Commission extends crisis State aid rules for banks, Amelia - Main contents
| date | November 30, 2012 |
|---|---|
| city | Amelia, Italy |
| attending | J. (Joaquín) Almunia Amann i et al. |
| organisation | European Commission (EC) i |
On 30 November, the European Commission is expected to extend the special State aid rules for banks during the crisis. The principle of the extension of the crisis regime has already been agreed in view of the continued tensions in the financial markets. But the Commission has, in the words of VP Almunia, to "clarify and update the rules on pricing and other conditions to facilitate the implementation of the package" (
) agreed by Member States in October to strengthen the capital of banks and provide guarantees on their liabilities, and to reflect changed market conditions. The Commission will therefore spell out the conditions and modalities of this extension.
The current crisis State aid rules were introduced in autumn 2008 after the fall of Lehman Brothers which triggered a financial crisis. They have been maintained since but with adaptations reflecting the market conditions but also the duration of the crisis itself. In July 2010, the remuneration of the government guarantees on banks' debt was increased and since the beginning of 2011 all banks receiving a capital injection or an impaired asset guarantee need to present a restructuring plan regardless of the size of the support relative to their risk-weighed assets. The Commission's October Communication A Roadmap to stability and growth already announced the intention to extend the regime beyond 2011 and outlines a 5-point strategy to break the vicious circle between doubts over the sustainability of sovereign debt, the stability of the banking system and the EU's growth prospects, including a plan to strengthen the resilience of the banking sector.
Press conference by Vice President Joaquín Almunia in charge of Competition Policy (time to be confirmed).
IP + Memo giving an overview of all State aid decisions and of investigations still going on.
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Available on EbS
Vice-President Joaquín Almunia's speeches on this subject:
and
For the temporary rules established in response to the economic and financial crisis go to:
http://ec.europa.eu/competition/state_aid/legislation/temporary.html
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Financial Sector and EU Financial Supervisory Bodies – 2011
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Cross-border crisis management in the banking sector
Amelia Torres: +32 2 295 4629
Maria Madrid: +32 2 295 4530
Maria.madrid-pina@ec.europa.eu
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