Almunia gives nod to state aid

27 Jan 2012

The European Commission on Tuesday gave its clearest signal yet that it will be tolerant of banks that resort to government funds to reach the European Banking Authority’s 9% core capital ratio, which is required by the end of June.

European competition commissioner Joaquín Almunia said that European authorities would take the bigger picture into account when drawing up restructuring plans with banks that turn to their governments for help.

Since January 2011, European state aid rules have required banks that take government capital to submit a restructuring ...

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