EC backs plan

THE European Commission is satisfied the recapitalisation programme for Irish banks obeys the rules laid down for government interventions.

A statement for the commission said it had been briefed by the Government before it announced an intention to invest directly in ailing banks.

“The Irish authorities have been in talks with the commission in advance of the announcement. And the commission takes note of the fact the Department of Finance has said any investment will be in line with the commission’s guidance on recapitalisation,” it said.