7.7 Conclusion

This chapter discussed the preliminary steps in the Commission’s assessment of bank State aid cases. As set out in Part I of this chapter, the first step is to establish whether the measure constitutes State aid. As set out in Part II of this chapter, the second step is to establish whether the compatibility of the aid measure has to be assessed on the basis of Article 107(3)(b) TFEU. The essential criterion in that respect is the systemic importance of the bank.

After taking the preliminary steps, the Commission proceeds with the compatibility-assessment. The first stage of the compatibility-assessment concerns the appropriateness, necessity and proportionality of the aid measure. When is a State aid measure appropriate, necessary and proportionate and which characteristics of the case are relevant to that assessment? This question will be addressed in the next chapter.