The application of Article 107(3)(b)TFEU in systemic banking crises: The need for a new State Aid Crisis Framework for the European Banking Sector in light of the European Commission’s interpretation of the “serious disturbance” exemption as a response to the 2008 financial crisis.

Abstract

The 2008 financial crisis illustrated the problems that arise when EU State aid rules are relaxed and Member States are allowed to prop up ailing banking sectors. Member States in effect become subject to a constant drain on their resources as the threat of greater financial instability becomes omnipresent. The objective of this Thesis is to establish a new future Crisis Framework so that Member State resources are better protected in the event of a new crisis. This will be achieved via utilising pre-existing State aid rules and principles in conjunction with certain economic and organisational theory principles.