The European Commission has announced its approval to the aid granted by Belgian, French and Luxembourg governments for the resolution of the financial group Dexia. According to the Commission's decision, this plan will allow the residual group to exit from the market altogether.

The orderly resolution plan for the Dexia group includes the sale of various group entities as well as the resolution of the residual part of the group. More specifically, it provides for the sale of the subsidiary of the Dexia group, DMA (Dexia Municipal Agency), and the restructuring of Belfius, formerly Dexia Banque Belgique.

As pointed out by Commissioner Almunia, responsible for competition policy, the plan will allow the orderly resolution of the group. It provides for Belfius to refocus on its core business of banking and insurance, while DMA will join a new banking structure in France owned by the French state, the Caisse des Depots et Consignations and the Postal Bank. These measures involve an additional aid, mainly consisting on a final refinancing guarantee of €85 billion and the recapitalization of Dexia and DCL worth €5.5 billion.

With this decision, the Commission reaffirms the provisional approval of the state aid granted to the group Dexia. The Commission has concluded that these measures are compatible with EU state aid rules for banks during the financial crisis. The decision is based on the fact that the residual group will exit the market altogether and no longer develop any competitive activity.