EU inquiry into state’s €14bn funding of nationalised bank

THE European Union has launched an investigation into €10.44 billion of state money for Anglo Irish Bank.

The in-depth inquiry will consider various issues, including if the bailout is the cheapest way of solving the problems of the state-owned bank, remuneration for the new management, and whether it will create unfair competition for other banks.

The commission has also asked for a revised restructuring plan for the bank by the end of May and said that the changes will have to be “profound” and ensure it can become viable.