On Monday 13 October, the European Commission took the view that the State aid rules relating to State guarantees remain “relevant” as they enhance legal certainty, even if certain improvements and simplifications are “necessary”.
According to a working document from the EU institution, the June 2008 Communication (COM(2008)155) on State guarantees provides added value in that: - it provides a predictable framework for approving the guarantee methods developed by Member States; and - it describes the conditions for ensuring that a State guarantee is granted on market terms and does not constitute undue State aid.
The Commission’s assessment also shows that there is room for improvement. When estimating the amount of aid, the parameters to be taken into account (interest rates, capital requirements applicable to lenders) need to be updated to avoid the premium charged for a State guarantee being too low, except for certain guarantees granted to SMEs.
Furthermore, complying with the rules on State guarantees can be complex and costly, particularly for smaller measures and smaller Member States, the Commission notes. Also, reliable data on approved guarantees remains insufficient.
Finally, consistency between the Communication and the broader State aid framework should be improved, with the EU institution noting “inconsistencies” regarding the use of market benchmarks and mechanisms for excluding aid to lenders.
In the first quarter of 2026, the Commission will draw up a revision of the 2008 Communication, which will then be submitted for consultation with stakeholders. The aim is to finalise the revised framework for State guarantees by June 2027.
Read the Commission’s assessment: https://aeur.eu/f/iyl
See a specific external study published on the same day: https://aeur.eu/f/iy2 (Original version in French by Mathieu Bion)