Brussels extends bank aid rules

European banks will be given lighter treatment for seeking state capital as a result of the sovereign debt crisis and will pay smaller fees for guarantees from cash-strapped countries under changes to EU state aid laws announced on the 1 December 2011.

Joaquín Almunia, the European Competition Commissioner, unveiled an extension of the special state aid regime for financial institutions that will more explicitly account for the extreme market strains on eurozone sovereigns.

European Commission: RAPID: Press Release: IP/11/1488: State aid: Commission extends crisis rules for banks http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/1488&format=PDF&aged=0&language=EN&guiLanguage=en

ESO: Background Information: EU delays stricter bank state aid rules http://www.europeansources.info/record/eu-delays-stricter-bank-state-aid-rules/

European Commission: DG Competition: State aid: State Aid control: State aid reform http://ec.europa.eu/competition/state_aid/reform/reform.html

---