Press Release: State aid: Commission approves amendment to Commerzbank restructuring plan

The European Commission has approved, under EU state aid rules, a modification to Germany's and Commerzbank's commitment to divest its largest subsidiary Eurohypo by the end of 2014. The commitment had been given in the context of Commerzbank's restructuring plan, approved by the Commission on 7 May 2009.

When it appeared that Eurohypo could not be divested because of its large funding needs and significant sovereign exposure, the German authorities proposed instead to run-off most of Eurohypo's activities on Commerzbank's own balance sheet and to prolong the acquisition ban until March 2014. The Commission found the proposed alternative in line with EU state aid rules, in particular because it will limit undue distortions of competition.