It was funded under the first call for proposals of Italy’s “National Recovery and Resilience Plan” and partly backed by the European Union’s “Next Generation EU Recovery Fund.”

The charging stations are spread across five regions, namely Campania, Lazio, Lombardy, Puglia, and Sicily, which cover around 21 provinces. The densest clusters are in the major cities, with Rome leading at 396 charging points, followed by Naples with 298, Milan with 227, Bari with 111, and Catania with 112.

Southern Italy boasts most of the charging stations, with around 40%. It’s important to note that the region had a weaker charging infrastructure historically and has now gotten a meaningful boost.

The new charging stations operate by providing an output of approximately 90 kilowatts of power per connector, allowing two electric vehicles to charge simultaneously and reducing driver wait times. Users can access this charging network through the “Enel On Your Way” app or card, or via 160 interoperable mobility service providers available in Italy and abroad. This system ensures that multiple EV brands can plug in without any difficulty.

The stations have POS terminals so customers can use their debit or credit card just like they would at a petrol station.

The first PNRR batch accounts for about 50% of the grants awarded so far. The three PNRR calls for urban charging infrastructure. PNRR stands for “Piano Nazionale di Ripresa e Resilienza,” which translates to National Recovery and Resilience Plan in English.

This plan is Italy’s effort to modernise its economy after the COVID-19 crisis through a huge package of grants and loans from the EU fund.

The PNRR pumps 191-194 billion euros into six big missions, which include digitalisation, green transition, and sustainable transport. Additionally, the funds also target educational research, inclusion, and healthcare.

The project funds various initiatives, including electric vehicle charging networks, renewable energy projects, school upgrades, and digital government reforms. PNRR also absorbs a large share of the cost. Companies bid for calls for proposals run by ministries.

The 3,730 EV charging points in Italy were partly financed under the first PNRR call for urban electric vehicle charging infrastructure, which is why you see PNRR linked to that rollout.

Enel is already working on an additional 200 charging points through the second and third PNRR calls, which will bring its total to around 5,000 charging points across nine regions, including Piedmont, Veneto, Emilia Romagna, and Tuscany.

For the business and retail sectors, EV expansion makes logistics easier while supporting the European nations’ energy transition goals.

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While sharing the update with the Saudi-based business media outlet Al-Eqtisadiah, on the sidelines of her participation in the events of the TOURISE 2025 forum in Riyadh, Santanche said, “Saudi Arabia has made significant progress in diversifying its tourism offerings and improving its infrastructure, making it an attractive destination for international visitors.”

While emphasising that tourism exchange programmes between the two countries could enhance cultural ties and encourage visitor flows, the Italian Minister mentioned that the European country is working with the national carrier ITA Airways to explore opportunities to enhance direct air connectivity with Saudi Arabia to accommodate tourist flows in both directions.

Relations between Saudi Arabia and Italy are witnessing steady growth, with the trade volume between the two countries reaching 966 million euro (USD 1.11 billion) in the first half of 2025. Tourist flows are increasing as well, as more than 322,000 Saudi nationals visited Italy in 2024, a 65% increase year-on-year, spending more than half a billion euros.

“Participation in the forum provided an opportunity for leading Italian companies to showcase what they have, creating favourable conditions for mutual investment and further enhancing relations between the two countries. We are actively promoting cooperation between Italy and Saudi Arabia. The participation of Italian companies in the ‘TOURISE’ initiative is an important step in this direction,” Santanche noted.

“Many Italian tourism companies are currently operating in Saudi Arabia and are ready to cooperate with their Saudi counterparts to develop new opportunities,” Santanche continued, while confirming that facilitating the entry of Gulf Cooperation Council (GCC) citizens, led by Saudis, into European Union (EU) countries is an important factor for increasing current tourism flows.

In April 2024, the European Commission adopted a historic decision to grant GCC citizens five-year multiple-entry Schengen visas. Saudis currently account for 60% of the Schengen visas granted to the Gulf countries combined, amounting to 470,888 visas, as previously reported by the EU press office in the Belgian capital Brussels to Al-Eqtisadiah.

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The agreement, which was signed in port, read that it would prepare a full feasibility study for biogas production units that process agricultural and animal waste and was attended by Petroleum Minister Karim Badawi, Local Development Minister and Acting Environment Minister Manal Awad, and Governor Mohab Habashi Khalil.

Andrea Marsanich, manager of Eni’s carbon offset solutions, and Yasser Abdullah, the chairman of the foundation’s board of trustees, attended the event along with Francesco Gaspari, managing director of AIOC, Eni’s Egyptian subsidiary.

The programme aligns with Eni’s four-year regional investment plan of €24 billion ($26.2 billion) in Algeria, Libya, and Egypt as part of the Mattei Plan of the Italian government to deepen energy and economic relations with Africa.

“Karim Badawi, Minister of Petroleum and Mineral Resources, stressed the importance of using this advanced technology in all governorates of the republic,” the Ministry of Petroleum and Mineral Resources wrote in an official post.

“He noted that the petroleum sector is ready to provide all necessary support and contribute effectively to the implementation of sustainable development projects, most notably biogas units, through sector companies spread across the country in cooperation with foreign petroleum companies operating in Egypt,” it added.

According to Badawi, this assistance is a crucial component of the industry’s corporate social responsibility to the communities surrounding petroleum operations, which aims to enhance resource efficiency and encourage local development.

Awad revealed that Egypt’s efforts to increase international collaboration and public-private partnerships to advance biogas technology, lower emissions, and produce sustainable energy from animal and agricultural waste are reflected in the agreement.

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The increase in his stake follows MPS’s unexpected 13.3 billion euro all-share offer to acquire Mediobanca in January 2025, which the Milanese merchant bank described as hostile. Francesco Caltagirone, a long-time investor in Mediobanca and Generali, also owns a 2% stake in BPM and a 53.3% stake in Anima Holding, a fund manager that Banco BPM is attempting to acquire.

Francesco Caltagirone, 81, has become an ally of Italy’s conservative government, which has repeatedly stated its intention to re-privatise the bailed-out lender in order to create a third major banking player in the country. In November 2024, when the Italian Treasury sold a portion of the Tuscan bank, Caltagirone purchased 32.5% of MPS. He later increased his investment to 5%.

The Treasury’s long-held preference to merge MPS with Banco BPM was thwarted when larger rival UniCredit made a hostile takeover offer for BPM. Before UniCredit’s aggressive move, BPM had acquired a 5% stake in MPS, increasing the likelihood of a future partnership.

