EU welcomes 'stabilising effect' of Dexia deal

10th October 2011, Comments 0 comments

EU anti-trust chief Joaquin Almunia welcomed Monday the "stabilising effect" of a deal between Belgium, France and Luxembourg to rescue Dexia, the first bank to fall victim to the eurozone debt crisis.

The EU executive, responsible for ensuring commercial fair play to protect the single European market, "takes note of the announcement made by the French, Belgian and Luxembourgish authorities of a new restructuring plan for Dexia," Almunia said in a statement.

"It welcomes the stabilising effect of the agreement on the banking group and for the financial system as a whole."

The European Commission's competition authorities under Almunia are already monitoring promises made in exchange for state aid granted to Dexia when it was bailed out in 2008 and will again have to approve the latest restructuring.

Almunia said the anti-trust decision will be taken based on the usual criteria, citing long-term viability; fair burden-sharing of the restructuring and ensuring that "sufficient measures are taken to address competition distortion."

© 2011 AFP

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