Germany: Commerzbank
Description
In December 2008 the Special Financial Market Stabilisation Fund (Sonderfonds Finanzmarktstabilisierung - "SoFFin") provided Commerzbank AG ("Commerzbank"), under Articles 6 and 7 of the Act of 17 October 2008 setting up a Special Financial Market Stabilization Fund, with a recapitalization worth EUR 8.2 billion and a guarantee framework for securities worth up to EUR 15 billion ("SoFFin I"). The measure was adopted as part of the German rescue package for financial institutions which the Commission declared compatible with the common market by decision of 12 December 2008.
In January 2009 SoFFin and Commerzbank entered into negotiations over a further recapitalisation measure ("SoFFin II").
Commerzbank is a credit institution established in the form of a limited company with its headquarters in Frankfurt am Main. It has a group balance-sheet total of approximately EUR 625 billion (position as at 31 December 2008). In 2008 it employed 43 169 people worldwide.
The Commission and Germany agreed that the implemented and planned measures are aid measures within the meaning of Article 87(1) of the EC Treaty. "They constitute a benefit granted to the bank from public resources and have the potential to distort competition and to affect trade between Member States. This assessment has been subject of the Commission's decision on the compatibility with the Common Market of the German rescue package." (par. 79 of the letter from the EC to Germany - Brussels, 7.5.2009 C(2009) 3708 final)
The Commission found that, as a whole, the measures to grant restructuring aid are suited to re-establishing Commerzbank’s long-term viability. In addition, measures were being taken to limit the aid to the minimum necessary and to prevent distortions of competition. This restructuring aid is therefore compatible with the common market pursuant to Article 87(3)(b) of the EC Treaty.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | Yes |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 15 May 2009
Duration: 103 months
GTA Evaluation: Red
Source:
the letter from the EC to Germany - Brussels, 7.5.2009 C(2009) 3708 final. Available from < http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=... >
Government Response:
- 756 reads
