ANNOUNCEMENT 06 Jul 2011

In July 2011, the government of Ireland announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



letter from the EC to Ireland - Brussels, 20.7.2011 C(2011) 5258 final- http://ec.europa.eu/eu_law/state_aids/comp-2011/sa33311-2011n.pdf


Inception date: 20 Jul 2011 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

On 6 July 2011, the Irish authorities notified a recapitalisation measure of up to EUR 3.8 billion for the Irish Life and Permanent Group Holdings (IL&P). IL&P Group is the parentcompany of Ireland's third-largest remaining bank. Apart from Ireland, IL&P Group is also present in the UK but ceased new activities there in 2008. IL&P is publicly quoted on the Irish stock exchange.
 
The Commission gave the following assessment:
"The Commission finds that the measure is also able to affect trade between Member States and to distort competition as IL&P is competing on, amongst others, the Irish retail savings markets, the Irish mortgage lending markets and the Irish commercial lending markets. In the Irish market, some of IL&P's competitors are subsidiaries of foreign banks." (par. 67 of the letter from the EC to Ireland - Brussels, 20.7.2011 C(2011) 5258 final)
 
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.
 

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
N/A