Press Release: State aid: Commission opens in-depth investigation into aid package for German HSH Nordbank AG

The European Commission opened, under EC Treaty state aid rules, an in-depth investigation into the €10 billion risk shield and €3 billion recapitalisation provided by the German Länder of Hamburg and Schleswig-Holstein to HSH Nordbank AG. The Commission initially authorised the risk shield for six months for reasons of financial stability on 29 May 2009. During its investigation, the Commission will analyse the complex measures in the light of its recent Communications on the restructuring of financial institutions during the crisis and on the treatment of impaired assets. On the basis of the information provided so far, the Commission had doubts as to the compatibility of the measures with the impaired assets Communication, in particular as regards the eligibility and valuation of assets covered by the risk shield and remuneration of the Länder for the risk shield provided. Furthermore, the Commission must verify whether the measures are liable to restore the long-term viability of the bank. The opening of an investigation is not unusual for state interventions of this magnitude. It will ensure legal certainty for stakeholders and give interested third parties the possibility to submit their views. The opening of such an investigation is without prejudice to its final outcome.