Press Release: State aid: European Commission temporarily authorises additional state support for Hypo Real Estate and extends scope of ongoing investigation

The European Commission has temporarily authorised under EU State aid rules a transfer of approximately €200 billion of toxic and non-strategic assets into a winding-up institution, and additional State guarantees of up to €40 billion for the German bank Hypo Real Estate (HRE), for reasons of financial stability. The Commission will take a final view on the compatibility of these measures with EU state aid rules in the context of its ongoing investigation into the restructuring of HRE. The Commission has therefore extended the scope of the investigation to encompass the new measures.