Govt ordered to abolish VHI's State guarantee

The European Commission has ruled that that the Government must abolish its State guarantee to the VHI.

Because the VHI is a State body, it cannot be liquidated, wound-up or declared bankrupt.

The EU has ruled that position gives it an unfair commercial advantage over its competitors.

Steffen Schulz of the EU office in Dublin has said the VHI may be investigated if the matter is not addressed by the Government.