district. "The hostile approach is particularly problematic, as banking integration without mutual trust poses significant risks for employees, customers, and the ability to reliably finance the German Mittelstand."

UniCredit had previously increased the pressure, questioning the future viability of the Frankfurt-based institution in its current form. It argued that Commerzbank is insufficiently prepared for upcoming industry challenges and is too focused on short-term goals. According to the Milan-based bank, a strategy dubbed "Commerzbank Unlocked" could boost the German rival's net profit to approximately 5.1 billion euros by 2028. This would be 600 million euros higher than the current market consensus estimate of 4.5 billion euros.

(Report by Christian Krämer. Edited by Hans Busemann. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)