Press Release: State aid: Commission opens in-depth investigation into aid package for German bank Hypo Real Estate

The European Commission opened under EC Treaty State aid rules an in-depth investigation into state support measures for German bank Hypo Real Estate. This is a first step towards finding a viable long-term solution, in close contact with the German authorities. Hypo Real Estate Holding AG (HRE) obtained rescue aid in the form of a state guarantee of €35 billion, endorsed by the Commission on 2 October 2008. Because this measure continues to be necessary for the bank to ensure its financing, Germany has notified a prolongation of the guarantee together with accompanying measures for HRE. The opening of an investigation is common for state interventions of this magnitude and will ensure legal certainty for the companies concerned. It also gives interested parties the possibility to submit their comments. It does not prejudge the outcome of the procedure.