State aid in financial services

State Aids

The EU General Court confirms that the Commission enjoys a large margin of discretion in determining the compatibility of restructuring aid (ABN Amro Group)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog Two Judgments: a) Unlimited State Guarantees and b) The Discretion of the Commission in Restructuring Measures* Main points Unlimited state guarantees are never compatible with the internal market The existence of an unlimited guarantee and its (...)

The EU General Court rules that the context in which an administrative decision is adopted may reduce the burden of motivation imposed on an institution (ABN Amro Group)
European Procurement Law Group
GC hints at a reduction of the burden of motivation of administrative decisions under EU law (T-319/11)* In its Judgment of 8 April 2014 in case T-319/11 ABN Amro Group v Commission, the General Court has indicated that the context in which an administrative decision is adopted may reduce the (...)

The EU Court of Justice follows its non-formalistic approach to the application of the market economy private investor test in relation to capital injection subject to repayment (ING Groep)
European Procurement Law Group
CJEU further pushes for a universal application of the ’market economy private investor test’ (C-224/12)* In its Judgment of 3 April 2014 in case C-224/12 Commission v Netherlands and ING Groep, the Court of Justice of the European Union (CJEU) has followed its antiformalistic approach to the (...)

The EU Court of Justice issues two judgements on the application of the Private Investor Principle and correspondently the Private Creditor Principle (ING Groep)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog The Importance of a Correct Framing of the Private Creditor and Private Investor Tests* Main points A public authority acting as private creditor must exhaust all legally available means of recovering money owed to it. A private creditor may agree (...)

The European Parliament adopts a regulation on structural funds requiring compliance of financial instruments with state aid rules
College of Europe (Bruges)
Article published on Lexxion State Aid Blog An Assessment of the State Aid Consistency of Financial Instruments Supported by Structural and Investment Funds (Regulation 1303/2013)* Introduction Last week I reviewed the new State aid guidelines on risk finance. This week I will examine the (...)

The EU Court of Justice establishes that the privatisation of the Austrian bank has not been carried out in the light of the private investor in a market economy principle (GRAWE)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog Private Vendor Principle: How to Organise a State-Aid-Free Sale of Public Assets* Introduction The private investor principle (PIP) or market economy investor principle is well established in the case law. A closely related concept is the private (...)

The EU Court of Justice confirms prior State aid cannot be taken into account by public authority to justify further subsidies as market behaviour (Land Burgenland)
Unilever (Brussels)
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Jones Day (Brussels)
In its recent judgment in Land Burgenland (Joined Cases C-214/12 P, C-215/12 P and C-223/12 P) the Court of Justice of the European Union (CJEU) has confirmed that compatible State aid granted to an undertaking in the past must not be taken into account in the context of the Market Economy (...)

The EU Court of Justice applies "private vendor" test and upholds Commission’s approach on the incompatibility of a state aid for the privatisation of an Austrian bank (GRAWE)
European Procurement Law Group
Maybe not such a global appraisal of State aid after all: CJEU backtracks from a truly economic approach (C-124/10)* In an interesting recent paper, Pablo Ibáñez Colomo conducts a very detailed statistical overview of State Aid Litigation before EU Courts (2004–2012) Journal of European (...)

The European Commission authorises an emergency recapitalisation of up to €250 M for a Slovenian bank (Nova Ljubljanska Banka)
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
State aid: main developments between 1 January and 30 April 2011* On 7 March, the Commission authorised an emergency recapitalisation of up to €250 million for the Slovenian bank Nova Ljubljanska Banka (NLB). NLB passed the stress tests conducted in mid-2010 by the European Banking Authority (...)

The EU General Court partly annuls EU Commission decision on restructuring aid granted to a bank on account of the financial crisis (ING)
Van Bael & Bellis (Brussels)
On 2 March 2012, the General Court (“GC”) has partly upheld ING’s appeal against a Commission decision of 2009 regarding various forms of aid granted by the Dutch State to the banking group ING in the context of the latter’s restructuring plan during the financial crisis. The ING group had (...)

The EU General Court confirms the EU Commission’s decision ruling that the Province of Burgenland had granted State aid which was not compatible with the common market (Land Burgenland and Republic of Austria)
Trummer & Thomas
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Trummer & Thomas
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Borealis
I. Introduction On 28 February 2012 the General Court confirmed the European Commission’s (“Commission”) decision of 30 April 2008 and ruled that the Province of Burgenland had granted State aid to Grazer Wechselseitige Versicherung AG (“GRAWE”) which was not compatible with the common market. (...)

The European Commission approves the liquidation plan submitted by the German government for a German commercial bank (WestLB)
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"WestLB liquidation – the end of the saga"* 1. Introduction On 20 December 2011, the European Commission approved the liquidation plan submitted by the German government for the commercial bank WestLB, majority‑owned by the two savings banks associations in North Rhine‑Westphalia and the (...)

