The European Commission (Commission) is to investigate whether an unlimited State guarantee to La Poste will distort competition and cause a detrimental effect to the common market. The State guarantee enables La Post to potentially benefit from more favourable terms when obtaining finance than that available to private competitors. The Commission had advised France to terminate this unlimited State guarantee, which is unlimited in both amount and duration, by December 2008. However, France does not appear to have complied. The Commission’s investigation will allow interested third parties to comment on France’s proposals before a final decision is taken.