6.2.1.2 Introduction of supranational EPFS

With the introduction of the resolution framework, the SRF was also introduced: a form of supranational EPFS, similar to the ESM DRI. Both supranational funding instruments have been made subject to the State aid rules independent of their qualification as State aid. For SRF contributions, this is laid down in Article 19 SRMR. For the ESM DRI, this is laid down in Article 1(3) of the ESM DRI Guideline. As a result, the Commission is also authorized to assess the use of the SRF and the ESM DRI.

If the SRF contributions and ESM DRI were not covered by Article 107(1) TFEU, this would have led to unequal treatment of participating and non- participating Member States, since the SRF contributions and ESM DRI are only available for banks within participating Member States. These forms of supranational support within the Eurozone would then not be subject to Article 107(1) TFEU, while national financial support during resolution is covered by Article 107(1) TFEU.1

The new role that the Commission has gained as a result of the applicability of the State aid regime for the banking sector on supranational EPFS comes along with the interaction of different actors. This is the SRB in respect of the SRF, as discussed in section 6.2.1.1, and the ESM in respect of the ESM DRI. This may change the dynamics of the State aid procedure. In any event, as a result of the fact that both the SRF and the ESM DRI have been made subject to the State aid regime for the banking sector, there is no discussion as to whether these instruments qualify as State aid.