European Commission gives NEST seal of approval

The government will hand out the loan at a commercial interest rate. However, NEST will only have to pay the interest corresponding to the government's cost of borrowing. Under the EU state aid rules, this difference is considered to be a soft loan and to constitute state aid. The amount of aid, depending on the number of members, will be in the range of £200-379m. The Commission concluded the aid would not overcompensate NEST for providing the public service and was therefore compatible with EU state aid rules. Commission vice president in charge of competition policy Joaquín Almu...