Who Is Francesco Gaetano Caltagirone?

Francesco Gaetano Caltagirone was born in Rome, Italy, into a family with a long history in the construction sector. Exposed to the world of entrepreneurship at a young age, he began working with his brothers and a cousin to revive his late father’s construction company after completing his education. This initial exposure to the field prepared him for his subsequent rise to prominence as a business tycoon.

Caltagirone expanded his business interests and became more involved in significant infrastructure projects during the 1980s. One of his key early moves was purchasing Vianini Lavori, a company engaged in major civil engineering and construction. By supervising extensive infrastructure projects and contributing to Italy’s urban development, this acquisition helped him build a strong reputation in the construction sector. Vianini provided Caltagirone with invaluable experience in project management and expanded his influence in the industry.

During this time, Francesco Caltagirone also began diversifying his business interests outside of construction. In 1992, he acquired Cementir, an Italian cement company. Under his leadership, Cementir expanded and became one of the top cement producers in Italy and internationally. Cementir became one of the cornerstones of his business empire, and Caltagirone expanded its operations globally, solidifying his standing as a shrewd entrepreneur with a keen eye for investment opportunities across various industries.

In 1999, Francesco Caltagirone entered the publishing and media sectors, further diversifying his business endeavours. He founded the media conglomerate Caltagirone Editore, which grew into one of the largest newspaper publishers in Italy.

The group’s ownership of prominent newspapers such as Il Messaggero, Il Mattino, and Il Gazzettino cemented Caltagirone’s position as a major media force. His expansion into other sectors illustrates his strategic vision and ability to identify lucrative business opportunities.

Francesco Caltagirone’s career has extended beyond media and construction. Over time, he has accumulated significant holdings in a range of businesses, particularly in the insurance and financial sectors. His investments include Anima Holding, a leading asset management company in Italy, and Assicurazioni Generali, the country’s largest insurance provider.

He also holds substantial stakes in Banco BPM, one of Italy’s top financial institutions, demonstrating his influence in the banking sector. These investments highlight his versatility across industries and his ability to make calculated decisions that align with his corporate objectives.

Throughout his career, Caltagirone has consistently sought to grow his company through mergers, acquisitions, and strategic investments. His success and fortune are a result of his excellent timing and ability to identify profitable opportunities.

Francesco Caltagirone is among the wealthiest individuals in Italy, with an estimated net worth of USD 6.33 billion as of 2025. Through a combination of strategic diversification and visionary leadership, he has established a lasting legacy across multiple industries.

A Pivotal Figure In The Banking Industry

After Francesco Caltagirone bailed out Monte dei Paschi di Siena (MPS) and fund manager Anima Holding in 2024, MPS seized the opportunity in January 2025 by launching a surprise 13.3 billion euro all-share offer to acquire merchant bank Mediobanca, in which the Italian tycoon had become the second-largest investor over the past five years.

Caltagirone’s relationship with the Italian banking industry is also significant: he is the third-largest shareholder in Italy’s top insurer, Generali, with a 6.9% stake. Mediobanca is the largest investor in Generali, holding a 13% stake.

However, Caltagirone has been a critic of Mediobanca, accusing it of exerting excessive influence over Generali through its board and a governance system that allows outgoing directors to appoint their successors. As a long-standing investor and board member at Generali, Caltagirone, along with the late billionaire Leonardo Del Vecchio, unsuccessfully attempted to oust Mediobanca CEO Philippe Donnet in 2022.

Francesco Caltagirone maintains a cordial relationship with the Italian administration. Prime Minister Giorgia Meloni’s conservative government has approved contested corporate governance reforms championed by the tycoon. These reforms, however, have been criticised by fund managers for tightening the terms under which a company’s outgoing board can propose a list of successors.

Through his involvement with MPS, Caltagirone may now find himself in competition with UniCredit CEO Andrea Orcel, who, in November 2024, launched a buyout offer for Banco BPM, shortly after BPM had made its own bid for Anima and acquired a 5% stake in MPS.

A Reuters report stated, “The Treasury in Rome has long favoured combining BPM with MPS, which both partner with Anima, and building a core of long-term shareholders as it re-privatises the Siena-based bank it rescued in 2017. Before UniCredit upended Rome’s plans, Caltagirone, with a 5% stake in MPS, a 5.3% stake in Anima, and 2% of BPM, looked set to become a significant shareholder in the combined entity. In December 2024, Caltagirone named two representatives to the MPS board, including his son Alessandro.”

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Since September 2024, the Italian bank’s hefty stake in Germany’s Commerzbank has sparked a broad debate, leaving many wondering if this move is part of a larger push that raises concerns over competition and operational autonomy across Europe.

Is UniCredit creating a banking behemoth? Or, more worrisomely, is it undermining the independence of financial institutions in the region? This article explores these issues in depth, highlighting the critical events since September 2024 and what the takeover might mean for the European banking landscape.

The initial shockwave

In September 2024, UniCredit surprised market watchers and financial analysts alike when it announced its acquisition of a significant stake in Commerzbank, Germany’s second-largest lender. The move was a clear statement of intent, signalling UniCredit’s ambitions beyond the Italian banking landscape and aiming to expand its foothold into Germany, Europe’s largest economy.

Commerzbank, a historic institution in German finance with deep connections to the country’s Mittelstand, small and medium-sized enterprises, had long prided itself on its independence. Thus, the Italian financial giant’s purchase sent tremors not only through financial markets but also through German political circles. Many stakeholders questioned whether the move foreshadowed a full-scale takeover, and some went as far as to say that Germany’s economic sovereignty was being challenged.

The backdrop to this acquisition involves Germany’s banking challenges over the last decade. Commerzbank, like many other European banks, has struggled with low interest rates, regulatory pressures, and economic uncertainty.

Despite efforts at restructuring and cost-cutting, it remained vulnerable to takeover bids. By acquiring this stake, UniCredit effectively positioned itself as a potential saviour for Commerzbank, which in turn left the German institution questioning its ability to maintain autonomy.

In recent years, Germany’s banking sector has faced considerable turmoil, with both Deutsche Bank and Commerzbank struggling to maintain profitability amid challenging market conditions and evolving regulations.

The government has long been concerned about the stability of its banks, and there have been past discussions about merging Deutsche Bank and Commerzbank to create a national champion. However, such plans never came to fruition, leaving Commerzbank exposed to international acquisition attempts. UniCredit’s strategic move, therefore, filled this gap, offering a potential rescue plan for Commerzbank’s lagging performance while raising concerns about German economic sovereignty.

