Overview

As a consequence of the current crisis, banks have become much more risk averse in their lending activities than in previous years – despite comprehensive support measures from EU member states. In the real (i.e. not financial) economy, this has led to the oft-cited credit squeeze affecting, in particular, small and medium-sized undertakings (SMEs). Although the financial apparatus provides for sufficient credit capital, the risk surcharge incurred renders conditions more and more unattractive.

The Commission has recognised this problem and since 17 December 2008 has applied a temporary Community framework for State aid measures to support access to finance in the current crisis – temporarily altering the existing State aid rules through 31 December 20102. These measures shall unleash and facilitate bank lending to companies. In this context, the Commission particularly points out that this relaxation of State aid rules will further guarantee investments in environmental projects and, thus, ecologically sustainable growth of the economy.

To read on, please click "view briefing".