MADRID, May 10 (Reuters) - Spanish Economy Minister Carlos Cuerpo said on Friday concerns over banking market concentration prompted by BBVA's hostile takeover bid for smaller rival Sabadell would ease once the European Union's banking union was a reality.

"Once the relevant market is the EU market, then in terms of competition we can ease our concerns for this increase in scale of the relevant banks and actors at a European level. We need to continue working on reaching that scale," he said in an interview with CNBC.

Cuerpo said on Thursday the Spanish government opposed BBVA's hostile bid for Sabadell as it is concerned the Spanish market would be dominated by only few large banks. (Reporting by Inti Landauro and Matteo Allievi; Editing by Mark Potter)