The European Commission temporarily approves a €200 M asset guarantee granted by the Austrian government to a bank (Hypo Alpe Adria)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 19 July 2011 the Commission temporarily Approved a €200 million asset guarantee, which Austria granted to the bank at the end of 2010. Given the specific characteristics of the guarantee, which shelters the bank from losses (...)

The European Commission approves the aid to German bank on the basis of an in‑depth restructuring plan (Hypo Real estate)
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"The rescue and restructuring of Hypo Real estate"* 1. Introduction In this article, we briefly describe the case of State aid for Hypo Real Estate (HRE). HRE is a German banking group that got into difficulties in 2008 and was subsequently rescued and nationalised by Germany. In July (...)

The European Commission approves restructuring aid granted to a German banking group (Hypo Real estate)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 18 July 2011 the Commission approved restructuring aid consisting of capital injections of €10 billion, an asset relief measure with an aid element of about €20 billion, as well as liquidity guarantees amounting to €145 billion (...)

The European Commission temporarily approves recapitalisations in the financial sector granted by the Irish authorities (Allied Irish Banks/Educational Building Society, Irish Life & Permanent group Holdings)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 15 July 2011 the Commission temporarily Approved a recapitalisation worth up to €13.1 billion of an entity resulting from the merger of Allied Irish Banks and Educational Building Society (AIB/EBS), as well as a (...)

The European Commission applies the joint European support for sustainable investment in city areas allowing member states to invest structural fund resources in revolving funds to support sustainable urban development and regeneration (JESSICA)
European Commission - DG COMP (Brussels)
"First JESSICA decisions: approach and implications"* 1. Introduction The Commission has made increasing use of financial engineering instruments in the 2007‑2013 programming period. These instruments complement traditional grant funding and aim to make EU cohesion policy efficient and (...)

The European Commission temporarily approves the recapitalisation of a bank by the Irish authorities of up to €5.35 billion, after a first €3.5 billion restructuring plan was approved (Bank of Ireland)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 11 July 2011, the Commission temporarily approved the recapitalisation of the Bank of Ireland (BoI) by the Irish authorities of up to €5.35 billion, after a first €3.5 billion restructuring plan was approved in July 2010. This (...)

The European Commission clears a joint restructuring plan for two Irish banks (Anglo Irish Bank and Irish Nationwide Building Society)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 29 June 2011, the Commission cleared a joint plan for Anglo Irish Bank (Anglo) and Irish Nationwide Building Society (INBS) whereby they will be merged and resolved over a period of 10 years. The two Irish financial (...)

The European Commission approves the joint restructuring of two Irish banks (Anglo Irish Bank/Irish Nationwide Building Society)
De Nederlandsche Bank (DNB)
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European Commission - DG COMP (Brussels)
"The Resolution of Anglo Irish Bank and Irish Nationwide Building Society"* 1. Introduction Of the banks that have received State aid during the financial crisis, few have received as much aid relative to their risk‑weighted assets as Anglo Irish Bank (Anglo) and Irish Nationwide Building (...)

The European Commission grants temporary approval to Danish support for the liquidation of a bank which was declared bankrupt (Amagerbanken)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 6 June 2011 the Commission granted temporary Approval to Danish support for the liquidation of Amagerbanken, which was declared bankrupt in February 2011. The aid is limited to what is necessary to facilitate an orderly (...)

The European Commission clears Danish support for the liquidation of a bank, as it provides for an orderly wind‑up of the bank and foresees sufficient safeguards to limit distortion of competition (Eik Bank)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 6 June 2011 the Commission cleared Danish support for the liquidation of Eik Bank, as it provides for an orderly wind‑up of the bank and foresees sufficient safeguards to limit distortion of competition. The bank, until 2010 (...)

The European Commission decides that French bank was not overcompensated for collecting funds to finance social housing (Crédit Mutuel-Livret bleu)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 24 May 2011, following a formal investigation started in 1998, the Commission decided that Crédit Mutuel was not overcompensated for distribution of the Livret bleu savings account in France. In 1975 France created the (...)

The European Commission rules that a French bank was not overcompensated for collecting funds to finance social housing (Crédit Mutuel-Livrets bleu)
European Commission - DG COMP (Brussels)
Services of general economic interest: Crédit Mutuel decision - not overcompensated* This article concerns the Commission’s assessment of a service of general economic interest (SGEI) in the banking sector, namely the decision closing the formal investigation of Crédit Mutuel‘s Livrets Bleusavings (...)

The European Commission approves the restructuring plan of the agricultural bank of Greece (ATE)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31  August 2011"* On 23 May 2011 the Commission approved the restructuring plan of the Agricultural Bank of Greece (ATE), judging it apt to restore the bank’s long‑term viability whilst ensuring it shares the burden of its restructuring and (...)

