Brussels, 06/10/2008 (Agence Europe) - European Competition Commissioner Neelie Kroes has asked the Irish government to significantly amend its proposal to guarantee bank deposits - in other words, to bring them into line with Community state aid rules. On Dutch television on Sunday, the commissioner said that the Irish authorities had agreed.
“My people were in Dublin on Friday and Saturday, and returned with positive news that there will be corrections to the plan. They (the Irish authorities) will correct the discriminatory elements which we don't like,” she said on the Dutch programme Buitenhof. The plan, as adopted by Irish legislators on Thursday 2 October (see EUROPE 9754) “is not allowed,” the commissioner said, adding that “a guarantee without any limits isn't allowed either”. The Commission is concerned that the proposed guarantees had no limit on deposits, and also that they were available only to Irish banks. Kroes also said that she had received no prior notification of the move. The British government does not look favourably on the Irish initiative either, fearing, as it does, possible transfers of funds from British banks to Irish banks in order to enjoy unlimited guarantees. German Chancellor Angela Merkel was also sharply critical of Dublin this weekend. According to a source close to the matter, the Greek state, which was considering guaranteeing all bank deposits, has also decided not to proceed with this idea. (C.D./transl.rt)