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State aid rules are being loosened up for two years, competition commissioner Neelie Kroes has announced. (Photo: European Commission)

EU loosens state aid rules, feels pressure on budget deficits

The European Commission has given in to calls to loosen up rules on state aid in order to tackle looming economic recession, while some national governments are piling on the pressure for a similar amnesty on their widening budget deficits.

"These changes are justified given the exceptional economic conditions," competition commissioner Neelie Kroes told a press conference on Wednesday (17 December).

"But given that these are temporary circumstances, today's measures must also be ...

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State aid rules are being loosened up for two years, competition commissioner Neelie Kroes has announced. (Photo: European Commission)

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