The European Commission concludes that a French venture capital fund which aims to encourage the raising of risk capital for young innovative SMEs is compatible with the guidelines on risk capital (FNA)
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
State aid: main developments between 1 January and 30 April 2011* On 20 April, the Commission concluded that the national venture capital fund which aims to encourage the raising of risk capital for young innovative SMEs is compatible with the guidelines on risk capital. The French national (...)

The European Commission conditionally approves the State aid package and the restructuring of leading Dutch financial services company (ABN AMRO)
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
The ABN AMRO restructuring decision* On 5 April 2011, the Commission took a final conditional decision approving the State aid package of the ABN AMRO Group and the restructuring of the company. This conditional decision followed the opening of a formal investigation on 8 April 2009, which, - (...)

The European Commission approves several State aid measures in favour of Austrian bank (Kommunalkredit Austria)
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
State aid: main developments between 1 January and 30 April 2011* On 31 March, the Commission approved several measures in favour of Kommunalkredit Austria AG. Before the crisis, Kommunalkredit was the seventh largest Austrian bank with a balance sheet of €37 billion. Its business consisted of (...)

The European Commission adopts a communication on the application of State aid rules to support measures in favour of banks in the context of the financial crisis
European Commission - DG COMP (Brussels)
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Hogan Lovells (Madrid)
State Aid: Main developments between 1 September and 31 December 2010* Following a public consultation on the State aid temporary rules established in response to the economic and financial crisis, the Commission believes there are still grounds for considering that the requirements for the (...)

The European Commission extends the State aid temporary framework to support measures in favour of banks in the context of the financial crisis
European Commission - DG COMP (Brussels)
Prolongation of the State aid temporary framework* 1. Introduction - The State aid temporary framework The Commission adopted the State aid temporary framework in December 2008 as a response to the global financial crisis. At that time, and in view of the serious risk of a credit crunch, it (...)

The European Commission authorises aid for the restructuring of a regional Spanish bank (CajaSur)
European Commission - DG COMP (Brussels)
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Hogan Lovells (Madrid)
State Aid: Main developments between 1 September and 31 December 2010* On 8 November 2010 the Commission authorised aid for the restructuring of CajaSur. CajaSur provided retail banking services, mostly in the region of Andalucía, and came into financial difficulties as a result of its (...)

The European Commission extends its ongoing State aid investigation into German bank (WestLB)
European Commission - DG COMP (Brussels)
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Hogan Lovells (Madrid)
State Aid: Main developments between 1 September and 31 December 2010* On 5 November 2010 the Commission extended its ongoing State aid investigation into WestLB after reaching the conclusion that the bank had received an estimated Eur. 3.4 billion in State subsidies more than it was initially (...)

The European Commission approves the Danish Government’s measures for the liquidation of a regional bank (Fionia Bank)
European Commission - DG COMP (Brussels)
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Hogan Lovells (Madrid)
State Aid: Main developments between 1 September and 31 December 2010* On 25 October 2010 the Commission approved the Danish Government’s measures for the liquidation of Fionia Bank. Fionia Bank was a regional, full service bank based on the island of Funen and neighbouring islands in central (...)

The European Commission approves the restructuring of Latvia’s second biggest bank (Parex)
European Commission - DG COMP (Brussels)
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Hogan Lovells (Madrid)
State Aid: Main developments between 1 September and 31 December 2010* On 15 September 2010 the Commission approved a thorough restructuring of Parex, Latvia’s second biggest bank before the crisis. The bank, which was partly nationalised in November 2008, benefited from State aid for a total (...)

The European Commission authorises a scheme for the recapitalisation of credit institutions in Greece by the Hellenic Financial Stability Fund
European Commission - DG COMP (Brussels)
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Hogan Lovells (Madrid)
State Aid: Main developments between 1 September and 31 December 2010* On 3 September 2010 the Commission authorised a scheme for the recapitalisation of credit institutions in Greece by the Hellenic Financial Stability Fund (FSF). Its capital, which amounts to € 10 billion, stems from the (...)

The European Commission states that a guarantee granted by Portugal to six banks to lend €450 M to national Portuguese bank constitutes illegal and incompatible State aid (Bank of Portugal)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2010"* On 20 July 2010 the Commission concluded that a guarantee granted by the Portuguese State to six banks in Portugal to lend €450 million to BPP at the height of the financial crisis, in December 2008, constituted illegal and (...)

The European Commission authorizes a € 550 M capital injection provided by Austria in favor of a bank and approves a new restructuring plan (BAWAG Bank)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2010"* The Commission has authorised on 30 June 2010 a €550 million capital injection provided by Austria in favour of the BAWAG bank and approved a new restructuring plan of the bank13. In 2007 already, the Commission had approved a (...)

