The amount actually taken up by banks in 2009 is around €1.1 trillion. The bulk (76%) of this support comes in the form of State loans or guarantees to maintain interbank financing which would only have an impact on public finances, if they were called upon, whereas recapitalisation represents 12% and impaired asset relief 9%. Excluding the crisis-related support, total aid remained relatively stable at €73.2 billion in 2009 or 0.62% of GDP and continued to re-focus on less distortive horizontal objectives such as aid for research and innovation, protection of the environment and support to SMEs.
Commission Vice-President in charge of competition policy Joaquín Almunia commented: "The financial crisis led Member States to commit huge amounts of money to preserve financial stability. Whilst vital state aid to the financial sector has been permitted under specially adapted, crisis-specific rules, state aid to the non financial sector has remained broadly stable, and a positive aspect is that, in these circumstances, Member States have continued to re-orient State subsidies to research, environmental protection and other general-interest objectives, which create growth and jobs."
Aid to overcome the financial and economic crisis
Between 2008 and September 2010, €4,588.9 billion of aid was made available to financial institutions. However, the amount of public support actually used in 2009 was much lower and stood at €1,106.6 billion. For 2008 it was €957 billion.
The bulk of the support (76%) also came in the form of State guarantees. This is followed by ad hoc interventions in favour of individual banks (26%) through recapitalisations, asset relief interventions and other measures.
The coordinated action by Member States to support banks along with the introduction by the Commission of crisis-specific State aid rules avoided the collapse of the financial sector and limited distortions of competition within the European Union's single market.
The amount committed in approved schemes between December 2008 and 1 October 2010 is €82.5 billion. This does not include 'cash-for-clunker', temporarily-reduced social security contributions and other measures that have benefited the whole industry, the economy or consumers directly. The amount taken up is also much lower. Member States tried to fix aid envelopes of a sufficient size to reassure the markets. However both the availability of market funding for some companies on one hand, and budgetary constraints on the other contributed to smaller actual use of the funds.
© European Commission
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