Brussels approves Irish bailout of Anglo Irish bank
(BRUSSELS) - The European Union's top competition watchdog on Friday approved Ireland's emergency recapitalisation plan for the Anglo Irish Bank, recently nationalised by Dublin.
"The measure constitutes an adequate means to remedy a serious disturbance in the Irish economy while avoiding undue distortions of competition," the European Commission said in a statement.
"The aid is approved as a temporary rescue measure and Ireland has committed to submit a restructuring plan for the bank (by) the end of November 2009," it added.
Anglo Irish, badly hit by the financial crisis, was nationalised early this year.
The Irish government said in May that it planned to inject up to 4.0 billion euros (5.5 billion dollars) into the bank, subject to European Union approval.
The announcement came as Anglo Irish Bank reported a pre-tax loss of 4.1 billion euros in the six months to March.
Ireland was the first eurozone member to fall into recession as a result of the global financial crisis. Its economic downturn threatens to be the worst for any industrialised country since the 1930s, according to the country's top think-tank.
The commission has recently toughened its tone on government aid to banks, often seeking major restructuring to guarantee long-term viability.
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