Commission ‘not ready’ to sign off on deal

THE European Commission reacted positively to the Government’s plan to effectively wind-down Anglo Irish Bank, but warned that a number of important aspects needed to be clarified before the Commission would sign off on it.

The outline of the plan to hive off deposits into a funding bank, wholly owned by the Department of Finance, was agreed with the Commission during discussions over the past few months.

The Commission will study the final proposals to ensure that the plan forAnglo Irish, which has received around €25 billion from the state, does not pose unfair competition.