Press Release: State aid: European Commission prolongs crisis framework with stricter conditions

The European Commission has agreed to prolong into 2011 its state aid crisis framework subject to modified conditions to continue with a gradual phasing-out. The Temporary Framework to support businesses access to finance maintains those measures that address ongoing market failures. But firms in difficulty are from now on excluded from the scope of the Temporary Framework to ensure an appropriate restructuring of the economy. As to the financial sector, as of 1 January 2011, every bank requiring state support in the form of capital or impaired asset measures will have to submit a restructuring plan. The crisis support frameworks were introduced at the end of 2008 in response to the financial and economic crisis. Some adaptations were already made in July 2010.

European Commission: Speech/10/711: Joaquín Almunia, Vice President of the European Commission responsible for Competition Policy, "State aid: Commission prolongs crisis framework with stricter conditions – trend towards less and better targeted aid continues despite crisis-related spike" http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/711&format=HTML&aged=0&language=EN&guiLanguage=en

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