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Hypo Real Estate's future plan was criticized by the European Commission, Boersen-Zeitung reported. The German daily cited a European Commission document that said there continue to be doubts about HRE's chances of survival. These doubts remain despite an updated restructuring plan for the German mortgage bank, according to the cited document.
The newspaper said the document questions whether the reduction of the balance sheet total by between 69% and 72% represents sufficient compensation for the assistance the bank received. The daily also cited the document as questioning whether the conditions for a planned reprivatization of the bank are such as to limit distortion of competition.