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State Aid Scoreboard 2014 > Aid in the context of the financial and economic crisis

The financial crisis called for intervention by European governments to reduce the adverse effects of the shock. State aid to financial institutions has been crucial for restoring confidence in the financial sector. Negative effects on the financial markets weakened during 2013 but Member States continued to provide critical support to financial institutions through a number of State aid measures.

Aid to the financial sector

Between 1 October 2008 and 1 October 2014, the Commission took more than 450 decisions authorising State aid measures to the financial sector. The bulk of this aid represented guarantees on liabilities. However, Member States have not actually used (implemented) all the aid approved. The guarantees and other forms of liquidity support peaked in 2009. The crisis intensity has receded in many EU countries since, and the outstanding amount of liquidity support dropped significantly in 2013.

Guarantees on liabilities

Between 1 October 2008 and 1 October 2014, the Commission authorized a total aid of EUR 3 892.6 billion (29.8 % of EU GDP in 2013) for guarantees on liabilities. This helped to establish confidence on the financial markets while financial institutions have effectively used less than a quarter of the amount approved. The outstanding amount peaked in 2009 at EUR 835.8 billion (6.39 % of EU 2013 GDP), and has decreased since. In 2013, outstanding guarantees amounted to EUR 352.3 billion (2.7 % of EU 2013 GDP). (See more information here).

While since 2008, the guarantees on liabilities programs have been in place, only EUR 3.13 billion of the total guarantees provided have been called. (See more information here).

Financial sector data

Recapitalisation

Recapitalisation is the second most used instrument to support the financial sector after the guarantees on liabilities. The Commission has authorized an overall aid amount of EUR 821.1 billion (6.3 % of EU 2013 GDP) in the last six years. In 2008-2013, Member States have granted an overall amount of EUR 448 billion (3.4 % of EU 2013 GDP) in recapitalisation measures. (See more information here).

The four countries that supported their banks the most in 2008-2013 years are the UK (EUR 100 billion), Germany (EUR 64 billion), Ireland (EUR 63 billion), and Spain (EUR 62 billion). The top receiving banks are RBS (50 billion), Anglo Irish Bank (32 billion), and Bankia (22 billion).

Some financial institutions that were recapitalized at the outset of the crisis have already started repaying the assistance received. (See more information here).

Liquidity measures data

Direct Short Term Liquidity support

In addition to guarantees on liabilities, some Member States have provided a direct short term liquidity support to banks and other troubled financial institutions. Since 2008, the Commission has approved aid amounting to EUR 379.9 billion (2.9 % of EU 2013 GDP) for liquidity measures. However, Member States have practically used only a very small amount in comparison to the total approved. The outstanding liquidity measures peaked in 2009 reaching EUR 70.1 billion (0.5 % of EU 2013 GDP). The EU 28 outstanding amount in 2012 dropped down to EUR 34.5 billion (0.26 % of EU 2013 GDP). (See more information here).

Only some EU countries have granted liquidity support directly to the financial sector. Spain and the Netherlands account for more than a half of the outstanding amounts in the peak year.

Asset relief measures

In 2008-2013, Member States provided asset relief measures reaching EUR 188.2 billion (1.4 % of EU 2013 GDP) while the total aid approved was EUR 669.1 billion (5.1 % of EU 2013 GDP). (See more information here).

Remuneration

According to Eurostat data, since 2008 in return for their financial support, governments have received EUR 109.6 billion (0.8 % of EU GDP in 2013) in revenues related to recapitalisation and asset relief measures (and liquidity measures other than guarantees).

Adding the fees for guarantees (EUR 38.2 billion), by end 2013 Member States received a total of EUR 147.8 billion (1.1 % of EU 2013 GDP) in revenue in exchange for their support to the banks. (See more information here).

Collection of statistics on State aid and public support to the financial sector in the context of the on-going financial crisis

Different concepts can be applied when measuring the public support provided to financial institutions in the context of the financial crisis. State Aid Scoreboard reports on State aid within the meaning of Article 107(1) TFEU and is based on information collected from the Member States on the basis of Commission Regulation (EC) 794/2004. Member States report State aid that they provided to financial institutions on the basis of a specific methodology in line with the State Aid banking Communications (for further details see Conceptual and methodological remarks).

While the purpose of the State Aid Scoreboard is to provide data on State Aid within the meaning of Article 107(1) TFEU, the Commission also collects data on the effects of crisis-related interventions on government finances (government deficit/surplus and debt). As part of the bi-annual Excessive Deficit Procedure (EDP) reporting in end-March and end-September, Eurostat collects data on government interventions during the financial crisis to support financial institutions with the objective to show a actual and potential fiscal impacts. The data is therefore presented in two parts: part 1 shows actual impacts of interventions on government deficit/surplus and part 2 shows the actual and potential impacts on government debt. Eurostat publishes individual tables for EU Member States (where there were reportable interventions) and a summary table with the aggregated data for the EU and the Euro area. This data on government interventions during the financial crisis differs from the State aid amounts authorized by the Commission and used by the EU Member States. (see more in Conceptual and methodological remarks)

Collection of overview tables

Total aid outstanding amounts for guarantees and other liquidity measures, 2008 – 2013

Total aid amounts granted for recapitalisation and asset relief measures , 2008 - 2013

Total aid amounts granted and revenues/fees received, by aid instrument, 2008 - 2013

*Data provided by Eurostat. Different methodologies are applied to measure the State aid and the government assistance to financial sector (see more here)
**The figures 'Used' for other liquidity measures represent the maximum outstanding amount (peak) over all years
***The figures 'Used' for guarantees represent guarantees called (data provided by Eurostat).

Aid to the real economy: temporary framework

State aid granted under the temporary framework

Conceptual and methodological remarks (crisis aid)

  
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