The government has various options for selling its remaining shares, including large blocks or smaller quantities, but the timing and speed of the sale remain uncertain.

The German government has announced plans to gradually divest its 16.5% stake in Commerzbank, a move stemming from its previous support during the 2008-2009 financial crisis.

During that crisis, Commerzbank received €18.2 billion in capital aid from the Financial Market Stabilization Fund, with around €13.15 billion already repaid.

The bank was partially nationalized in 2008-2009, when the government invested approximately €18 billion to stabilize it as it faced imminent bankruptcy.

One potential strategy under consideration is a 'dribble-out' method, which would allow for gradual sales in the market.

Florian Toncar, State Secretary at the Federal Ministry of Finance, stated that the decision to reduce the government's stake reflects Commerzbank's current stability and profitability.

Commerzbank's recent performance has been strong, reporting a record profit of €2.2 billion, largely due to rising interest rates from the European Central Bank.

CFO Bettina Orlopp expressed optimism about the bank's trajectory, emphasizing that it is on a positive path regardless of state ownership.

This decision was officially announced by the federal finance agency, indicating a transparent approach to the divestment process.

Despite recent gains, analysts predict limited future growth for Commerzbank's stock due to declining interest rates and a weak economic outlook.

Some critics have questioned the timing of the sale, noting that shares were valued 20% higher just a few months ago.

The government's intervention during the banking crisis was crucial in maintaining financial market stability and preventing broader economic fallout.