The European Commission has approved under EC Treaty State aid rules a €3.5 billion emergency recapitalisation which the Irish authorities intend to grant to Allied Irish Bank. The Commission found the measure to be in line with its Guidance Communications on State aid during the current financial crisis. The measure was found to constitute an adequate means to remedy a serious disturbance in the Irish economy and was therefore found to be compatible with Article 87.3.b. of the EC Treaty. On 22 April 2009, the Irish authorities formally notified the Commission of their intention to recapitalise Allied Irish Bank with €3.5 billion,.
In particular, the recapitalisation was found by the Commission to meet the following criteria: necessity, appropriate own contribution and avoidance of undue distortions of competition. Further, the measures are limited in scope and require an adequate remuneration. The Commission’s guidance communications are available by clicking here.
