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IP/10/1635
Brussels, 1 December
State aid: Scoreboard shows continued trend
towards less and better targeted aid despite crisisrelated spike
The volume of national support to the financial sector approved by the
European Commission between October 2008 and October 2010 amounted to
around € 4.5 trillion, the autumn State Aid Scoreboard shows. The amount
actually taken up by banks in 20091 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%2. Excluding the crisis-related support, total aid remained
relatively stable at € 73.2 billion in 2009 or 0.62% of GDP and continued to refocus 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.
1
Whereas the Commission has nearly real-time figures for money committed by Member
States because it has to approve it, when it comes to support actually granted it relies on
Member States annual reports.
2
Around 3% represents liquidity measures other than guarantees.
1
To minimise the impact of the tightening in credit conditions, Member States also
granted aid to the real economy under the Temporary Framework adopted by the
Commission at the end of 2008. The aid consisted mostly of a subsidy of up to
500,000 per company, subsidised loan interests or guarantees and reduced interest
for loans for the production of green products. 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 benefitted a whole industry, the economy or consumers
directly3. 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.
Long-term trends
Excluding the crisis-related support, 'traditional' aid remained stable at € 73.2 billion
or 0.62% of GDP. Aid to industry and services amounted to € 58.1 billion or 0.49% of
GDP of which 84% Member States earmarked for horizontal objectives of common
interest.
The Scoreboard shows Member States are on track with their efforts to re-direct aid
towards horizontal objectives of common interest. Most notably, the Commission
observed a greater focus on regional aid, environmental protection, energy saving
and aid for research, development and innovation. Such objectives are not only less
distortive of competition but also contribute towards reaching the EU 2020 strategic
objectives of smart (e.g. innovation, research and development), sustainable (e.g.
energy efficiency) and inclusive growth (e.g. skills).
The reforms under the State Aid Action Plan 2005 – 2008 (see IP/05/680) have also
continued to bear fruit. Around 19% of total aid is granted through block exemptions.
Another 69% of state aid is assessed by the Commission under aid schemes (see
IP/06/1765 for de minimis Regulation and IP/08/1110 for General Block Exemption
Regulation). Once approved by the Commission, such block exemptions and
schemes allow Member States to grant aid to individual companies without further
Commission scrutiny. In total only 12% of the total aid is the subject of an individual
assessment, giving Member States a high degree of flexibility and low administrative
burden, while compatibility criteria safeguard a level playing field in the internal
market.
The Scoreboard further shows that at the end of June 2010 89% of the total amount
of illegal and incompatible aid had been repaid to the State. This marks a significant
improvement given that at the end of 2004 only 25% had been recovered. In total,
€12 billion have been recovered in this way.
The Scoreboard including its Annex "Fact and figures on State aid in the Member
States" and more statistics and indicators for all Member States, are available on the
Europa website:
http://ec.europa.eu/comm/competition/state_aid/studies_reports/studies_reports.html
3
A measure is only a State aid if it benefits a single company or groups of them. Not if it is
a general measure.
2
Summary table on maximum approved crisis-related aid volumes to the financial
sector
(In € billion)
Approved
volume 2008 2010
Schemes
for guarantees
for recapitalization
