Press conference by Joaquín Almunia, Vice-President of the EC, on the extension of the state aid control rules for banks during the crisis
Joaquín Almunia, Vice-President of the EC in charge of Competition, gave a press conference after the EC decided to prolong a set of temporary state aid control rules to assess public support to financial institutions during the crisis. The main provisions consist in explaining how to ensure that the State is adequately remunerated if – as is increasingly likely in the future - Member States decide to recapitalise their banks using instruments, such as ordinary shares, for which the remuneration is not fixed in advance. A revised methodology was also agreed concerning the remuneration of guarantees for banks' funding needs – the bulk of the support to date – to ensure the fees that banks pay reflect their intrinsic risk, rather than the risk related to the Member State concerned or the market as a whole. The rules will apply as long as required by market conditions.
Joaquín Almunia at the rostrum Ref:P-019985