BRUSSELS May 2 European Union antitrust
regulators are investigating whether a 7-billion-euro ($9.24
billion) guarantee granted by French authorities to carmaker PSA
Peugeot Citroen complies with state aid rules and also
ensures its long-term viability.
The European Commission said in a statement on Thursday that
the opening of the in-depth investigation would allow third
parties to comment on the case.
"The Commission intends to verify whether the assumptions
underlying the restructuring plan to restore the company's
long-term viability without continued state support are
sufficiently realistic, in particular given the recent trend on
the car market," the EU watchdog said.
France is also providing 85.9 million euros in grants and
repayable advances to Peugeot, which has been hit hardest by the
difficulties in Europe's auto market.
($1 = 0.7580 euros)
(Reporting by Foo Yun Chee; editing by Rex Merrifield)