Wednesday, June 20, 2012
Posted by D. Daniel Sokol
Conor Quigley QC - Serle Court provides a Review of the Temporary State Aid Rules Adopted in the Context of the Financial and Economic Crisis.
ABSTRACT: Following the onset of the financial crisis in 2007, the European Commission adopted a series of measures aimed at ensuring that State aid to the banking sector was structured in a coordinated manner so as to ensure recovery in the financial markets. The Commission published a Working Paper in October 2011, setting out the effects of those measures, and this is reviewed in this article. Whereas DG Comp was faced with a difficult and complex task, it generally handled the matter of bank restructuring satisfactorily from a State aid perspective. Significant questions remain as to the efficacy of some of the other measures adopted and their interaction with broader issues of banking regulation, the single market, and fiscal union.