Informations and abstract
Keywords: Banking Union, State aid, bail-in, DGS directive, European Commission
This paper compares EU rules on Banking Recovery and Resolution with EU State Aids control. According to several European Commission decisions, the financial support granted by Deposit Guarantee Schemes (DGSs) to a bank may fall within State Aids Control Rules. However, the Tercas Saga reveals some aporias in EC legal reasoning. This paper argues that, through the comparison of Article 11 of DGS directive and Article 32 of Banking Recovery and Resolution Directive (BRRD), the EC can apply state aid control over DGS financial support, driving the level playing field in the internal market, complying with Banking union rules.