EU: Opens In-Depth probe into France’s financing of Areva

European Union antitrust regulators on Tuesday said a full-blown probe has been opened into France’s financial support of beleaguered nuclear group Areva SA’s restructuring plans to ensure the government didn’t give it an unfair advantage.

The European Commission said France notified it of the group’s restructuring plans in April, which includes state aid of around €4 billion ($4.42 billion) in the form of a public capital injection into Areva.

“Given the size and importance of the restructuring of Areva, the commission has to carefully assess that the restructuring plan is sound… Our aim is to ensure a sustainable future for Areva without the need for further government support,” said EU competition chief Margrethe Vestager.

The EU said it was examining whether Areva’s restructuring plans are realistic enough to ensure the company can operate without “constant injections of public funds.” The commission said it also wants to ensure the group sufficiently contributes to the restructuring costs and that France is taking appropriate steps to limit any distortions to competition.

The opening of an investigation isn’t a surprise for the French government, an Economy Ministry official said Tuesday.

“The minister and the commissioner had several meetings since the project was notified in April,” he said. “The investigation is pretty standard procedure. The commission will verify our project respects the EU rules governing state aid and we are confident our project is solid and the outcome will be positive.”

Full Content: The Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.