European state aids in the current financial crisis

Abstract

The paper presents the aid measures and the types of state aid proposed by the European Commission for the current financial crisis, which assumes extraordinary policy responses, “but for a limited period”. The new framework is a temporary one and it will be applicable only until 31 December 2010. These European Union initiatives, taken at the end of 2008, were adjusted at the beginning of year 2009, by regards aid in the form of guarantees. The changes in the temporary framework contain additional State aid measures to facilitate the companies’ access to finance. The unblocking of the credit flow should allow Europe to come out of the recession, even stronger and prove confidence in the Commission.