The European Commission has launched an investigation into whether UK government aid to the Northern Irish Viridian Growth Fund is compatible with common market regulation.

The Viridian Growth Fund was set up last year to fill a gap in the provision of venture capital to small and medium-sized enterprises (SMEs) in Northern Ireland. The UK Department of Enterprise, Trade & Investment (DETI), European Investment Bank, electricity supplier Viridian Group and a number of pension funds provided the start-up capital.