On 28 October 2008, the EU Commission approved the German package of measures for the stabilisation of the financial market using capital assistance and of guarantees for the benefit of financial sector enterprises, based on the FMStG (see German Financial Market Stabilisation Act (FMStG)) under the EC state aid rules.

After close co-operation with the German authorities, which submitted a comprehensive package of commitments to restrict the scope of the application of such measures, the Commission arrived at the conclusion that the relevant regulations are in line with its Communication regarding the guidance on how Member States can best support financial institutions in the current financial crisis. The Commission said that the rescue package was an appropriate instrument to remedy a significant disturbance in the economic situation in Germany while avoiding disproportionate distortions of competition and was therefore in compliance with Article 87 III lit.b of the EC Treaty. In particular, the package of measures, which guarantees non-discriminatory access to the financial aid, is of a temporary nature, has a very limited scope of application and provides for appropriate measures to minimise distortions of competition to a minimum.

Further, the Commission published a communication on 8 December 2008 regarding recapitalisation measures for the benefit of financial institutions in the current financial market crisis. The Communication shows that the Commission's Directorate General for Competition is also now prepared to support approaches to stimulate the economy, as is required in many Member States. It is proposed that capital should be provided to banks not only for the purposes of rescue and liquidity, but also with the particular aim to support them in granting more loans.