Commerzbank’s push for independence

In response to UniCredit’s stake acquisition, Commerzbank’s board of directors made a clear intention to retain operational independence. CEO Manfred Knoll has repeatedly emphasised that the bank will continue to operate autonomously, with its German business and customer base remaining intact. In his public statements, Knoll has insisted that the acquisition should be seen as a “strategic partnership” rather than a takeover.

However, the reality on the ground appears more complicated. UniCredit has already hinted at seeking increased influence within Commerzbank, which fuelled speculation that a full takeover may be on the horizon. Internal discussions at Commerzbank have reportedly turned to safeguarding its governance and operational decision-making—an effort to prevent excessive meddling by the Italian stakeholder.

Meanwhile, UniCredit’s CEO, Andrea Orcel, has consistently communicated his belief in “synergy potential” between the two banks, leaving many in doubt about how long Commerzbank’s independence can last under these circumstances.

The internal dynamics within Commerzbank have become increasingly tense. Reports suggest that several members of the management board are wary of UniCredit’s intentions, fearing that their influence might be eroded over time. Additionally, employee representatives on the board have expressed concerns about potential job losses and cultural shifts that could come with increased Italian oversight. Commerzbank’s history of supporting Germany’s Mittelstand businesses has always been a point of pride, and many fear that this focus could be diluted under UniCredit’s leadership.

Sovereignty at risk?

The acquisition of Commerzbank shares by UniCredit did not go unnoticed within German political circles. The takeover has sparked an intense debate among policymakers regarding Germany’s economic sovereignty. In a country where banking institutions are tightly integrated with industrial policy, the prospect of a foreign entity influencing a significant portion of the banking industry has made many politicians uneasy.

Germany’s Finance Minister, Lars Seidel, recently urged caution.

“Our financial institutions are vital to maintaining economic stability in Germany. We must be vigilant about foreign influence undermining our banks’ ability to serve our people and businesses,” Seidel remarked in an October press conference.

Representatives from Germany’s influential Greens and Social Democrats echoed this sentiment, stressing the importance of keeping domestic control over institutions that provide essential capital to the backbone of Germany’s economy—its SME sector.

The issue of foreign ownership has always been a sensitive topic in Germany. The country has a tradition of supporting local industries through close cooperation between banks, businesses, and the government. The Mittelstand—the backbone of Germany’s industrial prowess—relies heavily on accessible and flexible financial services from banks like Commerzbank. A takeover by a foreign bank like UniCredit could alter these relationships, leading to stricter lending criteria or different strategic priorities that might not align with the interests of German enterprises.

Critics of UniCredit’s stake in Commerzbank also include regulatory authorities. BaFin, Germany’s financial regulatory body, has indicated its intent to closely monitor the future moves of UniCredit.

BaFin’s spokesperson noted that “any further increase in ownership or influence by UniCredit will be scrutinised to ensure that German financial stability is not compromised.” This suggests that UniCredit’s ambitions might face stiff regulatory challenges if it attempts to acquire a controlling interest in Commerzbank.

Several members of the Bundestag have raised concerns about the implications of such a takeover for Germany’s long-term financial security. Some have proposed new legislation that would prevent foreign banks from acquiring controlling stakes in key German financial institutions without government approval. This legislative push underlines the discomfort within the political establishment regarding UniCredit’s growing influence over Commerzbank.

Market reactions and antitrust concerns

The market’s response to UniCredit’s stake acquisition has been mixed. While some investors see potential in the collaboration—with increased scale and synergies benefiting both entities—others worry that a hostile takeover may ultimately undermine Commerzbank’s position within the German economy. Commerzbank shares initially surged following the news, largely driven by speculation that UniCredit would soon make an official takeover bid.

However, subsequent statements from both banks have done little to clarify their intentions, leaving uncertainty lingering in the air. UniCredit has yet to file an official bid, but the market’s consensus indicates that it’s only a matter of time. Analysts have noted that UniCredit’s recent capital-raising measures and Orcel’s assertive public remarks suggest a strategy designed to absorb Commerzbank entirely.

This ambiguity has left the shareholders and analysts divided. On one side are those who believe that a merger could be highly beneficial, providing cost savings through shared operations, improved digital capabilities, and a more diversified revenue stream. On the other hand there are those who worry that such a merger could create significant redundancies, particularly in Germany, leading to job losses and discontent among employees and clients.

In addition, the uncertainty has affected Commerzbank’s relationships with some of its major corporate clients. Reports indicate that several large clients are evaluating their options, concerned about the possible changes in management or lending practices if UniCredit takes full control. This apprehension is understandable given UniCredit’s reputation for aggressive restructuring in previous acquisitions, which often included significant cost-cutting measures.

UniCredit’s expansionist drive has also drawn scrutiny from European Union anti-trust authorities, raising questions about potential impact on competition within the banking sector. Critics argue that UniCredit’s push into Germany, if successful, could reduce competition and weaken financial stability, as the consolidation of major banking institutions risks creating entities that are “too big to fail.”

Moreover, European anti-trust regulators are reportedly closely watching developments. The EU’s Competition Commissioner, Margrethe Vestager, has previously expressed concerns about increasing concentration within the banking sector, fearing that a lack of competition could reduce the diversity of financial products available to European consumers and businesses. If UniCredit were to take control of Commerzbank, it would further entrench itself as a European banking powerhouse—potentially giving it undue influence in setting loan terms, business financing, and regulatory lobbying.

The European Central Bank (ECB) has also expressed concerns, highlighting that cross-border consolidation could introduce systemic risks. A consolidated banking giant might become challenging for regulators to manage during crises, due to the varying regulatory environments and economic conditions across Europe.

ECB officials have been careful in their statements, emphasising that while consolidation could lead to greater efficiencies, it could also create complexities that are challenging to resolve during times of economic stress.

There is also a broader concern that cross-border banking takeovers could diminish national resilience to financial crises. A UniCredit-Commerzbank merger, for example, might lead to a situation in which German savings are being used to bail out Italian loans or vice versa—a scenario that could prove politically toxic and economically damaging in times of crisis. This is particularly concerning given the divergence in economic performance between Italy and Germany in recent years, with Italy’s economy remaining more fragile and prone to shocks.

Banco BPM in crosshairs

At the same time that UniCredit has been making waves in Germany, the Italian bank has also launched a 10 billion euro ($10.5 billion) takeover bid for its domestic rival, Banco BPM.

