The European Commission has 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 is 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. The Commission has approved the guarantee in principle, but as part of its in-depth investigation, the Commission reserves the right to analyse in greater detail certain aspects of the contractual relations between Dexia and the Member States in respect of this guarantee. This analysis will be carried out taking into account the new Commission communication on the treatment of impaired assets that was adopted on 25 February 2009. This case is the first application of the new communication.