Assessing the European Banking Sector Bailout Plans
In response to a major financial crisis, European governments have put in place measures for the recapitalisation of the banking sector and the shoring up of its liquidity.
These bailout plans pose problems for the European Union, founded as it is on the resumption of market competition not distorted by intervention on the part of its member states. So, even in emergencies, the transactions realised as part of these bailout plans must, to conform to market principles and the European Commission directives on competition, be realised at market prices. In other words, support is permissible, but subsidies are not.
| Type: | Position paper |
|---|---|
| Date: | le 04/12/2008 |
| Extra information : |
For more information, please contact Séverine Anjubault, EDHEC Research and Development Department [ severine.anjubault@edhec.edu ] |
| Research Cluster : | Finance |
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About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the top 15 European business schools. Fully international and directly connected to the business world, EDHEC is a school for business, rather than a business school, where excellence in teaching and research focuses on innovation to stimulate entrepreneurship and creativity. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching philosophy, inspired by its award-winning research activities, focuses on “learning by doing”.
