5.2.1 The concept of EPFS

EPFS is defined in Article 2(1)(28) BRRD as “State aid within the meaning of Article 107(1) TFEU, or any other public financial support at supranational level, which, if provided for at national level, would constitute State aid, and that is provided in order to preserve or restore the viability, liquidity or solvency of an institution or group entity of such institution”.1 Therefore, the term EPFS does not only include State aid, as discussed in section 3.3, but also ‘other public financial support at supranational level, which, if provided for at national level, would constitute State aid’ (hereinafter referred to as supranational EPFS).

The concept of State aid has not changed with the introduction of the concept of EPFS in the resolution framework. If funding qualifies as State aid, it is subject to the compatibility assessment by the Commission under Articles 107 and 108 TFEU. If funding does not qualify as State aid, it can be granted without the Commission’s approval. Notwithstanding the foregoing, supranational public funding that does not qualify as State aid (such as SRF contributions) is made subject to State aid control, as discussed below.