In the wake of the credit crisis, the Belgo-French banking and insurance group Dexia was granted a joint relief package by the Belgian, French and Luxembourg Governments. This package consisted of (i) a capital injection of EUR 6.4 billion, (ii) a State guarantee of EUR 150 billion and (iii) an additional guarantee of USD 16.9 billion in view of the sale of Dexia's troubled US subsidiary, FSA.
The European Commission had previously authorised this relief package on the condition that a restructuring plan ensuring Dexia's further long-term viability would be notified to the Commission. The Commission has now announced an in-depth investigation into the restructuring plan with regard to its viability and its possible anti-competitive effects. The current relief package can remain in effect for the duration of the investigation.
Dexia has expressed surprise at the Commission's announcement but has declared that it will cooperate fully with the investigation and is confident of its outcome.