6.1 Introduction

The State aid regime for the banking sector, as described in Chapter 3, has not changed as a result of the introduction of the resolution framework. The Commission still assesses State aid awards to failing banks on the basis of the 2013 Banking Communication. Although Ms König, the Chair of the SRB, believes that the 2013 Banking Communication is, in effect, out of date as the EU has taken further steps since the introduction of the 2013 Banking Communication to make sure failed banks can be wound up without sparking a broader crisis, the Commission has not – yet – changed the State aid regime for the banking sector.1 This does not, however, mean that the resolution framework has not had an impact on the exercise of State aid control by the Commission. Since the introduction of the resolution framework, the Commission has to assess State aid granted in the banking sector, not only on compatibility with the internal market, but also on compatibility with the resolution framework (procedural impact). In addition, it has acquired the new role of co-resolution authority since the introduction of the resolution framework (institutional impact).

This chapter first assesses the institutional impact by discussing the different roles of the Commission as a result of the introduction of the resolution framework in section 6.2. It subsequently assesses the procedural impact. Section 6.3 introduces the term ‘resolution aid’ for State aid that is granted in relation to the resolution of banks and discusses what is meant by compliance with ‘intrinsically linked provisions’ of the resolution framework. Section 6.4 discusses the assessment by the Commission of this resolution aid. Section 6.5 discusses the assessment of State aid outside resolution. Section 6.6 further analyses the impact that the resolution framework has on State aid control by the Commission and identifies any challenges in the exercise thereof after the introduction of the resolution framework. Section 6.7 concludes this chapter.