measures
3 478.96
3026.28
348.64
for asset relief interventions
62.17
for liquidity measures other
than guarantee schemes
41.87
Ad hoc interventions in favour of
individual financial institutions
1109.94
for guarantees
458.97
recapitalization measures
197.44
for asset relief interventions
339.63
for liquidity measures other
than guarantees
113.9
TOTAL
4 588.90
3
Approved amounts per Member State (all schemes and ad hoc measures; in € billion)
Approved amounts
2008 - 2010
United Kingdom
Ireland
Denmark
Germany
France
Spain
Netherlands
Belgium
Sweden
Austria
Greece
Finland
Portugal
Italy
Slovenia
Luxembourg
Hungary
Poland
Latvia
Slovakia
Cyprus
Lithuania
850.30
723.31
599.66
592.23
351.10
334.27
323.60
328.59
161.56
91.70
78.00
54.00
20.45
20.00
12.00
11.59
10.33
9.24
8.78
3.46
3.00
1.74
Total
4588.90
Total aid as % of GDP (EU-27; data as of 1992
Total State aid as % GDP - EU-27, as of 1992
4
3.5
% of GDP
3
2.5
2
1.5
1
0.5
0
1992
1993
1994
1995
1996
1997
1998
1999
EU-27
2000
2001
2002
2003
EU-27 (excluding crisis measures)
4
2004
2005
2006
2007
2008
2009
Less and better targeted aid: Key figures (crisis measures excluded)
State aid in billion EUR,
2009
FIGURES
EXCLUDE
CRISIS
MEASURES
Total
State Aid
less
railways
Total State
Aid for
industry
and
services
(i.e. less
agriculture,
fisheries
and
transport)
State aid as % of GDP,
2009
Total
State Aid
less
railways
Total State
Aid for
industry
and
services
(i.e. less
agriculture,
fisheries
and
transport)
Trend in the share of aid
to GDP, 2004 - 2009 in %
points of GDP(1)
Total aid
less
railways
Total state
aid for
industry and
services
Share of
aid to
horizontal
objectives
as % of
total aid
for
industry
and
services,
2009
Trend in
the share
of aid to
horizontal
objectives
as a % of
total aid,
2004 2009 in %
points (1)
5.7
EU 27
73.2
58.1
0.6
0.5
-0.08
0.00
84
EU 15
65.1
53.4
0.6
0.5
-0.07
0.01
85
2.8
EU 12
8.1
4.7
0.9
0.5
-0.19
-0.13
76
29.5
Belgium
2.0
1.6
0.6
0.5
0.13
0.13
100
0.5
Bulgaria
Czech
Republic
Denmark
0.7
0.03
2.1
0.1
1.42
-0.09
100
21.0
0.9
0.7
0.7
0.5
0.16
0.18
88
-1.9
2.1
1.9
1.0
0.9
0.06
0.08
97
0.7
Germany
16.7
15.2
0.7
0.6
-0.11
-0.10
86
3.9
Estonia
0.04
0.01
0.3
0.1
-0.04
-0.02
100
0.0
Ireland
1.5
0.7
0.9
0.5
0.46
0.07
89
5.6
Greece
2.0
1.8
0.8
0.7
0.21
0.31
87
-5.0
Spain
5.7
4.9
0.5
0.5
0.03
0.04
80
9.9
France
14.7
11.7
0.8
0.6
-0.32
0.09
79
-0.8
Italy
5.7
4.6
0.4
0.3
-0.08
-0.07
84
2.5
Cyprus
0.2
0.1
1.0
0.4
-0.41
-0.42
95
39.4
Latvia
0.2
0.0
1.0
0.1
-0.06
0.01
100
1.3
Lithuania
0.2
0.1
0.8
0.3
0.21
0.16
100
15.4
Luxembourg
0.1
0.1
0.3
0.2
-0.04
0.03
100
0.0
Hungary
1.4
0.9
1.5
1.0
-0.82
0.18
76
19.1
Malta
0.1
0.1
2.0
1.7
-1.23
-1.14
23
5.1
Netherlands
2.4
1.7
0.4
0.3
-0.01
0.02
99
5.2
Austria
1.7
1.0
0.6
0.4
-0.02
-0.07
99
21.3
Poland
2.9
2.2
0.9
0.7
-0.18
0.00
71
22.8
Portugal
1.6
1.6
1.0
0.9
0.18
0.20
19
1.0
Romania
0.8
0.2
0.7
0.1
-0.27
-0.85
50
27.5
Slovenia
0.3
0.2
0.9
0.7
-1.55
-1.40
91
69.4
Slovakia
0.3
0.2
0.5
0.4
0.14
0.12
90
18.3
Finland
2.1
0.8
1.2
0.5
-0.14
0.05
99
0.7
Sweden
United
Kingdom
2.6
2.4
0.9
0.8
-0.04
-0.03
100
0.0
4.0
3.2
0.3
0.2
0.00
0.02
91
-0.8
Norway
2.8
2.4
1.02
0.87
n.a.
n.a.
2.8
2.4
0.04
0.04
0.43
0.43
n.a.
n.a.
0.04
0.04
0.001
0.001
0.04
0.04
n.a.
n.a.
0.001
0.001
Iceland
Liechtenstein
Data cover all State aid measures as defined under Article 107 TFEU (former Article 87(1) of the EC Treaty) that
Member States awarded and the Commission examined. The Community rules on agricultural and fisheries
policies are not covered by the EEA Agreement. Hence, aid to these sectors is not included for the EFTA
countries. (1) Change in percentage points between annual average of 2004-2006 and 2007-2009. Source: DGs
Competition, Energy, Agriculture, Maritime Affairs and Fisheries and EFTA Surveillance Authority. (2) Not
available (3) The EFTA Surveillance Authority assesses crisis aid granted in the EFTA countries. Crisis measures
are not yet included in this amount.
5