Brussels studies revision of state aid rules for struggling banks in the EU
The European Commission has launched a public consultation on revising state aid rules for struggling banks in the EU, aiming to safeguard financial stability and minimise taxpayer exposure. The initiative seeks to modernise and simplify existing rules to reflect regulatory and economic developments, particularly those resulting from the recent reform of the Crisis Management and Deposit Insurance framework. The revision aims to ensure consistent treatment of all types of state aid measures in cases of bank failure prevention, resolution, or liquidation. Stakeholders can submit their contributions until 14 April 2026. The current rules, last updated in 2013, are considered outdated and not fully aligned with the current banking crisis management framework, which now prioritises resolution—where losses are borne by shareholders and creditors—over state bailouts.
