Both Commissioners and banking industry representatives said that, although the exceptional state aid measures which had been implemented at the height of the financial crisis needed to be adapted, they should not be completely discontinued since the economic situation did not yet permit this. "We still need state aid schemes to help the restructuring plans but the exceptional measures will be tighter in 2011", said Competition Commissioner Joaquín Almunia. Internal market and financial services Commissioner Michel Barnier also defended the gradual phasing-out approach, arguing that this would help in the "creation of a new, responsible system with which to avoid future crises".
Are we seeing the benefits?
Many MEPs asked if the vast bailouts undertaken by Member States had provided tangible benefits to the real economy and citizens. "Did the bailouts and subsequent state aid measures just help maintain the old system or have they helped bring in a new economy?" Sylvie Goulard (ALDE, FR) wanted to know. "Are there indications that banks are passing on the cheap money they have been given to the real economy?" asked José-Manuel Garcia-Margallo (EPP, ES).
Mr Almunia replied that figures do suggest credit is being passed on to the real economy but that banks will need healthier balance sheets and less risk aversion before such transfers pick up more seriously.
"At the beginning of the crisis we had to support whatever could stand on its legs" Mr Almunia said in reply to Ms Goulard's question. "Now however, things have changed", he continued. "Our aim is to build a new system where banks are there for financing long-term projects not aiming at fast profits", Mr Barnier added.
Role of the ECB
Philippe Lamberts (Greens/EFA, BE) asked Mr Almunia whether any of the ECB's exceptional measures could be regarded as state aid and whether they were distorting competition. Mario Borghezio (EFD, IT) asked if the ECB could in any way cancel some of the Member State's public debt as had been proposed by certain academics. Replying, Mr Almunia said the ECB had a monetary policy to run, stressing that "if we interfere with what the ECB does then that is the end of central bank independence". On the ECB's role in public debt, he said that the buying of sovereign bonds by the ECB was all that could be done.
State aid guidelines
Antolín Sanchez Presedo (S&D, ES) suggested that the state aid guidelines should allow SMEs to have access to finance other than through credit from banks. Derk Jan Eppink (ECR, BE) asked why the state aid guidelines had been applied differently to different banks across Europe. Mr Almunia replied that the financial markets in which one bank works are different to those existing for another bank and that the guidelines had to cater for this.
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