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Environm Ciencia, Tecnologia y Economia

latest Scoreboard reviews Member States’ action to fight economic crisis

Posted by benjamin-nicolau en abril 10, 2009

latest Scoreboard reviews Member States’ action to fight economic crisis

A special edition of the State Aid Scoreboard just published by the European Commission focuses on measures adopted by Member States and reviewed and coordinated by the Commission in the current financial and economic crisis.

In order to safeguard financial stability, Member States have set up guarantee umbrellas, risk shields and recapitalisation measures for the financial sector with an overall volume of up to €3000 billion.

Three new Commission Communications provide a clear framework setting out the conditions under which these unprecedented measures can be taken while preserving the integrity of the Single Market and avoiding harmful subsidy races between Member States. In addition, the December 2008 Temporary Framework for state aid measures provides guidance to Member States how companies and jobs in the real economy can be best supported without excessive distortions of competition. Competition Commissioner Neelie Kroes commented: “The past six months have shown that state aid control plays a key role in tackling the challenges of the economic crisis in a coordinated way across Europe.

The EU’s tried and tested state aid rules have clearly been part of the solution. Our intervention and – sometimes tough – conditions have prevented Member States from falling into the trap of protectionism and exporting their problems to other Member States, while allowing Member States to avoid financial meltdown. The responsibility now lies with the financial sector to clean up their balance sheets and restructure to ensure a viable future.” Financial crisis Coordinated action by Member States and the Commission has allowed the rapid implementation of adequate support schemes and ad hoc measures to meet the financial crisis challenge without undue distortions of competition. Since September 2008, the Commission has taken more than 50 decisions, in often record speed.

This has contributed to maintaining financial stability and restoring confidence in the financial sector and in the economy as a whole, while preserving incentives for appropriate risk taking and competition in the future. State aid control has been essential to avoid subsidy races and to safeguard a level playing field for companies in the Single Market. It has safeguarded the interests of sound financial institutions able to operate without state aid. The special Scoreboard edition shows that the overall maximum volume of crisis measures in support of financial institutions, so far approved by the Commission, amounts to around €3000 billion.

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