Abstract

State aids law has become a major subject in its own right. Article 107 of the Treaty on the Functioning of the European Union (TFEU), which lays down the substantive rules on state aid, and Article 108 TFEU, which provides for the procedural rules, form part of the treaty chapter on competition. However, there are now several important pieces of legislation. The first is Council Regulation 994/98/EC, which applies Articles 107 and 108 TFEU. The gist of the regulation is that the Commission is authorized to adopt block exemptions for certain categories of aid. On this basis, the Commission has adopted a number of regulations, which will be discussed in this chapter. The enforcement of the state aid rules by the Commission has been essential in containing the crisis. The Commission efforts have been supplemented by the policies of the European Central Bank, which provided enhanced credit support.