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Image header Agence Europe
Europe Daily Bulletin No. 9897
Contents Publication in full By article 22 / 26
GENERAL NEWS / (eu) eu/state aid

Investigation into Northern Rock rescue goes on

Brussels, 07/05/2009 (Agence Europe) - The European Commission announced on Thursday 7 May that it was extending the scope of its year-long in-depth investigation to determine whether the UK aid package to restructure Northern Rock bank provided an unfair advantage. The decision comes after the Commission received notification from the UK authorities on 30 March of significant changes to the aid package. Northern Rock was nationalised last year to save it from bankruptcy. The main change introduced is the split of Northern Rock into a “good” bank, which would continue commercial activities, and a “bad” bank with most of the previous mortgage loans, which would be wound down. To allow it to come to a final decision, the Commission has asked the British authorities to provide further information. It has also asked Northern Rock's competitors and other interested parties to comment on whether the proposed measures seem to them to avoid competition distortions. “If we find significant distortions of competition under the new plans, then the UK authorities will, of course, be required to present ways to offset these distortions,” said Competition Commissioner Neelie Kroes. (L.C./transl.rt)

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