British Prime Minister Gordon Brown has said that the nationalisation of ailing mortgage lender Northern Rock will respect strict EU state aid rules.
'We've made our decision on the future ownership of Northern Rock for the time being and we will submit our plans to the European Commission,' Brown, who is at the European Commission in Brussels, said.
'I'm absolutely satisfied that we will be completely in line with the European Union state aid rules,' he said.
In December, the European Commission approved rescue aid for Northern Rock on condition that the support lasted no longer than six months and was aimed at keeping the bank afloat.
London, which is nationalising the troubled bank after no suitable buyers were found, must seek the commission's permission for longer term aid, which can be granted under EU rules if accompanied with a deep restructuring.
