7.2.3.3 Added value of ex ante restructuring under the resolution framework

Table 11 showed that the resolution framework introduced the possibility of ex ante restructuring, that is before the bank experiences financial difficulties. In the author’s view, the possibility for resolution authorities to enforce ex ante restructuring on the basis of the recovery and resolution plans has a true added value compared to restructuring under the State aid regime, which always takes place on an ex post basis. As stated by Laprévote and Coupé, the Commission’s powers under Article 107 and 108 TFEU are limited to assessing (and authorizing) State aid granted by Member States, and not to prevent this aid being granted in the first place. Absent of any State aid measure, the Commission does not have regulatory powers to enforce preventative measures.1 The resolution framework could therefore be seen as being complementary to the State aid regime in so far it enables resolution authorities to enforce ex ante restructuring, even outside the situation in which State aid is granted. The resolution framework could however also be seen as forestalling the State aid regime, since banks that get in the situation where they require State aid are already the subject of a recovery and resolution plan. The cooperation between the Commission and the resolution authorities is therefore important in order to ensure an efficient restructuring process, as further discussed in section 7.3.2.