Abstract

The current rules on the management of bank crises, enacted in the aftermath of the global financial crisis, provide that State aid is a last resort and establish strong limits on its use to reduce the cost payed by taxpayers. The article shows that the constraints on the use of public resources in the management of banking crises are not consistent with the general framework established by the Treaty of the European Union and can lead to inefficient crisis management. The progress achieved in the institutional integration of the banking sector leads us to rethink the State aid rules applicable to banking crises.