The study of State aid rules for the assessment of State guarantees on loans (the 'Guarantee Communication') has been launched by the European Commission.

The initiative consists of:

1. a public consultation to gather views from all stakeholders (including individuals or universities) on the Guarantee Communication;
2. consulting experts for feedback from stakeholders directly involved in or affected by the provision of State guarantees or with relevant expertise in the field of credit risk (e.g. Member State authorities, market participants or non-financial companies);
3. a request for information addressed to Member States in order to obtain consolidated data and information on the actual use of the Guarantee Notice; and
4. a call for evidence for feedback on the main objectives of the evaluation, its scope and context.

The Guarantee Notice provides:

1. detailed guidance on how to calculate the amount of aid corresponding to a State guarantee;
2. simplified rules for small and medium-sized enterprises, including pre-defined 'safe harbour' premiums, and
3. guidance on how to design non-aid guarantee schemes for companies of all sizes.

By providing guidance on the assessment of State guarantees under EU State aid rules, the Guarantee Communication aims to facilitate access to finance for businesses, in particular small and medium-sized enterprises, and to limit undue distortions of competition. The Commission considers it necessary to assess the Communication on State guarantees because, since its last revision in 2008, capital requirements have increased, market conditions and risk management practices have evolved and Member States have developed various methodologies for granting State guarantees.

The Commission will now assess whether the Communication on State guarantees has achieved its objectives. At the same time, whether it remains fit for purpose. An external contractor will help the Commission. It will conduct technical analysis of the information. Information provided by Member States in response to the request for information. The evaluation will also build on the experience gained by the Commission in enforcing State aid rules in this area.

All interested parties may submit their views and reply to the questionnaires. Opinions are submitted in any official EU language on the Commission's 'Have your say' portal. Also on DG Competition's consultation website. The deadline is set for 21 November 2022. The Commission will use these observations when assessing the Guarantee Communication. It then intends to publish the results of this evaluation in the first half of 2024.