State Guarantees* The amount of State aid in a guarantee that makes possible the granting of a loan to a well-collateralised firm in difficulty is not the difference in premium but the difference in interest rates. Beneficiaries of guarantees not notified to the Commission do not have any remedy under EU law. Introduction Last week’s article examined State aid in the form of soft loans. This week, I focus on a related issue: guarantees. Four recent judgments had to determine whether state guarantees constituted State aid and, if yes, how much aid was involved. Of course, once the existence of State aid was established, then came the assessment of its compatibility with the internal market. The judgments concerned two cases from Portugal, one from Germany and another form Hungary.
The EU Court of Justice and General Court explain how to determine whether state guarantees constitute State aid and how much aid is involved (Banco Privado Português)
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