The European Commission authorizes aid for the restructuring of a Spanish financial institution (Caja Castilla-La Mancha)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2010"* On 29 June 2010 the Commission has authorised aid for the restructuring of Caja Castilla-La Mancha. The Commission’s investigation found that the orderly break-up of Caja Castilla-La Mancha, followed by the sale of the banking (...)

The European Commission grants final clearance to the Swedish aid for the restructuring of an investment bank (Carnegie Investment Bank)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2010"* On 12 May 2010 the Commission has granted final clearance to the Swedish aid for the restructuring of Carnegie Investment Bank. In October 2008, the Swedish government provided a rescue loan of SEK2.4 billion (€ 225 million) to (...)

The European Commission issues a working document on the application of State aid rules to government guarantee schemes covering bank debt to be issued after 30 June 2010
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 January and 30 April 2010"* On 30 April 2010, DG Competition prepared a staff working document on the application of State aid rules to government guarantee schemes covering bank debt to be issued after 30 June 2010. The document proposes a review of the (...)

The European Commission authorizes, under the temporary framework, a Slovenian measure to provide insurance cover via the State-owned agency to exporters who are unable to obtain cover from the private market (SID Banka)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 January and 30 April 2010"* The Commission also authorised a Slovenian measure to provide insurance cover via the State-owned agency, SID Banka, to exporters who are unable to obtain cover from the private market as a result of the current financial (...)

The European Commission approves the establishment of a national agency constituting an impaired asset relief scheme for financial institutions in Ireland (National Asset Management Agency)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 January and 30 April 2010"* On 26 February 2010, the Commission approved the establishment of the National Asset Management Agency (NAMA), an impaired asset relief scheme for financial institutions in Ireland. The purpose of NAMA is to restore stability (...)

The European Commission conditionally approves State aid package and restructuring of European financial services group (Dexia)
Université Libre de Bruxelles (ULB)
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Credit Agricole
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European Commission - DG COMP (Brussels)
"The Dexia restructuring decision"* On 26 February 2010, the Commission took a final, conditional decision approving the State aid package to, and the restructuring of, Dexia SA (‘Dexia‘), which benefited from a large State aid package. This conditional decision follows an in-depth investigation (...)

The European Commission authorizes an amendment to a Dutch short-term export credit insurance scheme
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 January and 30 April 2010"* The Commission has authorised an amendment to a Dutch short-term export credit insurance scheme, which was initially approved on 2 October 2009. The amendments include a reduction in the level of premiums to be paid by (...)

The European Commission approves the measures taken by the UK Government for the liquidation of UK specialist mortgages and savings products company (Bradford & Bingley)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 January and 30 April 2010"* On 25 January 2010 the Commission approved the measures taken by the UK Government for the liquidation of Bradford & Bingley. Bradford and Bingley provided specialist mortgages and savings products. It operated 197 (...)

The European Commission approves a Hungarian measure aimed at providing liquidity to eligible financial institutions in Hungary to support lending to the economy
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 January and 30 April 2010"* The Commission has approved a Hungarian measure aimed at providing liquidity to eligible financial institutions in Hungary to support lending to the economy. In the period from late 2008 to early 2009, the Hungarian financial (...)

The European Commission approves two State aid measures in favor of a German bank consisting in an injection of capital and an impaired assets relief measure in the form of guarantees for two portfolios of structured securities (Landesbank Baden-Württemberg)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 September and 31 December 2009"* Landesbank Baden-Württemberg (‘LBBW‘) benefited from two support measures: an injection of € 5 billion of tier-one capital and an impaired assets relief measure in the form of guarantees of € 12.7 billion for two portfolios of (...)

The European Commission approves State aid measures concerning the recapitalization of a UK bank (Royal Bank of Scotland)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 September and 31 December 2009"* Under a package of financial support measures approved by the Commission on 13 October 2008, RBS received state recapitalisation of £ 20 billion (€ 22 billion), giving the state a 70 % stake in the bank. Approval of this (...)

The European Commission adopts a communication amending the temporary framework for State aid measures to support access to finance in the current financial and economic crisis
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 September and 31 December 2009"* On 8 December 2009 a technical amendment to the Temporary Framework was adopted to open up easier access to finance and encourage longterm investment, especially in Member States with low labour costs. Member States will (...)

The European Commission endorses UK restructuring plan in favor of a UK bank (Lloyds Banking Group)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 September and 31 December 2009"* Lloyds Banking Group is the entity resulting from the acquisition of HBOS by Lloyds TSB in January 2009. In 2008, HBOS was on the brink of bankruptcy as a result of risky lending and heavy dependence on wholesale funding. (...)

