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By letter of 11 April 2002, the German government accepted the amendment of 27 March 2002 of the Commission’s proposal for appropriate measures as regards the system of State guarantees to German public banks (Anstaltslast and Gewahrtragerhaftung). By its acceptance, the German government formally put an end to the procedure of appropriate measures initiated in January 2001. It cleared the road to bringing the German system of State guarantees for public banks in line with the State aid rules of the EC Treaty, thereby removing a longstanding distortion of competition in Germany’s and Europe’s financial system.
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