Press Release: State aid: Commission endorses rescue aid for German HSH Nordbank

The European Commission endorsed, under EC Treaty state aid rules, a €3 billion recapitalisation and €10 billion risk shield for the German bank HSH Nordbank. Germany notified the measures as urgent rescue aid to preserve financial stability. The Commission authorised the measures as temporary rescue aid because they constitute an adequate means to rescue a bank whose failure would have been likely to provoke a serious disturbance in the German financial sector. The Commission therefore concluded that the measures were in line with its Communications on state aid for financial institutions during the current financial crisis and as such compatible with EC Treaty rules that allow state aid necessary to remedy a serious disturbance of a Member State's economy (Article 87.3.b). Within three months, Germany has to submit a viable plan for the future of HSH Nordbank.