Commission invites comments on draft new rescue and restructuring State aid guidelines

The European Commission has launched a public consultation on the draft of new Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty ('Rescue and Restructuring Guidelines'). The new version will align the existing Guidelines with current social, market and technological conditions. The Commission invites Member States and all other interested parties to comment on the draft by 4 September 2026.

The revision of the Rescue and Restructuring Guidelines

The Rescue and Restructuring Guidelines, which were first adopted in 2014, set out the conditions under which State aid to non-financial companies in difficulty may be allowed under EU State aid rules.

The Commission proposes the following main changes, which aim to reflect today's changed economic context:

• Including the steel sector in the sectoral scope of the Guidelines. This change would give Member States more room to support ailing steel plants subject to adequate restructuring;
• Removing certain types of innovative startups from the solvency test of the “undertaking in difficulty” definition. This change would take into account that initial accumulated losses are not uncommon for innovative startups and do not necessarily indicate an imminent risk of failing; and
• Including some types of hybrid financial instruments in the determination of equity to assess whether a company is in difficulty. This change would introduce more flexibility into the definition of "undertaking in difficulty" and allow for a better assessment of the actual risk of failing.

The public consultation follows a Call for evidence and an initial public consultation launched in August 2025. The contributions received from different stakeholders have informed the drafting of the text published today.

Next steps

In addition to the consultation launched today, the draft Rescue and Restructuring Guidelines will be discussed in a meeting between the Commission and Member States. The public consultation will close on 4 September 2026. This process ensures that Member States, as well as other interested parties, have several opportunities to comment on the proposal. The adoption of the revised Rescue and Restructuring Guidelines is planned for the end of 2026, before the current Guidelines expire on 31 December 2026.

Background

Under Article 107(3)(c) of the Treaty on the Functioning of the EU, aid may be considered compatible with the internal market if the aid facilitates the development of certain economic activities or of certain economic areas, where it does not adversely affect trading conditions contrary to the common interest. The Rescue and Restructuring Guidelines set out the conditions under which State aid for rescuing and restructuring of non-financial undertakings in difficulty may be found compatible with the internal market. Currently, all sectors can benefit from aid under the Guidelines, except the coal and steel sectors and the financial sector. The Guidelines provide for three types of aid: rescue aid, restructuring aid, and temporary restructuring support. To determine whether the Guidelines are applicable, they introduce the notion of an "undertaking in difficulty". Only companies which fulfil the criteria of the "undertaking in difficulty" definition can receive aid under these Guidelines.