Author(s): Rym Ayadi, Willem Pieter De Groen, Peter Thyri
Subject: State aid
Date published: February 25, 2015

Co-authored by professor Rym Ayadi, IRCCF Director, this study assesses whether lending to SMEs could and should be one of the conditions for a bank to qualify to receive State aid. The assessment consists of a legal and an economic part. In the legal part, the possibilities to apply the conditionality to State aid are explored. The economic part consists of a qualitative and quantitative assessment at both the member state- and bank level. The results could provide policy-makers with measures that reduce the obstacles for SMEs in case banks are bailed out, as well as to maximize the social return on taxpayers’ money. This study was prepared by Policy Department A at the request of the Committee on Economic and Monetary Affairs (ECON).

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