Press Release: State aid: Commission clears state aid to rescue and restructure Fortis Bank and Fortis Bank Luxemburg

he European Commission approved under EC Treaty state aid rules, a support package granted between 29 September and 5 October 2008 by Belgium, Luxemburg and the Netherlands to Fortis Bank and Fortis Bank Luxemburg following the crisis on the financial markets. Given Fortis Bank's size, market share in the retail sector and the prevailing crisis on the financial markets, the bank's collapse would have given rise to a systemic risk to the financial sector. The measures have restored the long term viability of the bank and are limited to the minimum necessary. To limit distortions of competition, Fortis Bank has, in particular, sold its Dutch operations, which accounted for 40% of its size, and thereafter was sold to BNP Paribas. The aid is therefore, compatible with the EU rules on state aid (Article 87(3)(b) of the EC Treaty), as explained in the Communication on how these rules apply to banks in times of crisis.