Regering-Zapatero ongemakkelijk bij voornemens Duitse energiegigant voor overname energiebedrijf Endesa (en)

Spain has expressed uneasiness on the planned takeover of its energy firm Endesa by German company E.On, highlighting EU governments' fight for the protection of strategic national industries.

Germany's energy giant E.On on Tuesday (21 February) offered €29 billion for Spanish energy group Endesa in a bid that could create the world's largest energy supplier.

But the planned move frustrates the Spanish socialist government's efforts to create its own national energy champion, the country's prime minister Jose Luis Zapatero indicated on Wednesday.

"I understand that Germany wants to have a strong global energy company, but so does Spain," Mr Zapatero said despite German chancellor Angela Merkel notifying him of E.On's intentions in advance, press reports indicate.

The Spanish government actively backed an earlier bid on Endesa by Spain's Gas Natural, which would have created a Spanish firm large enough to compete on the global market.

But Gas Natural's offer was topped by E.On by a factor of a third on Wednesday, with the Germans offering 7 billion euro more for Endesa.

Mr Zapatero said speaking before the Spanish parliament that Endesa was a "strategic" asset for the Spanish economy.

"I want to underscore that the markets are very important, but for the government, the citizens are more important," he added.

"The international rules of the game are decisive, and they must be compatible with reasonable national interests."

However, the Spanish leader also indicated that Spain would not use its "golden share" that it has in Endesa to veto a takeover by E.On.

"The government has no plans to do anything that involves such extremes," Mr Zapatero was quoted as saying.

"It's an option but it is not advisable except in truly exceptional circumstances which, right now, we don't contemplate."

The European Commission had earlier on Wednesday warned not to make use of the veto option.

A spokesman for the EU's internal market commissioner Charlie McCreevy said he "would very much like to remind" the Spanish authorities not to use its golden share in Endesa to block the planned merger.

E.On's bid on Endesa appears to be part of a broader recent trend of cross-border takeover moves by large companies, supported by Brussels but resisted by member states.

Italy's biggest power group Enel indicated on Wednesday that it could launch a bid for the French energy firm Suez.

The move is set to raise eyebrows in Paris, which has together with Luxembourg launched a fierce battle to prevent the takeover of European steel firm Arcelor by Mittal, which is owned by an Indian national.

Paris and Luxembourg have quickly adopted laws to prevent the takeover, leading Mr McCreevy to say the moves were out of step with European law, according to the IHT.

The commission has also threatened the Polish government with legal steps if Warsaw continues to resist Italian bank Unicredito's plans to merge Polish banks Pekao and BPH.

On top of this, Brussels has spoken out against creating national energy champions, as the model clashes with its vision of a single European market for energy.