Sélecteur de langues
Brussels, 12th December 2008
The European Commission has approved, under EC Treaty state aid rules, modifications to the German rescue package for financial institutions, initially approved by the Commission on 27 October 2008 (see IP/08/1589). The amendments concern mainly the remuneration of recapitalisation measures, in line with the Commission's Communication on recapitalisation (see IP/08/1901). Although basic remuneration rates may, in certain cases, be below the rates foreseen in the initial package, the price for the state participation increases in proportion to its duration, so as to incite beneficiaries to pay back the state support as soon as market conditions permit it. This will ensure the proportionality of the amended measures and contribute to the adequacy of the whole scheme to remedy a serious disturbance in the German economy. The Commission therefore concluded that the German rescue package, as amended, was compatible with Article 87.3.b of the EC Treaty.
Competition Commissioner Neelie Kroes said: "The present decision demonstrates again, how quickly and effectively the Commission can adapt to changing conditions in the financial markets with good cooperation from Member States. On this basis we have now finally found an acceptable solution in order to allow confidence building and credit stimulating measures in Germany including the recapitalisation of Commerzbank".
On 11 December 2008, Germany informed the Commission about a set of modifications, it intended to make to the German support package for financial institutions (see IP/08/1589). These amendments are aimed at adapting the package to the Commission's Communication on recapitalisation (see IP/08/1901) and to changes in the fast evolving financial markets.
The main amendments concern the following basic features of the recapitalisation measures:
Further amendments concern the possibility of extending the duration of debt guarantees of up to five years under certain circumstances and for limited amounts. Moreover, in case a guarantee is given for collateralised claims the remuneration can be reduced.
The Commission is satisfied that as a result of its dialogue with the German authorities, the banking rescue package has been adjusted to changing market conditions, including a reduction of interest rates by the European Central Bank. The adjusted package takes into account the latest guidance of the Commission and may as a result also attract fundamentally sound banks. The Commission understands that the recapitalisation conditions for Commerzbank are being amended so as to comply with the new scheme.
The non-confidential version of the decision will be made available under the
case number N625/2008 in the State Aid Register
on the DG Competition
website once any confidentiality issues have been resolved. New publications
of state aid decisions on the internet and in the Official Journal are listed in