Commission Releases New Communication on Bank Restructuring in the Financial Crisis

On July 23, the European Commission released an important Communication on the assessment under State aid rules of restructuring measures and the return to viability of financial institutions in the current crisis (the Restructuring Communication). This fourth communication is part of the Commission’s effort to adapt State aid rules to support granted by the Member States to financial institutions with a view to safeguarding the stability of the sector, and restoring the normal functioning of wholesale credit markets and the supply of credit to the real economy.