Banco BPM has identified the offer as “unsolicited,” indicating that it is not eager to entertain UniCredit’s advances.

The Banco BPM bid has further contributed to fears of monopolistic ambitions. Industry insiders speculate that the Italian lender is actively working to resist UniCredit’s efforts, but its capacity to do so remains in question. Analysts point out that Banco BPM’s options are limited due to a competitive Italian banking landscape that has been suffering from the same macroeconomic challenges as Commerzbank—making it more vulnerable to an aggressive bidder like UniCredit.

For UniCredit, the Banco BPM bid represents a continuation of its growth strategy, focusing on creating a banking giant that spans multiple European markets. If successful, the merger would become one of Italy’s largest banking institutions, giving UniCredit a dominant position in domestic and international markets.

However, the unsolicited nature of the bid has raised eyebrows, with critics arguing that UniCredit is pursuing an expansion strategy that disregards the wishes of existing stakeholders.

The simultaneous bids for Commerzbank and Banco BPM paint a picture of a UniCredit with grand ambitions. But with these ambitions come questions of overreach. A UniCredit that successfully absorbs both Commerzbank and Banco BPM could potentially control large segments of the European banking landscape, raising further anti-trust concerns. Are we witnessing the birth of a banking giant that could stifle competition, or will the regulatory framework put a leash on UniCredit’s ambitions?

Stakeholder perspectives

As UniCredit attempts to expand its footprint, there are many stakeholders watching anxiously. Among them are Commerzbank’s corporate clients, particularly German SMEs, who are apprehensive about the potential consequences of a UniCredit-controlled Commerzbank.

The concern is that an Italian management approach might not fully align with the needs and expectations of these German companies. Many of these businesses rely on relationship-based banking, something they fear might be lost in a takeover driven by synergies and cost-cutting.

Employees, too, are worried about job security. Both Commerzbank and UniCredit have undergone rounds of layoffs in recent years, as European banks have struggled to improve profitability in an era of low interest rates.

The fear is that a merger would lead to further job losses, particularly in overlapping segments such as retail banking and back-office operations. Labour unions in both Germany and Italy have already voiced their opposition to a potential takeover, calling for guarantees of job security and transparent communication.

The prospect of job cuts is particularly worrying for Commerzbank employees. Labour unions have organised protests and petitioned management to provide assurances regarding employment security.

In a country like Germany, where labour laws are robust and unions have significant influence, any potential layoffs could face serious opposition, potentially complicating UniCredit’s integration plans. Similar concerns have been voiced by Banco BPM employees in Italy, who fear that UniCredit’s history of cost-cutting could spell trouble for their job security.

Competitors, meanwhile, are wary of UniCredit’s strategy. If the Italian lender succeeds in creating a cross-border banking conglomerate, it would potentially dwarf most of its European rivals, creating an imbalance in the competitive landscape.

Deutsche Bank, in particular, has expressed concerns that a UniCredit-Commerzbank combination could lead to distorted market dynamics in Germany, where Commerzbank’s role in financing SMEs is critical to the economy’s health.

Other European banks are watching the developments closely. The potential creation of a mega-bank could prompt a wave of consolidations, as other institutions scramble to maintain their competitive edge. Smaller regional banks, in particular, are concerned that they could be pushed out of the market entirely, as larger entities with more extensive resources and wider networks dominate the playing field.

Is UniCredit’s growth strategy sustainable?

UniCredit’s recent manoeuvres have been ambitious, but they raise questions about the sustainability of such aggressive expansion. Historically, European banking mergers have been fraught with difficulty, often hampered by cultural differences, regulatory hurdles, and the practical challenges of merging operational systems. UniCredit itself has struggled with integrating previous acquisitions, and a merger with Commerzbank would be no less challenging.

Furthermore, UniCredit’s push to consolidate power comes at a time when the European economy faces headwinds, including sluggish growth and rising geopolitical tensions. With interest rates inching higher and inflationary pressures mounting, the path to profitability for European banks remains narrow.

Some analysts believe that UniCredit’s aggressive strategy could backfire, particularly if economic conditions worsen. The complexity of integrating multiple institutions, coupled with the regulatory scrutiny such moves invite, could well create an unsustainable burden.

Cultural integration poses another significant challenge. Commerzbank’s culture, which has traditionally focused on maintaining close relationships with German SMEs and supporting local economic growth, may clash with UniCredit’s more international and cost-focused approach. Such cultural differences have derailed banking mergers in the past, and UniCredit will need to tread carefully to ensure that the value of Commerzbank’s client relationships is not eroded in the process.

UniCredit’s recent capital-raising measures indicate that it is preparing for a significant outlay, but the risk of over-leveraging remains. The banking sector is still haunted by the memory of the 2008 financial crisis, and regulators will be keen to ensure that any merger does not create systemic risks. If UniCredit’s growth strategy proves unsustainable, it could have far-reaching consequences not only for the bank itself but also for the broader European financial system.

A new dawn for European banking?

The unfolding story of UniCredit’s stake acquisition in Commerzbank—as well as its bid for Banco BPM—is emblematic of broader challenges and questions facing the European banking sector today. On the one hand, consolidation may offer benefits such as improved efficiencies, cost savings, and a stronger balance sheet to compete with the giants of Wall Street. On the other hand, the spectre of reduced competition and the potential loss of autonomy for key national institutions looms large.

The European Commission will likely be at the centre of this debate in the coming months. Regulators will need to weigh the benefits of consolidation against the potential risks to competition, financial stability, and national sovereignty. The stakes are high: if UniCredit is allowed to proceed unimpeded, it could set a precedent for other banks, leading to a wave of consolidation that might leave Europe with just a handful of mega-banks controlling the majority of assets and lending.

For now, UniCredit has sent a clear signal—it’s intent on becoming a leading player on the European stage, regardless of the obstacles. Whether this leads to a more robust European banking sector or a fragile one dominated by institutions that are “too big to fail,” remains to be seen.

If the ambitions of UniCredit succeed, it could herald a new era of European banking, marked by fewer but more formidable players capable of competing on the global stage. But with this potential comes a real and pressing risk: these new banking behemoths may prioritise profitability over the diverse needs of the European economy. As the story unfolds, the key question remains—will the push for growth lead to a stronger, more unified banking landscape, or will it undermine the very competition that has driven Europe’s financial sector for decades?

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CEO Giuseppe Castagna stated that the UniCredit bid would result in the loss of over 6,000 jobs at Banco BPM, despite UniCredit’s plans to reduce expenses by more than a third.

