Almunia presents the Work Programme on Competition Policy for 2012

22 November 2011

The sovereign debt crisis, and its effects on the capital and liquidity of banks, clearly shows that the EU as a whole continues to experience a serious disturbance in its economy. It is therefore appropriate to extend the application of the special crisis rules for State aid to banks beyond 2011.

Commissioner Almunia also stressed the following:

“In a few days’ time, I will propose to the College to extend these rules into 2012. On this occasion, we will also update the pricing of State guarantees on banks’ liquidity, to better reflect the risk that States take when they guarantee a debt instrument issued by a bank and to reflect the different value of the State guarantee offered by different sovereigns.

We will also clarify the pricing of the State recapitalisations when these take the form of ordinary shares, to better protect the interest of taxpayers.

When market conditions permit, we will adopt the new rescue and restructuring regime for financial institutions that will apply when this crisis is over.

Next year I will also propose new rules for the rescue and restructuring of industrial firms.

Given the current tight budgetary constraints, my main goal here is to find more incentives for market-based solutions as an alternative to State aid.”

Full speech


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