No swift move on bank plan

Huddersfield Daily Examiner (Huddersfield, England), June 11, 2009

THE European Commission today ruled out any swift approval of the Government's plans for a pounds 3bn cash injection for Northern Rock.

A Commission spokesman denied claims that a decision was likely within weeks after talks in Luxembourg between Chancellor Alastair Darling and EU Competition Commissioner Neelie Kroes.

She cleared emergency government aid for Northern Rock as the economic crisis hit and must now rule on whether the Government's longer-term plans to prop up the bank breach EU fair competition rules.

Until she delivers her verdict, the Government cannot act on a range of options for Northern Rock, including floating the bank on the stock market or selling it..