The European Commission has extended its authorisation under EU state aid rules of the Dutch and Slovenian bank guarantee schemes and the Greek and Polish bank support measures, until 31 December 2010. According to these extended measures banks should pay higher premiums for the guarantees provided by the State. This measure is intended that banks choose to finance themselves without recourse to state aid and avoid market distortions.

The measures adopted relate to the extension of schemes to support the bank in the Netherlands, Slovenia, Greece and Poland. Most of the support schemes for financial institutions were approved by Member States during 2008 and 2009 in order to ensure the financial stability of the system. These schemes were to expire in June 2010 and have been regularly extended for periods of six months, at the request of the Member States.

Extensions approved by the Commission include:

• Guarantee Scheme Dutchman: Approved in December 2008 and extended twice, the Commission considers that the Netherlands aid scheme is in line with the criteria established by the Commission as a guide Members States for granting aid banks during the crisis.
• Guarantee Scheme Slovenian: approved in December 2008 and extended twice, the Commission also considers that in line with the help guides.
• A package of support for Greek credit institutions: measures which consist of enlargement has been approved in the scheme of recapitalization, the guarantee scheme approved in November 2008.
• Scheme to support the Polish financial institutions: the Commission approves the extension of the measures adopted in September 2009.

In order to safeguard financial stability, Member States last year spent about three billion euros to the establishment of systems of guarantees, risk coverage and measures to recapitalize. The stability of the financial system and the proporcioalidad and accountability measures of the banking system, have been one of the elements addressed by the summit of the G-20 held in Toronto.

The Commission has already approved, also for six months, the prolongation of schemes in Sweden, Germany, Hungary, Austria, Latvia, Ireland, Spain, Denmark and Hungary.