“We are a big autonomous bank, an Italian bank with a strong vocation of being close to our regions and to the small and medium-sized companies that make up the backbone of our country,” Giuseppe Castagna said.

Banco BPM has rejected UniCredit’s 10-billion-euro (USD 101.5 billion) offer, claiming it undervalued the bank, bound it to strategic agreements, and increased shareholder risk.

The second-biggest bank in Italy, UniCredit, has a stake in Commerzbank in Germany, which was considered its top acquisition target. Investors were taken aback by its sudden shift from Germany to Italy with the latest acquisition attempt directed at Banco BPM, which seemed to catch the Italian government off guard.

The Italian government, which had advanced plans for a merger of BPM with rival Monte dei Paschi di Siena to create a third force in Italian banking behind UniCredit and Intesa Sanpaolo, is also thrown for a loop by UniCredit’s move.

UniCredit CEO Andrea Orcel is now planning to meet with Credit Agricole management to discuss the future of the lenders’ partnerships after the Italian bank offered to buy rival Banco BPM, Reuters reported.

“Credit Agricole is crucial to the success of Orcel’s bid for his smaller peer because it owns 9% of Banco BPM and because UniCredit has an agreement to sell funds distributed by Amundi, which Credit Agricole owns, to its clients in Italy,” the media house stated.

UniCredit’s bid for Banco BPM has also managed to catch the attention of the Italian banking sector’s main union, as it raised concerns about the potential impact of the deal on jobs.

“There is great concern about the employment fallout that could result from the deal. The numbers circulated so far are worrying and call for deep thought,” FABI union said in a statement, while adding that the offer was a “market transaction, in a phase of radical changes in the banking sector, both at a national and European level”.

Despite UniCredit’s surprise bid for Banco BPM’s acquisition is creating some sort of discomfort in the Italian banking circle, as per Reuters, the venture was always on the wish list of UniCredit CEO Andrea Orcel (a veteran dealmaker himself).

Even though many are terming UniCredit’s 10 billion euro (USD 11 billion) all-share offer for Banco BPM as an “Unsolicited One,” Orcel justified the move to the investors, by stating that he had to act because of an acceleration in Italy’s financial sector consolidation, where the government in November 2024 offloaded a 15% stake in Monte dei Paschi di Siena (MPS), potentially paving the way for an eventual tie-up between MPS and Banco BPM.

Buying Banco BPM will help Orcel reduce the gap with Intesa Sanpaolo, which in 2020 leapfrogged UniCredit to become Italy’s biggest bank by assets by buying northern mid-tier bank UBI and securing more than a fifth of the domestic market. At the end of September 2024, Intesa had 949 billion euros in assets, followed by UniCredit (for which Italy is the main market among the 13 where it operates) at 800 billion euros and Banco BPM at 195 billion euros.

“Banco BPM has three-quarters of its more than 1,400 branches in Italy’s richer north. It accounts for 13% of all bank branches in Lombardy, where UniCredit is weak despite having its headquarters in Italy’s financial and fashion capital Milan. Additionally, Banco BPM has an 8% market share in Veneto, another wealthy region in the northeast, and 10% in Turin’s Piedmont’s region,” Reuters reported.

After a merger, the combined entity’s market share will reach 20% in several economically crucial regions, such as Lombardy (24%), Veneto (21%), and Emilia-Romagna (21%), without creating dominance in any specific province, calculations by Italian broker Intermonte showed.

Both UniCredit and Banco BPM want to grow net fees and be more like Intesa, where fees exceed 40% of overall revenues thanks to its in-house insurance and asset management. UniCredit is bringing in-house its life insurance operations, something which Banco BPM has already done.

As per Orcel, cost savings from a deal with BPM could reach 900 million euros a year before taxes and 800 million after taxes, and would only minimally affect the branch network. Additional revenues are estimated at 300 million euros a year. The return on investment for UniCredit from a deal is expected to surpass 15%, with earnings per share increasing by a “high single-digit” percentage within a couple of years.

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Speaking to the influential Italian business group Confindustria recently, the Prime Minister referred to the “forced conversion” of the whole EU market for new light vehicle sales to electric propulsion within ten years as “not very wise as a plan.”

Giorgia Meloni denounced the “disastrous effects” of the European “Green Deal” and its “ideological approach,” saying that “the green transition cannot mean losing thousands of jobs, or demolishing entire industrial segments that provide wealth and employment.”

Her harsh criticism comes as calls for an early, urgent review of the European Union’s automobile pollution regulations, which effectively equate to a prohibition on the sale of new combustion engines by 2035, are intensifying from Italy, Germany, and certain eastern European nations like the Czech Republic, which produce vehicle components.

Adopted in 2023, the regulations represent one of the most contentious aspects of the bloc’s ambitious Green Deal climate policy. Automakers and the governments of countries that produce cars are requesting a postponement of the prohibition or additional latitude in the regulations, including allowances for using carbon-neutral e-fuels.

The liberal Free Democratic Party member Volker Wissing, Germany’s transport minister, warned at a transportation industry trade show this week that “Europe is losing credibility because it is setting targets that it can’t even meet itself.”

While acknowledging the importance of goals, Wissing suggested they should be reasonable and “possible to implement in practice.”

Conservative parliamentarians, including those from Ursula von der Leyen’s own European People’s Party, have asked Brussels to reconsider the restriction when it comes up for revision in 2026.

Italy is even attempting to move up the review process to the following year, citing a worsening crisis in its auto industry due to a decline in production and consumer demand for electric cars.

The number of passenger cars produced in Italy in the first seven months of 2024 was merely 225.000, a decrease of 35.5% from the same period the previous year, according to the National Auto Industry Supply Chain Association, which represents the country’s auto and component manufacturers.

“The Green Deal in its original form has not succeeded,” Italian Industry Minister Adolfo Urso declared at a recent business gathering, as he added, “The car industry in Europe is crumbling. We cannot wait another two years to make decisions.”

The historic plant in Turin, home of Stellantis, the worldwide corporation that owns the Fiat brand and is the largest automaker in Italy, will be temporarily suspending production of electric Fiat 500s due to low demand.

Rather than dictating a mandatory transition to electric vehicles, Giorgia Meloni contended in her speech to the business community that the EU ought to have adhered to the concept of technological neutrality, letting each member state determine its strategies for reducing CO2 emissions.

In support of her claim that “we do not own the raw materials and do not control the value chain” for EVs, she stated, “We want to safeguard European industrial capacity.”

