Europe bail-out aid fails to save jobs

The European Commission’s Directorate General for Competition has published in February 2010 an independent report by Oxera examining the impact of financial distress on failing firms’ output and employment, as well as the broader consequences of distress at the industry and regional level.

The objective of the study is to better understand the drivers and implications of financial distress, and to inform what might happen to large European firms in financial difficulty in the absence of state support.

European Commission: Should aid be granted to firms in difficulty? A study on counterfactual scenarios to restructuring state aid, December 2009 http://www.oxera.com/cmsDocuments/Restructuring%20state%20aid.pdf

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