In the EU, support to the real economy on the basis of temporary crisis rules dropped to more than 50% in 2011 compared with 2010
The European Commission's 2012 State Aid Scoreboard revealed that the volume of national support to the financial sector actually taken by banks between October 2008 and 31 December 2011 amounted to around €1.6 trillion (13% of EU GDP). Moreover, reflecting both a low uptake by companies and the budgetary constraints of most EU Member States, support to the real economy on the basis of temporary crisis rules dropped to €4.8 billion in 2011, a fall of more than 50% compared with 2010.
The European Commission published the 2012 State Aid Scoreboard which showed that between 2008 and 31 December 2011, €1,616 billion, was actually used to support financial institutions. This was composed of liquidity support: €1,174 billion (9.3% of EU GDP) average outstanding State guarantees on banks' funding and other (short-term) liquidity support measures; and measures to support bank solvency: €442 billion (3.5% of EU GDP) in recapitalisation measures and treatment of impaired assets. In August 2012, the GDP in the euro area and the EU fell down by 0.2% during the second quarter of 2012.
United Kingdom (19%), Ireland (16%) and Germany (16%) accounted for nearly 60% of the total aid used. The bulk (67%) came in the form of State guarantees on banks' wholesale funding. The main support measure used was a one-off subsidy of up to €500,000 per company, which was replaced in 2011 by the normal €200,000 amount that can be granted to a company over three years without prior clearance by the Commission. This was followed by subsidised loan interests or guarantees, reduced interests for environmentally-friendly investments and risk capital aid. The temporary framework expired on 31 December 2011.
Non-crisis aid decreased and was at €64.3 billion or 0.5% of EU GDP. Aid to industry and services amounted to €52.9 billion or 0.42% of EU GDP of which almost 90% was earmarked for horizontal objectives of common interest. Most notably, the Commission observed a greater focus on aid measures for regional development, research, and environmental protection, all of which contribute to the Europe 2020 strategic objectives of smart, sustainable and inclusive growth. Moreover, the Scoreboard further shows that more than €13.5 billion, representing about 85% of the total amount of illegal and incompatible aid, had been repaid by beneficiaries to the granting authority at the end of June 2012. This marks a further improvement as compared to previous years.