The European Commission approves a package of measures to support the restructuring of UK mortgage bank (Northern Rock)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 September and 31 December 2009"* On 28 October 2010, the Commission approved a package of measures to support the restructuring of UK mortgage bank Northern Rock. The bank will be split into a ‘good’ bank that will continue the economic activities of (...)

The European Commission authorizes UK restructuring aid package in the banking sector (Northern Rock)
European Commission - DG COMP (Brussels)
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De Nederlandsche Bank (DNB)
"Restructuring in the banking sector during the financial crisis: the Northern Rock case"* I. Introduction In normal circumstances the exit of inefficient firms is part of a self-correcting mechanism in the market. In this way market-based competition penalises those who make less efficient (...)

The European Commission approves restructuring State aid granted to a German medium-size private bank (IKB)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2009"* IKB is a medium-sized private German bank with a business focus on medium-sized companies. IKB was the first bank in Germany to receive aid, in 2007, to offset the damage caused by bad investments in structured securities. (...)

The European Commission approves € 5 billion risk shield and accompanying measures for German bank (WestLB)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2009"* Under EU state aid rules, and following an in-depth investigation that began in October 2008, the European Commission approved the € 5 billion risk shield and accompanying measures for German bank WestLB. The risk shield was (...)

The European Commission issues guidelines on restructuring aid to banks
Van Bael & Bellis (Brussels)
On 23 July 2009, the Commission adopted a temporary Communication on restructuring aid to banks. This Communication complements the previously adopted guidelines on State guarantees, recapitalization and impaired assets in the banking sector and sets out how the Commission will assess (...)

The European Commission publishes a communication on the return to viability and the assessment of restructuring measures in the financial sector
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"Restructuring banks in crisis — overview of applicable State aid rules"* 1. A complete set of State aid rules for financial institutions in the current crisis (1 The Communication of 22 July 2009 on the return to viability and the assessment of restructuring measures in the financial sector (...)

The European Commission issues a communication announcing that restoration of competition in the banking sector is an EU priority
Cadwalader Wickersham & Taft (Brussels)
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Jones Day (London)
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Cadwalader Wickersham & Taft (Brussels)
The global financial crisis has seen competition authorities come under pressure to relax their interpretation of competition laws in order to help companies weather the current financial storm. In general, competition authorities have been reluctant to do so, on the basis that in such (...)

The European Commission approves restructuring State aid granted to a Luxembourg bank (Kaupthing Bank Luxembourg)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2009"* On 10 June 2009, Luxembourg informed the Commission that a € 320 million loan had been set up for restructuring Kaupthing Bank Luxembourg SA. Since the primary purpose of the loan was to compensate depositors with the Belgian (...)

The European Commission temporarily clears a recapitalisation scheme and an asset relief measure offered to regional German bank (Landesbank Baden-Württemberg)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2009"* The European Commission granted temporary clearance to a recapitalisation scheme and an asset relief measure offered to Landesbank Baden-Württemberg (LBBW) by the German State of Baden-Württemberg. The asset relief is to be (...)

The European Commission adopts a communication on the return to viability and the assessment of restructuring measures in the financial sector in the current crisis under the State aid rules
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2009"* On 22 June 2009 the Commission adopted a Communication on the return to viability and the assessment of restructuring measures in the financial sector in the current crisis under the State aid rules (2). This is the fifth (...)

The European Commission approves a German scheme designed to further stabilize the financial markets by providing financial institutions with the possibility of asset relief
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2009"* Under EU state aid rules, the European Commission approved a German scheme designed to further stabilise the financial markets by providing financial institutions with the possibility of asset relief. This scheme is in addition (...)

The European Commission conditionally approves State aid to German bank (WestLB)
European Commission - DG COMP (Brussels)
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European Commission - DG MOVE
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European Commission - DG COMP (Brussels)
"The WestLB restructuring decision"* I. Introduction On 12 May 2009, the European Commission took a final decision on State aid given to German bank WestLB AG, by approving a €5 billion risk shield. This conditional decision followed an in-depth investigation opened in October 2008, and was (...)

The European Commission approves recapitalisation of German bank (Commerzbank)
German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht )
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European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"The Commerzbank recapitalisation decision: providing legal certainty in times of crisis and guidance for future restructuring"* On 7 May 2009 the Commission approved the € 18 billion recapitalisation of Commerzbank AG (“Commerzbank”). It was one of the first decisions the Commission has taken on (...)

The European Commission approves the UK homeowners mortgage support scheme to help households affected by the financial downturn
European Commission - DG COMP (Brussels)
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Groupe Holder
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"State aid: main developments between 1 January and 30 April 2009"* On 21 April 2009, the Commission approved the UK Homeowners Mortgage Support Scheme to help households affected by the financial downturn. The scheme aims to reduce the level of home repossessions likely to occur as a result (...)

