ANNOUNCED AS TEMPORARYYes
Bailout (capital injection or equity participation)
Greece notified to the Commission on 14 November 2008 a package of measures designed to ensure the stability of the Greek financial system - State Aid N 560 /2008.
The proposed measures concern the Greek law ''For the enhancement of liquidity of the economy in response to the impact of the international financial crisis" and its implementing laws. Thus, in response to the ongoing exceptional turbulence in world financial markets, Greece intended to bring forward a comprehensive package of measures ("financial support measures") designed to ensure the stability of the Greek financial system.
These measures can be subdivided into the following categories:
A. Bank Recapitalization Scheme
B. A Wholesale Funding Guarantee Scheme
C. Support through the issuance of Greek State special purpose securities to credit institutions ("the Bond Loan Scheme")
Beneficiaries of the scheme are credit institutions authorized to operate in Greece by license from the Bank of Greece including subsidiaries of foreign institutions.
The Commission stated that the scheme constitutes aid to the credit institutions concerned, pursuant to Article 87 (1) EC and gave the following assessment:
"The recapitalisation, the guarantee and the bond loan to the credit institutions allow the beneficiaries to secure the required capital as well as liquidity on more advantageous conditions than would otherwise be possible in the light of the prevailing conditions in the financial markets. This gives an economic advantage to the beneficiaries and strengthens their position compared to that of their competitors in Greece and other Member States and must therefore be regarded as distorting competition and affecting trade between Member States. The advantage is selective since it only benefits the beneficiaries of the scheme and is provided through State resources." (par. 48 of the letter from the EC to Greece - Brussels, 19.11.2008 C(2008) 7382).
Article 87(3)(b) of the EC Treaty enables the Commission to declare aid compatible with the Common Market if it is "to remedy a serious disturbance in the economy of a Member State." This aid has to be applied restrictively and must tackle a disturbance in the entire economy of the Member State according to the interpretation of the Article 87(3)(b) by the Court of First Instance.
The Commission referred to its Communication on the financial crisis and concludes that the Measure complies with the conditions laid therein. Therefore, despite the measure constituting State aid pursuant to the Article 87(1) EC, it is compatible with the Common Market according to the Article 87(3)(b) EC Treaty. The Commission raises no objections against the measure at issue and authorizes it as emergency intervention in the face of the current financial crisis (par. 50-86 of the letter).
Prolongation and amendments of the Support Measures for the Credit Institutions in Greece - State Aid n° N 504/2009 + N 163/2010 + SA.32767 (2011/N)
On 2 September 2009, Greece notified, following a number of pre-notification exchanges, a request to prolong and amend the aforementioned scheme.
The Commission considered that the scheme, with the notified amendments, remains state aid within the meaning of Article 87 (1) EC. (par. 22 of the letter from the EC to Greece - Brussels, 18.09.2009 C(2009)7062)
On 6 May 2010, Greece notified an amendment of the Guarantee scheme, which is currently authorised until the end of June 2010. The amendment solely concerns an increase of the ceiling but not a prolongation of the granting period. (par. 2 of the letter from the EC to Greece - Brussels, 12.5.2010 C(2010) 3125 final)
On 23 March 2011, Greece notified an amendment of the Guarantee Scheme, which was currently authorised until the end of June 2011. The amendment consists in an increased ceiling of the Guarantee Scheme with an additional tranche amounting to EUR 30 billion.
The notified amendment does not affect the Commission finding on previous decisions. The Schemes remain State aid within the meaning of Article 107(1) TFEU.
Additional prolongations of the Support Measures for the Credit Institutions in Greece - State Aid N 690/2009 + N 260/2010 + SA.31998 (2010/N) + ... + SA.36956 + SA.37958
On 14 December 2009, Greece notified the second prolongation of its support measures for the credit institutions in Greece until 30 June 2010, followed by a third prolongation on 18 June 2010, notifying the extension of the support measures until 31 December 2010.
On 26 November 2010, Greece notified the extension of the support measures until 30 June 2011.
On 9 June 2011, the Greek authorities notified a (fifth) prolongation of the support measures until 31 December 2011.
On 21 December 2011, the Greek authorities notified an extension of the measure until 30 June 2012.
On 2 July 2013, the EC authorised an extension until 31 December 2013.
On 14 January 2014, the EC authorised an extension until 30 June 2014.
On 26 June 2014, the EC authorised an extension until 31 December 2014.
On 14 January 2015, the EC authorised an extension until 30 June 2015.
On 29 June 2015, the EC authorised an extension until 31 December 2015.
On 18 December 2015, the EC authorised an extension until 30 June 2016.
On 29 June 2016, the EC authorised an extension until 31 December 2016.
On 19 December 2016, the EC authorised an extension until 30 June 2017.
On 3 July 2017, the EC authorised an extension until 30 November 2017.
On 6 December 2017, the EC authorised an extension until 31 May 2018.
The Commission has decided to consider all these measures compatible with the internal market since they do not alter the previous decisions taken.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
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