EU Competition Commissioner examining banks guarantee

The European Competition Commissioner says she is examining the Irish Government's proposed banking guarantee as a matter of urgency.

An official spokesperson for Commissioner Neelie Kroes has said that she has been in close touch with the Irish authorities over their plans to guarantee all deposits in the country's six Irish-owned banks.

Speaking from Brussels, spokesperson Jonathan Todd said this afternoon that the Commission expects notification from the Irish Government on the matter very shortly and will make a decision on the guarantee under EU State Aid rules.

The Commission is understood to be concerned that the guarantee plan could give Irish banks an unfair advantage over foreign banks operating here.