The Dutch government and the ING bank are appealing a decision by European Commissioner Neelie Kroes over the state support given to the bank. With the approval of the European Commission, ING got 10 billion euros in 2008, of which it returned 5 billion in an early repayment last November.

Although the early repayment was against the rules, the government did not fine ING for it. According to Commissioner Kroes, not imposing the 2 billion fine constitutes another instance of state aid for ING. It is this Brussels view that ING and the government in The Hague are challenging.

The effort to prevent the non-fine from being branded state aid has a deeper background. When the European Commission approved the original 10 billion capital injection to save ING, the agreement came with a number of conditions. One of the European Commission's requirements was that ING would be split up, separating the insurance branch from banking proper. The Dutch government and ING are not eager to be faced with further EU demands to alter the bank's structure if the 2-billion let-off is also classified as state aid.

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