EU Approves Greek Financial Rescue Plan

Xinhua Brussels, November, 19 (reporter Shang Jun) the European Commission announced on the 19 day that it had approved the financial rescue plan put forward by the Greek government.

The European Commission said in a statement that although the Greek government's financial rescue plan constituted a government subsidy, it conformed to the relevant provisions of the European Union, which helped stabilize the financial market and did not cause unnecessary distortions in the competition, so it was approved.

In response to the financial crisis, the Greek government announced that it would purchase preferred stock from financial institutions to replenish its capital and guarantee financial institutions' debt financing.

At the same time, the Greek government will help other financial institutions to obtain funds in other ways.

The scheme is planned to cost 28 billion euros.

According to the relevant EU regulations, Member States must obtain the approval of the European Commission when they provide financial assistance to their financial institutions. This is designed to prevent EU Member States from affecting the market competition by providing government subsidies to their financial institutions.

Recently, the European Commission has approved the financial rescue plan for more than 10 member countries such as Germany, Britain and France.

So far, the total number of financial rescue plans announced by EU countries has exceeded 2 trillion dollars.