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State Aid Scoreboard 2013 > Aid in the context of the financial and economic crisis

The financial crisis triggered turmoil on the financial markets in 2008 and called for massive 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 and avoiding a systemic crisis. The effects of the crisis on the financial markets weakened during 2012 but Member States continued to provide critical support to financial institutions through a number of State aid measures. In addition to this, during the last few years, EU governments made use of the Temporary Framework rules to provide assistance to the real economy, seeking to alleviate the negative effects of the economic crisis.

Aid to the financial sector

Between 1 October 2008 and 1 October 2013 the Commission took more than 400 decisions authorising State aid measures to the financial sector. In the period 2008-2012, the overall volume of aid used for capital support (recapitalization and asset relief measures) amounted to € 591.9 billion (4.6 % of EU 2012 GDP). The guarantees and other form of liquidity supports reached its peak in 2009 with an outstanding amount of € 906 billion (7.7 % of EU 2012 GDP). The crisis intensity has gradually weakened in many EU countries since then, and the outstanding amount of liquidity support has dropped to € 534.5 billion (4.14 % of EU 2012 GDP) in 2012.

Guarantee on liabilities

In 2009, the outstanding amount reached € 835.8 billion (7.1 % of EU 2012 GDP), which represents the peak during the last five years. Ever since then, the EU 27 outstanding amount has been decreasing. In 2012, outstanding guarantees amounted to € 492.3 billion (3.8 % of EU 2012 GDP). (See more information here).

During the last five years since the guarantee on liabilities programs have been in place, only € 2 billion of the total guarantees provided have been called. Meanwhile, banks and other assisted financial institutions have been paying fees in return for the guarantees used. Eurostat data shows that for the period 2008-2012 EU governments received € 32.9 billion (0.26 % of EU 2012 GDP) in guarantee fees. (See more information here).

Interactive map

Recapitalization

Recapitalization is the second most used instrument to support the financial sector after the guarantees on liabilities. In the period 2008-2012, Member States have granted an overall amount of € 413.2 billion (3.2 % of EU 2012 GDP) in recapitalization measures. (See more information here).

The four countries that supported their banks most with capital measures during these years were the UK (€ 82 billion), Germany (€ 64 billion), Ireland (€ 63 billion), and Spain (€ 60 billion). The top receiving banks were RBS (46 billion), Anglo Irish Bank (32 billion), and Bankia (22 billion).

Some financial institutions recapitalized at the outset of the crisis have already started repaying the assistance received.
According to the Eurostat data, the governments have received € 92.1 billion (0.7 % of EU 2012 GDP) in revenues related to recapitalization and asset relief measures (and liquidity measures other than guarantees) during the last five years. (See more information here).

Interactive map

Direct Short Term Liquidity support

In addition to guarantees on liabilities, some Member States have been providing a direct short term liquidity support to banks and other troubled financial institutions. The outstanding liquidity measures reached their peak of € 70.1 billion (0.6 % of EU 2012 GDP) in 2009.The EU 27 outstanding amount in 2012 dropped down to € 42.2 billion (0.33 % of EU 2012 GDP). (See more information here)

In fact not many EU countries have made use of this instrument and granted liquidity support directly to the financial sector. Spain and Netherlands account for more than a half of the outstanding volume in the peak year.

Asset relief measures

For the period 2008-2012 Member States provided asset relief measures for a total of € 178.7 billion (1.4 % of EU 2012 GDP). (See more information here).

Remuneration

According to Eurostat data, in return of their financial support the governments have received € 92.1 billion (0.7 % of EU 2012 GDP) in revenues related to recapitalization and asset relief measures (and liquidity measures other than guarantees) during the last five years.

In total, adding the fees received from guarantees (€ 32.9 billion)as of end 2012 Member States have received a total of € 125 billion (0.97% of EU 2012 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 within the financial crisis context. 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 public interventions during the crisis 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, directly relating to the support for financial institutions. The aim is to show a complete picture of actual and potential impacts on fiscal indicators. The data are 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. These data on government interventions during the financial crisis differ 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 – 2012

Total aid amounts granted for recapitalization and asset relief measures , 2008 - 2012

Total aid amounts granted and revenues/fees received, by aid instrument, 2008 - 2012

*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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