The European Commission has concluded, under EC Treaty State Aid rules, that a recapitalization of Hypo Steiermark, a regional Austrian bank, which was carried out by the public and the private owners pro rata to the pre-existing ownership structure does not constitute state aid.
The capital increase was carried out by the public owner Land Steiermark and the private owner Raiffeisen Steiermark on a pro rata basis, thus preserving existing share-ownership stakes. The share purchase was subject to identical conditions for both investors.
The private – and majority – owner's participation in the capital increase demonstrates that the conditions are acceptable to a market economy investor. The Commission therefore concluded that the measure did not constitute state aid.