State aid to banks (IVOR nr. 109) 2018/13.4.2:13.4.2 Has the Commission consistently taken into account this relevant characteristic?

State aid to banks (IVOR nr. 109) 2018/13.4.2

13.4.2 Has the Commission consistently taken into account this relevant characteristic?

Documentgegevens:

mr. drs. R.E. van Lambalgen, datum 01-12-2017

Datum: 01-12-2017
Auteur: mr. drs. R.E. van Lambalgen
JCDI: JCDI:ADS584778:1
Vakgebied(en): Financieel recht / Europees financieel recht
Mededingingsrecht / EU-mededingingsrecht

The analysis of the decisional practice reveals that there are not many cases that are characterised by market-opening measures. In fact, these measures can only be found in the cases of the Irish banks.1

In Ireland, seven financial institutions received State aid (Bank of Ireland, Anglo/INBS, AIB/EBS, Quinn Insurance, IL&P), while only the restructuring plans of Bank of Ireland, AIB/EBS and IL&P contained market-opening measures. There are no market-opening measures in the cases of Anglo/INBS and Quinn Insurance. This could be explained by the fact that Bank of Ireland, AIB/EBS and IL&P continued their economic activities (i.e. C-context), whereas Anglo/INBS and Quinn Insurance were wound-down (i.e. W-context).

It should be pointed out that market-opening measures only appear in the cases on the Irish banks. Perhaps this can be explained by the fact that beneficiary banks in other Member States committed to reduce their activities in their home market, while the Irish banks benefiting from State aid did not reduce their activities in Ireland. The balance sheet reductions in the case of Bank of Ireland concerned mainly the UK and international markets.2

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In that regard, Franchoo, Baeten & Solek (2015, p. 613) remark that – apart from Ireland – the Member States have been “less than creative”.

Bank of Ireland, SA.33443, 20 December 2011, para. 179. See also para. 175: “There is still no sign that foreign competitors, whether incumbent or new, are willing to increase their presence in the Irish market in the short-term. When assessing the measures addressing distortion of competition associated to the restructuring of Bank of Ireland, the Commission has therefore to take into consideration the lack of potential investors on the short-term, and the retrenching of several foreign banks from Ireland.”