2019 started with new examples of state aid for struggling European banks. On 2 January 2019, the ECB put in special administration at Italian Banca Carige SpA after its shareholders rejected a plan to raise capital, which led some board members to resign. Italy’s cabinet then approved measures to support Banca Carige’s liquidity and funding. In a statement after the cabinet meeting, the Italian government said it may also consider a request for a precautionary recapitalization.
One month later, on 1 February, the owners of the German NORD/LB decided to turn down a private offer for the struggling bank. They decided to go for a recapitalization by the public owners and the publicly owned Sparkassen group.
Against this backdrop, I suggested to the Banking Union Working Group of the Committee on Economic and Monetary Affairs in the European Parliament to discuss the compliance of the public support measures offered to Banca Carige and NORD/LB with European State Aid rules and financial services legislation.
On Tuesday, February 19 at 8.00 a.m., the Banking Union Working Group will hold a meeting with Vice-President Dombrovskis and Commissioner Vestager on “Recent support measures for Banca Carige and NORD/LB and compliance with European State aid rules”. The meeting will be “in-camera”, meaning closed-door, but I will participate in this meeting and be able to ask questions.
If you have any concrete (!) issues that I should raise, please do not hesitate to send them to me by Monday evening: sven.giegold@ep.europa.eu
With European green greetings,
Sven Giegold