The Application of the Principles of Restructuring Aid to Banks during the Financial Crisis

[...] do no Harm" In light of these considerations, the golden rule for State aid policy (particularly in these circumstances) must therefore be: "First, do no harm. [...] the Commission's insistence on balance sheet reductions for beneficiary banks beyond what was necessary from a viability perspective has led to additional constraints on lending and may have worsened the credit crunch.