1.3.2 Scientific and social relevance of the research question

The literature on public funding of failing banks is mainly written from an economic, political and social perspective.1 This dissertation aims to contribute to the ongoing debate on public funding of failing banks from a legal point of view.2 The debate is multi-angled, as it does, for example, cover issues in relation to finding the balance between financial stability, competition and protecting taxpayers, the desirability of public funding, the shift of powers from Member States to European institutions, such as the ECB and the SRB, the completion of the Economic and Monetary Union (EMU) and the development of the internal market in and outside the Eurozone.

The ongoing turmoil in the Italian banking sector shows that such a debate is still necessary.3 Also, at the time of writing this dissertation, 10 years after the start of the GFC, predictions of a new crisis are already being made.4 Although no one hopes for a new systemic crisis, crises can also contribute to necessary reforms and progression. It is because of the GFC that we now have the resolution framework for the banking sector, which makes the EU hopefully more resilient to a next crisis.

Taking into account the very short timeframe in which the resolution framework has been adopted, it needs more time, however, to be further completed and solidified. This dissertation aims to contribute to that process by focussing on the coherence between the State aid regime for the banking sector and the resolution framework. It may be of interest not only to policymakers, but also to practitioners dealing with questions from clients in practice. In addition, it aims to contribute to the scholarly debate by engaging in the development of arguments in discussions that are not yet settled. Ultimately, this dissertation aims to ensure that the law is correctly and transparently applied in the realization of EU goals in order to (re)gain the trust of EU citizens.