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State aid to the banking sector

Author

  • Catrin Karlsson

Summary, in English

This thesis examines the state aid rules of the European Union and the application of these rules on banks. The primary problem that is addressed is what conditions should be fulfilled in order for state aid to banks to be declared compatible with the Common Market according to article 107 3 FEUF. The thesis addresses all kinds of state aid to banks and these have been divided into the following groups; (i) aid to banks (which are not in financial difficulties), (ii) aid to banks in financial difficulties, and (iii) aid to banks during a system crisis.

The application of the state aid rules by the Commission has typically been very formal and there has been incufficient analysis of the actual consequences of aid granted to banks. This thesis is intended to contribute to a more systematic application by the Commission of the state aid rules on banks. Certain conditions must be identified and scrutinized in the application of the state aid rules on banks. Aid measures granted must, in order to be approved, be of public and common interest and the positive effects must be balanced against any negative effects.

In order to achieve public and common interest in every individual case, the aid measures granted must be well balanced, necessary and have a stimulative effect. This thesis examines these conditions within each category of aid to banks. Finally, I identify compensatory measures that may be well suited for banks.

My thesis presents a systematic approach for the application of state aid to banks. In order to this this, I have found it important to describe the meaning of different concepts and conditions. The thesis will contribute to the discussion regarding “less and better targeted aid”.

Publishing year

2011

Language

Swedish

Document type

Dissertation

Topic

  • Law

Keywords

  • Common and pubic interest.
  • competition
  • banking sector
  • State aid law

Status

Published

Supervisor

ISBN/ISSN/Other

  • ISBN: 978-91-7473-170-5

Defence date

28 October 2011

Defence time

10:15

Defence place

Ekonomihögskolan EC 3:207

Opponent

  • MIchael Hellner (Docent)