Giorgia Meloni declared, “I promise to keep working hard to make these corrections. With common sense, we want to reduce polluting emissions and utilise all available technology to do so, potentially saving tens of thousands of jobs along the way.”

In an interview with the Financial Times, Teresa Ribera, the European Union’s likely next executive vice president in charge of green policy, claimed that the establishment of the 2035 phaseout date for combustion engines had provided the European auto industry with the “stability and reliability” required to develop the electric vehicle ecosystem.

In September 2024, the automotive trade association ACEA released a presentation stating that, in 2023, “EU car sales grew for the first time since 2019 with battery-electric cars virtually double their market share.”

However, the latest sales numbers now cast a shadow on the continent’s EV dreams. New car sales in the European Union fell 18.3% in August to their lowest in three years, dragged by double-digit losses in major markets Germany, France and Italy.

Sales of fully electric cars slumped 43.9% in August, falling for the fourth consecutive month, as the bloc’s biggest electric vehicle markets Germany and France recorded drops of 68.8% and 33.1% respectively, the European Automobile Manufacturers Association (ACEA) said.

Car sales in Europe have now dropped well below pre-COVID-19 levels, with carmakers such as Volkswagen warning that the trend might not change in the foreseeable future. EV sales growth too has slowed, in part due to diverging policies on green incentives, while regulators have imposed hefty tariffs to try to keep cheap Chinese cars from flooding the continent’s markets.

Sales of battery electric and plug-in cars fell by 43.9% and 22.3% respectively in August, while those of hybrid-electric cars rose 6.6% to a market share of 31.3%. Registrations at Europe’s three largest carmakers Volkswagen, Stellantis and Renault all fell from a year earlier, by 14.8%, 29.5% and 13.9%, respectively. Sales at Tesla (TSLA.O), dropped 43.2%, and those for China’s SAIC Motor were down 27.5%.

The market share of hybrid electric cars has increased in the European Union in recent months, as buyers see them as an affordable compromise between all-combustion and all-electric.

To inject new stimulus into the market, Germany agreed in September 2024 on tax deductions of up to 40% for companies on their sales of electric cars, after a 2023 campaign ending a subsidy programme designed to help speed up the green transition.

The post IF Insights: Amid plummeting sales, European Union’s EV dreams get ‘Italian Reality Check’ appeared first on International Finance.

According to Klaus Roewe, Lilium intends to finalise the site next year and anticipates investing “250 million to 300 million plus” euros (USD 271–325 million) in the final assembly line and increasing production in the world’s largest economy. However, the business “certainly needs financial support” to start up the assembly line, added the former Airbus employee.

Lilium’s liquidity as of the end of March was 102 million euros, but that was before the company raised the USD 114 million in capital required to complete its first manned flight. Lilium is also in discussions with the German and French governments to raise funds through loans, with the latter condition being that Lilium develops and grows its industrial presence in France.

Airlines and automakers have expressed interest in Lilium, one of the many new players in the electric vertical take-off and landing (eVTOL) aircraft market. Executives and analysts at the Farnborough Airshow pointed out that the industry still has a lot of technological and regulatory issues to work out before it can start flying people and turning a profit.

In 2024, Lilium’s United States-listed shares dropped 21.7% to 92 cents, while competitors Archer Aviation and Joby Aviation decreased 25.73% and increased 0.45%, respectively.

Established in 2015, Lilium aims to serve the regional transport market by providing a jet capable of carrying up to six passengers with a range of 250 kilometres (155 miles), in contrast to many competitors who primarily focus on shorter routes between cities and suburbs. Lilium hopes to have its jet operational by 2026.

Company And The Visionary

Through eVTOL jets, Lilium wants to revolutionise air travel. Talking about this further, Klaus Roewe told CNBC Tech in April 2024, “Revolutionise means make it absolutely zero emission. We want to make a regional plane that has a decent transport capacity to have a meaningful effect on CO2 emission reduction.”

Less than a decade after being founded by four university students, the venture has emerged as one of Europe’s leading eVTOL companies. It made headlines in September 2022, when Lilium’s prototype performed a full transition from hover to wing-borne flight at a test facility in Spain. Lilium is targeting entry into service by 2026.

“There was a lot of efficiency gain made by the structure, by the systems, notably by the engines. However, you can see it’s now coming to a kind of plateau. Getting another 20%-30% out, in terms of CO2 reduction, is very, very difficult. So, you have to make a leapfrog in terms of technologies,” Klaus Roewe added.

Lilium, which is backed by the likes of China’s Tencent and Earlybird Venture Capital, has already started taking orders from the premium market. One jet will cost about USD 9 million. The company is also developing a six-seater version, which will set a buyer back about USD 7 million.

The eVTOL space is fiercely competitive, with more than 400 companies and innovators registering designs on the World eVTOL Aircraft Directory.

However, Daniel Wiegand, Lilium’s co-founder and chief engineer for innovation and future programmes, said the company has an offering that is different from its rivals.

“Most of our peers are using propellers. These propellers have the advantage that they’re a bit simpler to design and they need less power in take-off and landing, but they’re less efficient in the cruise flight,” Wiegand said, while adding, “We are focused on regional flights. We have picked the jet technology because it yields longer range.”

Since October 2022, Klaus has been the Chief Executive Officer and Executive Director of Lilium. He joined the venture after a thirty-year career at Airbus, where he led the European aerospace giant’s most successful A320 Family and A320neo programmes.

His initial positions with Airbus, from 1992 to 2000, were in the engineering of the A320 Family and composites manufacturing. He held several managerial roles in the A320 Family Programme from 2003 until 2008.

In addition, he served as Senior Vice President Cabin and Cargo from 2008 to 2010, when he was in charge of all Airbus aircraft interiors, from A318 to A380.

Lilium On A Roll

The venture has announced that it has signed a contract with Saudia Group, the Kingdom of Saudi Arabia’s airline, to sell up to 100 eVTOL aircraft. The deal is a “firm order” for 50 Lilium jets, with the option to buy up to 50 more.

The agreement builds on a 2022 memorandum of understanding between Lilium and Saudia to investigate potential uses of battery-powered multirotor aircraft to address transportation issues in the region. It also includes a schedule of deposit and pre-delivery payments, timeline of future deliveries, guarantees on aircraft performance, and provisions on spare parts, maintenance, and repairs. In addition, the parties intend to sign a comprehensive “Lilium POWER ON” agreement for aircraft fleet maintenance and support services.

