Press Release: State aid: Commission approves aid package for German bank WestLB

The European Commission approved, under EC Treaty state aid rules, the €5 billion risk shield for German bank WestLB and accompanying measures, following an in-depth investigation opened in October 2008 (see IP/08/1435). The risk shield was authorised by the Commission as temporary rescue aid on 30 April 2008. Germany asked for a prolongation of the measure, together with accompanying measures. In light of the far-reaching measures to be implemented to restore WestLB's long-term viability without undue distortions of competition, the Commission concluded that the aid was compatible with the Single Market. In particular, WestLB will refocus on less risky activities and reduce its size by half.