The UK Government notifies the European Commission its intention to set up a scheme to alleviate the funding constraints that banks are facing (Asset-Backed Securities Guarantee Scheme)
European Commission - DG COMP (Brussels)
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Groupe Holder
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"State aid: main developments between 1 January and 30 April 2009"* On 17 April 2009, the UK notified its intention to set up another scheme to alleviate the funding constraints that banks are currently facing. By guaranteeing AAA rated residential mortgage-backed securities (‘RMBS’), the UK (...)

The European Commission temporary approves the illiquid asset back-up facility provided by the Dutch State to a financial group (ING Group)
European Commission - DG COMP (Brussels)
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Groupe Holder
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"State aid: main developments between 1 January and 30 April 2009"* On 31 March 2009, the Commission approved for 6 months the illiquid asset back-up facility provided by the Dutch State to the financial group ING, while at the same time initiating the formal investigation procedure laid down (...)

The European Commission adopts a Communication on impaired assets, providing guidance to Member States on how to handle asset relief measures
European Commission - DG COMP (Brussels)
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Groupe Holder
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"State aid: main developments between 1 January and 30 April 2009"* In addition to the specific banking communications it has already issued, the Commission adopted on 25 February 2009 a Communication on ‘Impaired assets’. This Communication provides guidance to Member States on how to handle (...)

The Irish authorities notify the European Commission of their intention to recapitalise national Bank with € 1.5 billion (Anglo Irish Bank)
European Commission - DG COMP (Brussels)
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Groupe Holder
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"State aid: main developments between 1 January and 30 April 2009"* On 19 December 2008, the Irish authorities informed the Commission of their intention to recapitalise Anglo Irish Bank with €1.5 billion. On 8 January 2009, the Irish authorities formally notified this measure. Due to the (...)

The European Commission adopts a temporary framework for State aid measures providing member States with additional possibilities to tackle the effects of the financial crisis
Van Bael & Bellis (Brussels)
On 17 December 2008, the Commission adopted a temporary Framework for State aid measures to support access to finance in the current financial and economic crisis. The Framework forms part of the European Economic Recovery Plan announced on 26th November and it introduces a number of temporary (...)

The Austrian Supreme Court of Austria suspends, until judgment of the CFI, proceedings under the Austrian Unfair Competition Act on the question whether the sale of a bank constituted State Aid and thus violated the Act (SLAV)
Max Planck Institute for Innovation and Competition (Munchen)
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PETER THYRI Competition Counseling Research
Factual background The privatisation of Bank Burgenland (“BB”) was a condition for the approval of a restructuring aid for Bank Burgenland by the Commission in 2004. In March 2006, following a third and finally successful public tender, Land Burgenland finally sold Bank Burgenland to GRAWE for (...)

The Brussels Court of Appeal rejects State aid pleas in the context of a bank rescue plan (Fortis)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
1. Introduction In order to tackle the financial turmoil of last September, the Belgian State acquired in two steps Fortis Bank. Firstly, on 28 September 2008, the Belgian State (via the “SFPI”, the “Federal Participation and Investment Company”, together with the Luxembourg and the Dutch States (...)

The European Commission adopts a communication on the application of State aid rules to measures taken in relation to financial institutions in the context of the current global financial crisis
European Commission - DG COMP (Brussels)
"The new State aid temporary framework"* I. Introduction: the financial and economic crisis The unprecedented crisis in the international financial markets has created major challenges for the EU. Since the beginning of the crisis, the Council has emphasised the necessity of maintaining the (...)

The Italian Supreme Court annuls a decision of the regional tax Commission which granted tax benefits on the grounds that it constituted unlawful State aid and oders its recovery (Amato Law on public banking system)
EUJUS Law Firm (Rome)
Factual background Law No. 218/90 (the so called “Amato Law”) provided for tax benefits in relation to restructuring operations in the public banking system. The defendant claimed that Law No. 218/90 applied to the specific circumstances in which its company was active and subsequently claimed a (...)

The European Commission considers that the privatisation of publicly owned Austrian bank constitutes a State aid incompatible with EC State aid rules (Bank Burgenland)
DG REGIO Regional and urban policy
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European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"State aid issues in the privatisation of public undertakings - Some recent decisions"* I. Introduction The general definition of State aid is set out in Article 87(1) of the EC Treaty, which prohibits ‘…any aid granted by a Member State or through State resources in any form whatsoever which (...)

The Belgian Council of State ruled that there was no need for the procuring entity of a public tender procedure to inquire about the legality of an underlying State aid received by one of the tenderers
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background This case concerns a public tender procedure in which VZW Merlijn Marketeer (“VZW”) was awarded the assignment to investigate the existing customer relations of the National Bank of Belgium (“Bank”). VWZ’s offer was the most economical, in that it was the lowest price of all the (...)