“Saudia Group expects to receive the first jets in 2026, for which operations will be managed and run by Saudia Private, a subsidiary of Saudia Group. The Lilium Jet will feature large, premium cabins with capacity for up to six passengers plus luggage,” reported the T3 News Network, while adding further, “This purchase agreement with Saudia Group marks the latest addition to Lilium’s extensive order pipeline that now consists of 106 firm orders and reservations, 76 options, and roughly 600 aircraft under MOU. Lilium is in advanced discussions with additional global carriers that are looking to reduce carbon emissions and electrify regional air travel.”

Talking about Lilium’s latest business moves in the United States, the start-up plans to begin studying possible air-taxi assembly sites in the country to have a plant up and run by early 2029 to get a foothold in one of the world’s largest markets.

Meanwhile, SEA, the operator of Milan’s airports, Sky Sports Infrastructure (Sky Sports) and Lilium have entered into a MoU, laying the foundations for a passenger eVTOL network in the Lombardy region, northern Italy.

The Lombardy region is an important location for the partnership, as the area houses nearly a fifth of Italy’s population and has over 37 million visitors annually. The MoU will uniquely complement regional air mobility, by providing faster and low-emission travel between key locations.

The parties will launch a vertiport network with operators of Lilium Jet as soon as 2027. SEA is the majority shareholder, providing airport management capability and knowledge of the region’s aviation landscape. Lilium will provide aircraft expertise as well as their Lilium Jet, which has been designed for capacity, long operational range at high speed, minimal noise and zero emissions.

The agreement will see the parties develop regional air mobility routes that serve key locations across Lombardy. The first route will connect Milan Malpensa Airport, the largest international airport in northern Italy, which transported over 26 million travellers last year, and Milan city centre.

For the development and operations of vertiports in Lombardy and Italy, SEA, Skyports and their shareholder 2i Aeroporti are in the process of establishing a joint venture company. Lilium has also announced a partnership with Groupe ADP to collaborate on infrastructures for the Lilium Jet in Europe, the Middle East, and Asia. Groupe ADP, which operates and develops 23 airports around the globe with its two major partners TAV Airports and GMR Airports, will work with Lilium to make its vertiports accessible to Lilium’s customers.

As an integral part of the “Pioneers 2025 Innovation Roadmap,” Groupe ADP will be delivering the first vertiport network in Europe for eVTOL aircraft like the Lilium Jet on its airports’ premises and with a strong foothold in Paris.

Groupe ADP is developing in particular comprehensive vertiports at two prominent airports in the Paris region, Paris-Charles de Gaulle and Paris-Le Bourget, as well as a temporary site in the heart of Paris in 2024. Groupe ADP’s vertiports will significantly bolster the Lilium network in France and establish Paris as an important regional hub for Lilium Jet operators.

In addition to their flagship locations in France, Groupe ADP operates an extensive network of international airports around the world including key sites in the Kingdom of Saudi Arabia, Turkey, and India. These sites will be crucial for operators of the Lilium Jet as they work to bring regional electric aviation to passengers starting in 2026.

The post Business Leader of the Week: Under Klaus Roewe’s leadership, Lilium accelerates towards becoming eVTOL giant appeared first on International Finance.

As stated by the European Automobile Manufacturers Association (ACEA), double-digit drops in Germany, the Netherlands, and France were not countered by an increase in battery electric car registrations of 50.4% and 117.3%, respectively, in Belgium and Italy.

By The Numbers

Leading European automakers are placing their bets on an increase in car sales in 2024, even though demand for electric vehicles (EVs) has cooled after several years of rapid growth and despite caution about challenging conditions in the global market.

According to ACEA data, sales of plug-in and battery electric vehicles in the EU decreased by 19% and 1%, respectively, in June.

In contrast, sales of hybrid electric vehicles increased by 26-4%. The number of battery-electric car registrations increased by 1.3% in the first half of 2024. Around 50% of all new passenger car registrations in the EU in June were EVs, whether they were fully electric, plug-in hybrids, or full hybrids. This represents an increase from 47.5% of registrations in June of last year.

In June, car registrations increased by 4.7%, 0.4%, and 6.2% at Volkswagen, Stellantis, and Renault, the three biggest automakers in Europe.

As part of a last-minute 2024 budget agreement, Germany, the largest EV market in the bloc, ended early subsidies for purchasing EVs in December.

“Germany is the sick man of Europe when it comes to electric cars,” said Lucien Mathieu, cars director at European campaign group Transport & Environment (T&E), adding that markets with predictable incentives for EV adoption were “reaping the rewards,” Zawya reported.

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Understanding SWIFT

Using a defined code system, financial institutions use SWIFT to transfer data and instructions safely. Despite being essential to the world’s economic infrastructure, SWIFT is not a financial institution. Instead of holding or moving assets, SWIFT enables member institutions to communicate securely and effectively.

In November 2022, the network’s more than 11,000 international SWIFT member institutions processed an average of 44.8 million daily messages.

A ‘Bank Identifier Code’, or BIC, is a special eight or 11-character designation SWIFT assigns to each financial institution. Other names for the BIC include the SWIFT code, SWIFT ID, and ISO 9362 code.

Let’s examine the Italian bank UniCredit Bancato better comprehend the code assignment process. The eight-letter SWIFT code for it is UNCRITMM.

The institution code for UniCredit Banca is UNCR, indicating its affiliation with UniCredit. The country code IT signifies that the bank is located in Italy. The city code MM specifically represents Milan, one of the major cities in Italy. Additionally, organisations may assign unique codes to individual branches, denoted by the last three characters.

A client goes to a nearby Bank of America branch to wire money to his friend in Venice, Italy. He delivers Venice’s UniCredit Banca branch details and his Italian friend’s account number. The special SWIFT code is part of this information.

Over the safe SWIFT network, Bank of America transmits a payment transfer message to the UniCredit Banca branch. After receiving the SWIFT notification of the incoming payment, Unicredit Banca will clear and credit the funds to the Italian friend’s account.

Despite SWIFT’s effectiveness, remember that it is merely a communications system. Using SWIFT to send money to family and friends who live overseas, book a holiday rental, pay for school, or purchase other services or goods would be best. Sending money using SWIFT follows the same steps as sending a wire transfer.

The SWIFT procedure

To initiate an international wire transfer, you will need the recipient’s bank name, address, and country, the routing code of the recipient’s bank, the recipient’s full legal name, current address, and account number, the SWIFT Code of the recipient’s bank account, your government-issued ID, the purpose of sending funds and any other documents/information required by your bank.

