EC to probe Northern Rock rescue

Under the EC Treaty’s rules on state aid, the commission will examine whether the Government’s nationalisation plan impedes on competition in the sector. The Government’s notified aid measures may be declared compatible with EC law if compliant with three key measures: Restoration of long-term viability without further state support Aid limited to the minimum necessary to implement the restructuring Avoidance of undue distortions of competition "The commission needs to open a formal investigation into UK measures to restructure Northern Rock to ensure legal certainty, notably...