Press Release: State aid: Commission approves temporary prolongation of guarantee granted by Belgium, France and Luxembourg on Dexia’s debt

The European Commission authorised, under EC Treaty state aid rules, the temporary prolongation of the guarantee jointly granted by Belgium, France and Luxembourg on the debt of Dexia. The Commission found that the prolongation of the measure, previously authorised by the Commission in November 2008, is justified by the funding situation of the group and its systemic importance for the economies of the three Member States, is in line with previous practice on such measures and is compatible with Article 87.3.b of the EC Treaty (which allows aid that is an appropriate, necessary and proportionate means of remedying a serious disturbance in Member States' economies). However, the prolongation is limited to four months (until the end of February 2010), by which time the Commission intends to reach a final decision on the compatibility with the rules on restructuring aid of the overall state aid package granted to Dexia. This package is currently the subject of an in-depth investigation opened in March 2009.