Once you have gathered all the necessary information, you can proceed to your bank or log into your bank’s online system. Request an international wire transfer and provide the required details, including the recipient’s bank information, account details, and SWIFT Code. You may also be asked to specify the country to which you send the funds and the currency you wish to send in.

Understanding all the fees and limits associated with sending cash abroad is essential. Your bank should provide this information, including applicable transfer fees and exchange rate charges. Make sure you are aware of these costs before proceeding with the transfer.

Once you have confirmed the transaction, your bank will use the SWIFT network to send the money to the recipient’s bank. Keeping a transaction record, such as a receipt or confirmation, is advisable for your reference.

Remember, the specific process and requirements may vary depending on your bank and the country involved in the transfer. It is always a good idea to consult with your bank or refer to their guidelines for accurate instructions on initiating an international wire transfer.

If you are receiving money, you must obtain the sender’s SWIFT account number from their bank. These SWIFT numbers may change depending on whether you’re receiving money in U.S. dollars or another currency.

Knowing SWIFT’s history

The only method of message confirmation for international cash transfers before SWIFT was Telex. Telex had difficulties because of its slow speed, security issues, and free message format.

In other words, Telex needed a standard set of codes for identifying banks and describing transactions like SWIFT does. Telex senders were required to describe each transaction in terms that the receiver would understand and carry out. This caused a lot of human mistakes and slowed down the processing.

Support for a shared network “began to gain institutional shape” in the late 1960s, when the Société Financière Européenne (SFE, a group of six significant banks with headquarters in Luxembourg and Paris) started a “message-switching project,” claims the London School of Economics.

To resolve these issues, 239 banks from 15 countries developed the SWIFT system in 1973. Worldwide Interbank Financial Telecommunication, with its headquarters in Belgium, would send and receive financial messages promptly and safely. In 1977, SWIFT’s communications services went live.

The SWIFT network was initially created to facilitate communication, specifically for Treasury and correspondent transactions. However, due to the robustness and scalability of its message format design, SWIFT gradually expanded its services to include a wide range of participants in the financial industry.

Today, SWIFT serves various financial entities. Securities dealers, asset management companies, clearinghouses, and depositories utilise it. Exchanges and corporate business houses rely on SWIFT for their financial communication needs.

Furthermore, SWIFT has become an essential platform for treasury market participants and service providers. Individuals and businesses needing to make international or money transfer transfers often utilise SWIFT for secure and efficient transactions. Foreign exchange and money brokers also rely on SWIFT for their operations.

The evolution of SWIFT from its original focus on treasury and correspondent transactions to its current wide-ranging services demonstrates the network’s adaptability and the recognition of its secure and reliable communication infrastructure by participants in the global financial industry.

SWIFT, which represents various businesses globally, is a member-owned cooperative whose shareholders are specific member financial institutions. The central banks of the ‘Group of Ten’ nations regulate SWIFT. Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States are among them. Along with other participants, including the U.S. Federal Reserve, the European nation of Belgium serves as the primary overseer.

All nations rely on SWIFT to carry out quick, seamless, and secure communication; therefore, they are incentivised to maintain good standing with the organisation. While central banks from the G10 nations manage SWIFT, it is a neutral institution that serves all its members’ interests.

SWIFT solutions

The SWIFT system provides a wide range of services that assist businesses and consumers in carrying out smooth and precise business transactions. The list below includes a few of the services offered.

SWIFT connections provide access to several applications, such as real-time instruction matching for treasury and foreign exchange transactions, banking market infrastructure for processing payment instructions between banks, and securities market infrastructure for processing clearing and settlement instructions for payments, securities, foreign exchange, and derivatives transactions.

The dashboards and reporting tools that SWIFT has released allow its clients to observe the messages, activity, trade flow, and reporting in a dynamic, real-time manner. The reports allow for filtering by region, nation, message type, and other relevant criteria.

SWIFT also provides reporting and tools for Know Your Customer (KYC), sanctions, and anti-money laundering (AML), focusing on services related to financial crime compliance.

Furthermore, the foundation of SWIFT’s operations is providing a scalable, secure, and dependable network for efficiently transferring messages. SWIFT offers various products and services that let its end clients send and receive transactional messages via its numerous messaging hubs, software, and network connections.

SWIFT’s revenue generation method

Depending on share ownership, many kinds of SWIFT Members exist. All members must pay a one-time joining fee and annual support fees, which vary by member class.

Additionally, SWIFT charges a fee to users based on the message’s length and kind. Depending on the bank’s usage volume, these fees change. There are various price tiers available for banks producing different communication volumes.

Due to its extensive data history, SWIFT has also introduced the additional services mentioned above. These services, which give SWIFT other revenue sources, include business intelligence, reference data, and compliance services.

Issues with SWIFT

Most SWIFT clients handle large volumes of transactions, for which manual instruction insertion could be more practical. SWIFT message generation, processing, and transmission automation are becoming increasingly necessary. However, this comes with a price and higher operational costs.

Even though SWIFT successfully offers software for automation, it also has a price. For most of its clientele, SWIFT may have to go into these issue areas. Automated solutions in this area may open new revenue sources for SWIFT and maintain client interest over time.

The potential use of SWIFT membership as a possible financial censure against members has repeatedly come up in recent years. For instance, in 2012, the European Union enacted sanctions on Iran that required SWIFT to cut off banking services to sanctioned Iranian institutions.

EU Council Regulation (EU) 833/2014 forbade SWIFT and other financial messaging companies from offering services to certain Russian firms and subsidiaries beginning in 2022. SWIFT, which is based in Belgium, is subject to EU laws. The EU Council Regulation (EU) 765/2006 forbade SWIFT from conducting business with specified Belarusian firms and subsidiaries. The upshot was the disconnection of both Russian and Belarusian firms from SWIFT.

The global financial system cannot function without SWIFT. In November 2022, the network’s more than 11,000 international SWIFT member institutions processed an average of 44.8 million daily messages.

Furthermore, the majority of credit unions and many smaller American banks do not participate in the SWIFT network, which is the monopoly of colossal global financial institutions.

However, banks can send money without SWIFT, but doing so frequently involves manual settlement and relies on older, slower technologies to handle the payments. Due to this, foreign fees are more challenging, time-consuming, expensive, and uncertain.

In the worldwide processing of transactional messages, SWIFT has maintained its leadership position. Its recent expansion into new markets, including reporting utilities and data for business intelligence, demonstrates its desire to keep up its inventive streak. SWIFT appears certain to maintain its position as the market leader in the short- to mid-term.

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