These recommendations are without prejudice to guidance from the European Commission aimed at avoiding distortions in competition in accordance with State aid rules of the Treaty. In this context, the Eurosystem considers that any recapitalisation should take into consideration the specific market situation of each institution, distinguishing in particular between fundamentally sound and distressed banks.
Furthermore, it is important to ensure that the temporary nature of government measures is preserved and that capital raising by private investors is not discouraged. The level of commitment of public authorities in restoring confidence and the flow of credit to the economy is very high.