Brussels, 18/10/2011 (Agence Europe) - On 17 October, the European Commission temporarily approved the nationalisation of Belgium's second largest bank Dexia Bank Belgium (DBB) through its acquisition by the Belgian state for €4 billion to be paid to Dexia SA. The Commission acknowledges that the measure is necessary to preserve financial stability. However, at this stage, the Commission is not able to conclude whether the acquisition by the Belgian state complies with EU state aid rules. Belgium has six months to notify a new restructuring plan for the bank.
The Commission's in-depth investigation will assess whether the acquisition price contains state aid, and if so, whether the aid complies with EU rules for restructuring aid (particularly long-term viability of the entities continuing business activity, whether there would be adequate burden sharing by all involved of the restructuring costs and whether there would be sufficient measures taken to compensate for the distortions of competition).
The acquisition by the Belgian state of DBB is an integral part of a restructuring package for Dexia SA envisaged by Belgium, France and Luxembourg, potentially involving state aid. The purchase of DBB cannot be isolated from the rest of the package, which needs to be assessed under state aid rules by the Commission before it is carried out. (FG/transl.fl)