ECONOMY

EU looking into four countries’ treatment of banks’ deferred tax assets

European Union regulators are scrutinizing four EU countries’ treatment of banks’ deferred tax assets to see if these constitute state aid, the European Commission said on Tuesday.

The EU executive said it contacted authorities in Spain, Italy, Portugal and Greece following requests from some lawmakers in the European Parliament and other stakeholders on state guarantees.

“The Commission has received first responses and is currently assessing them. To be clear, the process is at a very early stage. We cannot prejudge whether a formal investigation is needed or the outcome of the Commission’s assessment of these measures,» the EU regulator said.

[Reuters]