Brussels, 04/10/2006 (Agence Europe) - The Commission has recommended that France withdraw the unlimited State guarantee for the French Post Office by end 2008. In its capacity as a legal entity governed by public law, La Poste enjoys unlimited guarantee meaning that it is not subject to the insolvency and bankruptcy procedures provided for under ordinary law and that it is the State that could be held responsible in the last resort for its rights and obligations. This status is tantamount to a State guarantee that is unlimited in amount and in duration and covering all of the liabilities of La Poste, the Commission concluded on Wednesday, noting that La Poste enjoys advantageous conditions compared to its competitors. The French banks BNP Paribas, Société Générale, Groupe Crédit Agricole and Groupe Banque Populaire had complained of the competition distortion caused by the creation of La Banque Postale. This recommendation follows on from the Commission's decision of 21 December 2005 on the transfer of the banking and financial business of La Poste to its subsidiary, La Banque Postale (EUROPE 9096). The Commission had stressed that some aspects of the operation, such as the unlimited guarantee in favour of La Poste, but also the special right to distribute the Livret A or the social regimes for the personnel of La Poste made available to La Banque Postale, would come under another decision. The French authorities have one month in which to come to a decision. If they refuse to follow the recommendation, the Commission may move towards a binding decision. (ab)