New IMFS Working Paper regarding government support for banks during the financial crisis

In a new Working Paper IMFS researcher Patrick Tuschl focuses on the support measures for German banks during the financial crisis, investigating how similar state aid can be rated in the future.

More than 18 billion euros the Commerzbank had received as guarantees, capital injection or participation by the government in the course of the financial crisis. Also Hypo Real Estate, WestLB, SachsenLB, and IKB obtained support from the state. The EU approved the state aid. In principle, state aid is regarded as an economic advantage, thus, being prohibited. In his Working Paper, Tuschl examines the legal basis of state aid in terms of the EU laws, pointing out the exemptions the EU Commission referred to in practice.

IMFS Working Paper No. 96
Patrick Tuschl
"Rechtsgrundlagen für die Vereinbarkeit von Finanzhilfen für Kreditinstitute mit dem Beihilferecht der EU im Rahmen der Finanzmarktkrise"
(PDF, 541 KB)