Press Release: State aid: Commission opens in-depth investigation into restructuring of Dexia; authorises certain urgent measures

The European Commission started an in-depth investigation under EC Treaty state aid rules to establish whether the restructuring plan for the Dexia group will restore the group's long-term viability. The plan was accompanied by a capital injection of €6.4 billion, announced in September 2008, and maintenance of a guarantee of up to €150 billion granted jointly by Belgium, France and Luxembourg, which was earlier approved as rescue aid by a decision of 19 November 2008. The Commission also authorised a guarantee for a portfolio of assets for a total value of $16.9 billion extended by the Belgian and French governments, a measure deemed indispensable for the sale of FSA, Dexia's US subsidiary, which is a prerequisite for the bank's return to viability. In accordance with the decision of 19 November 2008, the Member States have notified the Commission of a restructuring plan for the bank. The opening of an in-depth investigation gives interested parties an opportunity to comment on the proposed measure. It does not prejudge the outcome of the procedure and the measures approved as rescue aid remain valid while the plan is being studied.