Press Release: State aid: Commission approves rescue aid for WestLB

The European Commission authorised, under the EC Treaty’s rules on state aid, a risk shield granted by the State of North Rhine-Westphalia to protect WestLB against the volatility of its €23 billion structured investment portfolio, following difficulties because of the subprime crisis in the financial markets. The Commission's investigation found that the risk shield constituted state aid, but that the aid is in line with EU rules on rescue aid because strict conditions ensure that the aid is limited in time and reversible. The approval of the rescue aid does not prejudice the Commission's assessment of the restructuring plan Germany has committed to submit by 8th August 2008.