Press Release: Commission requests Germany to bring State guarantees for public banks into line with EC law

After considerable negotiations with the German government on the system of State guarantees for public law credit institutions ('Anstaltslast' and 'Gewährträgerhaftung'), the European Commission adopted a decision, on 8.5.01, proposing 'appropriate measures' to the German Government to make the guarantee system compatible with the State aid rules of the EC Treaty. The German Government was requested to submit its proposals for the changes by the end of September 2001.