EU wants banks to boost lending

The EU competition commissioner Neelie Kroes has said she expects banks that receive state aid to give commitments to lend to the real economy.
At the EU finance ministers meeting in Brussels, she said national rescue schemes should also include incentives for the state aid to be returned.
The European Commission has been under pressure to approve various bail-out plans proposed by member states.
New rules regarding state aid are expected to be approved by Christmas.
The European Union competition commissioner made it clear that she wanted banks to lend more in return for government help.
„I would expect commitments to lend from banks benefitting from state aid,“ she told the finance ministers.
Ms Kroes said she did not want to prevent banks that receive public money from paying dividends.
„The individual situation of each bank should be taken into account,“ she said.
She also demanded that member states implement financial bail-out plans with caution, in order to avoid distorting the competition.
„We need to make sure that all the schemes broadly fit together and that their main effect will not be to advantage one national banking sector to the detriment of other member states,“ she said.
The finance ministers are expected to give their broad approval for the bail-out plans, and also to endorse the EU call for a 200bn euro stimulus package to boost growth.