Updated: June 20, 2012 (Initial publication: June 14, 2012)

Breaking news

On 6 June 2012, the European Commission has extended the authorization given to France, Belgium and Luxembourg to bring their State guaranty to Dexia Bank SA and DLC. Further, the Commission agreed to raise the ceiling of the guaranty, joint but non several, of EUR 15 billion which brings the ceiling allowed to EUR 55 billion. But the permission is only until September 30. This might coincide with the time where the Commission will take a position on the plan of "orderly resolution" of this systemic bank. It justifies its flexibility itself in its exemption from the prohibition of State aids, by the fact that it is a systemic bank and that a resolution plan will be submitted soon, but it raises in advance competition problems.This justifies all the more draft texts on the mechanisms which must be specific to the systemic failing financial institutions.