EU Commission pledges new bank aid rules by Xmas

BRUSSELS (Reuters) - European Union Competition Commissioner Neelie Kroes, facing fierce pressure from member states to approve state aid to ailing banks, pledged on Tuesday that the EU executive would approve new rules before Christmas.

Kroes said in a statement after meeting EU finance ministers that the Commission expected banks that received state aid to give commitments to lend to the real economy.

She said there must also be strong incentives for state aid to banks to be repaid as soon as possible, without banning banks that receive public money from paying dividends.

Banks' individual situations should be taken into account, she told the EU ministers.