The Rotterdam District Court declares nul and void public loan guarantees holding that they constitute State aid that should have been notified to the EC (Port of Rotterdam)
Visser, Schaap & Kreijger
In two recent decisions, the Rotterdam District Court held that loan guarantees issued by the Port of Rotterdam (part of the municipality of Rotterdam) were null under the Dutch Civil Code provisions on nullity, as the guarantees were state aid that should have been notified. Background In (...)

The European Commission approves aid to an innovative regional equity platform for SMEs in the UK’s West Midlands to overcome market failure in risk capital (Investbx)
European Commission - DG COMP (Brussels)
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European Commission - DG FISMA
"Commission approves aid to an innovative regional equity platform for SMEs in the UK’s West Midlands to overcome market failure in risk capital"* I. Background On 18 August 2006 the Commission adopted new Community guidelines on state aid to promote risk capital investments in small and (...)

The European Commission rules that preferential tax regimes for financial holdings granted by Luxembourg are incompatible with State aid rules ("Milliardaires" Holdings and Holdings of 1929)
European Commission - Legal Service
"State aid and preferential tax regimes for financial holdings - The Luxembourg’s Exempt 1929 Holdings case"* Taxation and the competitive structure of financial services markets ong> “Traditional” financing has changed considerably in the past century and traditional lending institutions (banks) (...)

The European Commission finds that public participation in Austrian securitisation scheme is not a State aid
European Commission - DG COMP (Brussels)
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Agency for the Cooperation of Energy Regulators (ACER) (Slovenia)
"Commission finds public participation in Austrian securitisation scheme is not State aid"* On 9 February 2006, the Commission authorised the public participation of Austria Wirtschaftsservice GmbH (aws), a public body that administers the award of grants to Austrian companies, in a bond (...)

The European Commission orders Germany to recover more than €3 billion, plus interest, from public banks (WestLB)
DG REGIO Regional and urban policy
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European Commission - DG COMP (Brussels)
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DG REGIO Regional and urban policy
"German Landesbanken: Recovery of more than €3 billion, plus interest, from WestLB and six other public banks"* On 20 October 2004, the European Commission concluded its long-standing investigation of the transfer of public assets, in the 1990s, to seven German public banks (Landesbanken) by (...)

The European Commission applies the market economy investor principle in State aid cases concerning German State owned companies (German Landesbanken Cases)
E.CA Economics (Berlin)
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European Commission - DG COMP (Brussels)
"Applying the Market Economy Investor Principle to State Owned Companies — Lessons Learned from the German Landesbanken Cases"* Introduction The Market Economy Investor Principle (MEIP) is in the Commission’s practice one of the entry points for economic analysis in State aid cases. Its purpose (...)

The European Commission approves State aid in the banking sector (Bankgesellschaft Berlin)
European Commission - DG COMP (Brussels)
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European Commission - DG ENER
"Enforcement of State aid control in the banking sector: Bankgesellschaft Berlin AG"* On 18 February 2004, following an extensive investigation, the Commission decided to approve the restructuring aid for the ailing group Bankgesellschaft Berlin AG worth almost € 10 billion. This amount (...)

The European Commission proposes to French authorities to phase out State guarantee granted to a public financial institution (CDC IXIS)
European Commission - DG EAC
"Where state guarantees supporting commercial banking activities distort competition, they must be abolished: the case of CDC IXIS"* Introduction Commission decisions have consistently confirmed that the financial sector is subject to competition rules, including those relating to state aid, (...)

The EU Court of First Instance issues its judgment in a case concerning transfer of capital to a German public law credit institution clarifying major policy issues concerning State aid rules (WestLB)
European Commission - DG COMP (Brussels)
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European Commission - DG ENER
"The judgement of the Court of First Instance concerning the transfer of capital to Westdeutsche Landesbank Girozentrale (WestLB)"* On 6 March 2003 the Court of First Instance (CFI) issued the long-awaited judgement in the WestLB case concerning the transfer of the Wohnungsbauförderungsanstalt (...)

The German government accepts the amendment of the European Commission’s proposal for ’appropriate measures’ as regards the system of State guarantees to German public banks (Anstaltslast und Gewährträgerhaftung)
European Commission - DG COMP (Brussels)
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European Commission - DG ENER
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European Commission - DG COMP (Brussels)
"State guarantees to German public banks: a new step in the enforcement of State aid discipline to financial services in the Community"* By letter of 11 April 2002, the German government accepted the amendment of 27 March 2002 of the Commission’s proposal for appropriate measures as regards the (...)

The European Commission decides that a French bank had benefited from an overcompensation by the French State for its operation of savings account system (Crédit Mutuel, Livret Bleu)
European Commission - DG EAC
"Crédit Mutuel – Livret Bleu: Making sure that public services benefit consumers and not intermediaries"* Introduction On 15 January 2002, the Commission decided that Crédit Mutuel had benefited from an overcompensation by the French State, of the costs for operating the Livret Bleu system. (...)

