Press Release: State Aid: Commission requests Ireland to end unlimited guarantee for Voluntary Health Insurance Board (VHI)

The European Commission has proposed appropriate measures to Ireland under EU state aid rules to abolish the unlimited state guarantee enjoyed by the Voluntary Health Insurance Board (VHI) by the end of 2013. VHI is a statutory body offering voluntary health insurance.

Its statute does not provide for liquidation or winding up, with the consequence that VHI cannot go bankrupt. As a result, its creditworthiness is improved, providing VHI with an undue financial advantage over its competitors. If no agreement is reached on the proposed measures within one month, the Commission may open a state aid investigation.

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