* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.
Support for Illiquid but Solvent Banks*
State aid may be granted to solvent banks which face temporary liquidity difficulties.
State aid rules have their own logic and are applied independently of other policy areas. However, in certain situations, the Commission enforces State aid rules in conjunction with linked provisions in other fields. A typical example is taxes levied on agricultural products to raise revenue to fund related activities such as marketing of agricultural products or research in particular animal or plant diseases. Another example is the granting of aid in the form of liquidity support to solvent banks or aid to facilitate the resolution of failing banks. The case which is reviewed in this article shows how the Commission ensures compliance with two
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