7.6 Assessment on the basis of Article 107(3)(b) or (c) TFEU?

When an aid measure falls under the scope of Article 107(1) TFEU, it is prohibited. However, it may be declared compatible if it falls under one of the exceptions provided for in Article 107(2) and (3) TFEU. With respect to State aid to ailing banks, the relevant provisions are 107(3)(b) and (c) TFEU. Art. 107(3)(b) TFEU provides that aid to remedy a serious disturbance in the economy of a Member State may be considered to be compatible with the internal market. Pursuant to Art. 107(3)(c) TFEU, aid to facilitate the development of certain economic activities or of certain economic areas may be considered to be compatible with the internal market. The compatibility of State aid to banks can thus be assessed on the basis of Article 107(3)(b) and (c) TFEU.