Court strikes down deal for Arco shareholders in Dexia

Up to 800,000 people risk losing some of their savings after the advocate-general of the European Court of Justice (ECJ) in Luxembourg handed down an opinion declaring that a state guarantee given by the federal government in 2009 was against EU law.

The clients are shareholders in Arco, the investment section of the Union of Christian Workers ACW, now part of Beweging.net. ACW was a major investor in Dexia Bank when it collapsed in 2011. Many small investors lost their money in the crash, but Arco shareholders, known as “co-operants”, benefited from a previous decision by the government to extend the general state guarantee on savings to investments in Arco.

Lawyers for the shareholders who had lost their stake took the case to the Council of State, which referred a question to the Constitutional Court in 2013. From there, it went to the ECJ (pictured).

The advocate-general has produced a negative opinion, which is not binding on the court, but which is followed more often than not. A final ruling by the full court is not expected for some months. At that point, the Constitutional Court will reply to the Council of State, which can then issue its own judgement. The whole process could take as long as two years.

“The government will study the advice, and talks will take place once the definitive ruling emerges,” said federal finance minister Johan Van Overtveldt.

Last month Beweging.net said it would be prepared to provide aid to the co-operants. “If a plan can be worked out, we would be prepared to co-operate constructively,” said chair Patrick Develtere. “The government has promised a solution, and we’ve said we would make a contribution.”

Photo: Cedric Puisney/Wikimedia