EU State Aid Rules and the Lender of Last Resort: Challenges to the notion of state aid in the wake of the financial crisis
Title: EU State Aid Rules and the Lender of Last Resort: Challenges to the notion of state aid in the wake of the financial crisis
Author: KRISSINEL, Kira
Citation: Florence, European University Institute, 2010
Series/Report no.: EUI LLM theses; Department of Law
This paper will attempt to elucidate the connection between LOLR theory and the current state aid regime as it applies to NCB intervention in the form of ELA and consider whether the two are compatible. Part I provides a brief overview of both the ‘no crisis’ and the ‘in crisis’ legal frameworks. Part II then ventures into the realm of LOLR theory, tracing back its origins and development recalling in particular its inceptions in late 19th Century and the subsequent academic debate as to the particular requirements for LOLR support. A parallel is then drawn between LOLR theory and state aid rules as they apply to ELA. Part III considers state aid rules and their application in the banking sector, specifically in relation to ELA, in more detail. An attempt to outline and analyse some of the problems with the approach to ELA under EU state aid rules is made. Part IV concludes, by making several suggestions on how the present regime could be clarified so as to avoid confusion in the area and promote legal certainty for central banks and governments.
Subject: Government aid; European Union countries; Financial crises; Government policy; Subsidies; Law and legislation; European Union countries
LC Subject Heading: Government aid -- European Union countries; Financial crises -- Government policy; Subsidies -- Law and legislation -- European Union countries
Defense date: 23/11/2010; Supervisor: Prof. Heike Schweitzer, University of Mannheim
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