The Commission warned this week it would enforce EU competition rules in Germany’s public banking sector…

Date: 20/07/2000

... after talks between the country's federal and regional governments on the issue broke down. The regions are resisting moves by the Commission to investigate the guarantees they offer to the Landesbanken, which private sector rivals say distort competition, and have threatened to use their voting power in Germany's parliament to block agreement on a new EU treaty later this year. But a spokesman for Competition Commissioner Mario Monti said he “had no alternative but to apply Community law”, adding that the EU executive could be ready to launch formal proceedings against Germany soon after the summer break.