Brussels, 07/06/2012 (Agence Europe) - On Wednesday 6 June 2012, the European Commission approved a €10 billion increase in the cap on the temporary guarantee granted by Belgium, France and Luxembourg for Dexia's refinancing needs (Dexia SA and Dexia Crédit Local - DCL)), thus raising the cap to €55bn, as requested by the three countries (see EUROPE 10628). The Commission has approved the extension until 30 September 2012 in order to ensure financial stability because the bank runs the risk of going bankrupt in the immediate future and is so big that it would seriously damage the economy, but the Commission expressed “serious doubt” about the measure's compatibility with EU state aid rules because Dexia has already received massive public bailouts (recapitalisation of some €6bn, €5.2bn of which is considered to be state aid, and guarantees for bank refinancing and assets that have lost their value), along with doubts about any further aid if the bank is wound up. The Commission will make the final decision after examining Dexia's wind-up plan (see EUROPE 10625). (FG/transl.fl)