The European Commission decides that tax measures for banks introduced by an Italian law are incompatible with State aid rules and orders their recovery
European Commission - DG MOVE
"The restructuring of the Italian banking sector: State aid cannot assist mergers"* Introduction On 11 December 2001, the European Commission decided that the tax measures for banks introduced by Italian Law n° 461/98 of 23 December 1998 and the related Legislative Decree n° 153/99 of 17 May (...)

The European Commission approves rescue aid of about 2 billion € for German financial institution (Bankgesellschaft Berlin)
European Commission - DG ENER
"Germany – Commission approves rescue aid of about Euro 2 billion for Bankgesellschaft Berlin AG (BGB)"* On 25 July 2001, the Commission approved the Federal Government’s application in respect of rescue aid of about € 2 billion to be granted by the Land of Berlin toBankgesellschaft Berlin AG (...)

The European Commission adopts communication on state aid and risk capital
European Commission - DG COMP (Brussels)
"Commission adopts communication on state aid and risk capital"* On 23 May the Commission adopted a communication on state aid and risk capita.It sets out how the Commission will assess, under the state aid rules, measures designed to promote the growth of risk capital markets. An increase in (...)

The German government accepts the ’appropriate measures’ proposed by the European Commission in order to render the system of State guarantees for public law credit institutions compatible with the State aid rules of the EC Treaty (Anstaltslastand Gewährträgerhaftung)
European Commission - DG ENER
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European Commission - DG COMP (Brussels)
"Germany – Further developments on State guarantees for German public banks – The German Government accepted the ‘appropriate measures’ proposed by the Commission"* The German Government accepted on 18 July 2001 the formal recommendation adopted by the European Commission on 8 May 2001, proposing (...)

The European Commission adopts a formal recommendation on State guarantees for German public banks (Anstaltslast und Gewährträgerhaftung)
European Commission - DG ENER
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European Commission - DG COMP (Brussels)
"Germany — Recent developments on State guarantees for German public banks"* After intensification in the recent months of the contacts with the German Government, the European Commission adopted on 8 May 2001 a formal recommendation, proposing to the German Government so-called ‘appropriate (...)

The European Commission approves the prolongation of risk capital scheme for small technology companies in Germany (’Beteiligungskapital für kleine Technologieunternehmen’)
European Commission - DG COMP (Brussels)
"Germany — Prolongation of the «Beteiligungskapital für kleine Technologieunternehmen», a risk capital scheme for small technology companies"* The European Commission approved on 28 February 2001 the prolongation of a German risk capital scheme for small technology companies. Under the scheme (...)

The European Commission initiates the procedure laid down in art. 88(2) of the EC Treaty with regard to the regional venture capital funds proposed by the UK authorities
European Commission - DG COMP (Brussels)
"Main developments between 1st October and 31st December 2000"* On 18 October 2000 the Commission decided to initiate the procedure laid down in Article 88(2) EC with regard to the Regional Venture Capital Funds proposed by the UK authorities. These funds are intended to fill a gap in the (...)

The European Commission opens the procedure under art. 88 (2) of the EC Treaty concerning Italian fiscal measures to banks and banking foundations over concerns that the measures may constitute unlawful State aid
European Commission - DG COMP (Brussels)
"Main developments between 1st October and 31st December 2000"* On 4 october 2000, the European Commission decided to open the Article 88 (2) procedure into Italian fiscal measures to banks and banking foundations over concerns that the measures, de signed to facilitate mergers in and the (...)

The European Commission authorizes aid for private investors participating in the creation of the high technology fund encouraging risk capital investments for early stage enterprises in high technology sectors in the UK
European Commission - DG COMP (Brussels)
"United Kigdom – The Commission authorizes aid for private investors participating in the creation of the High Technology Fund which is aimed at encourage risk capital investments for early stage enterprises in high technology sectors"* On 12 July, the European Commission authorised the (...)

The French Administrative Supreme Court concluded to absence of State aid in case of an open and non-discriminatory tendering privatisation procedure (CIC/SG-BNP-CCF)
European Court of Justice (Luxembourg)
French Administrative Supreme Court (Conseil d’État, Assemblée), 18 December 1998, Société Générale, Banque Nationale de Paris, Crédit Commercial de France v. Ministre de l’économie, des finances et de l’industrie, Case n° 197175 The liberalization of the bank sector in the European Union initiated (...)

The European Commission issues a report on services of general economic interest in the banking sector
European Commission - DG COMP (Brussels)
"Report on services of general economic interest in the banking sector"* At its meeting in June 1997 in Amsterdam the European Council adopted a Declaration on «Public credit institutions in Germany« mentioning the possibility that «services of general economic interest« might exist also in the (...)

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