Towards more stability, competitiveness and predictability in the financial sector – the relevance of EU/EEA State aid rules and their correct application
In Autumn 2008, the financial crisis hit Europe. In order to prevent the systemic crisis, the EU/EEA Member States granted huge amounts of state aid to banks that were "too big to fail". This was approved by the European Commission and the EFTA Surveillance Authority that are responsible for State aid control in EU/EEA. While these institutions are still dealing with financial crisis aid cases on a daily basis, it is now time to ask more general questions. How can State aid rules contribute to rebuilding the financial sector for the future? How can they make it more robust?
Main content
The goal of this project is to provide some answers in this regard, and thus contribute to an on-going discussion on the financial sector. The project will analyse how State aid rules should be applied in the financial sector to safeguard its efficiency, competitiveness and equal terms and conditions for all market operators. This analysis entails two individual research projects: a Post.doc.-project and a PhD project (self-financed).
Subprojects
The Post.doc.-project will investigate the applicability and application of the Market Economy Investor Principle (MEIP) to state measures granted in the financial sector. Under the MEIP, the state intervenes in the market in the same way as a rational, profit-oriented market operator would in similar circumstances under normal market conditions. The financial crisis raised new questions concerning the MEIP and its role in the rebuilding of the financial sector.
The post.doc.-project is driven by Malgorzata Cyndecka
The PhD project seeks to clarify the legal implications of repayment of aid that was granted in the form of a state guarantee. Such measures create a special triangular relation between the state, the aid recipient and the financial institution. This poses certain civil law challenges. As the procedure of aid recovery is governed by national rules, one must examine and clarify the implications of enforcing the EU/EEA State aid law to the Norwegian legal system.
The PhD-project is driven by PhD candidate Øyvind Røed
About the project members
Leader of the project, Ronny Gjendemsjø, is since 2012 leading the research group for Competition and Marked Law together with peer Christian Franklin. Gjendemsjø is also, since 2013, one of three people leading the Bergen Center for Competition Law and Economics (BECCLE)
All project members are active members of the BECCLE cooperation where they contribute at seminars and are doing extensive publishing activities.
About the project
A research project at The Faculty of Law, financed by The Finance Market Fund at NRC.
Leading the project is Ronny Gjendemsjø.
