Press Release: State aid: Commission approves recapitalisation of Bank of Ireland

The European Commission approved, under EC Treaty state aid rules, an emergency recapitalisation worth €3.5 billion that the Irish authorities intend to grant to Bank of Ireland. The Commission found the measure to be in line with its Guidance Communications on state aid during the current financial crisis. The measure constitutes an adequate means to remedy a serious disturbance in the Irish economy and is therefore compatible with Article 87.3.b. of the EC Treaty. In particular, the measure is limited in scope, requires an adequate remuneration and provides safeguards to minimise distortions of competition.