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France: Carmaker’s $9B state aid use probed by Commission

By  |  May 2, 2013
France: Carmaker’s $9B state aid use probed by Commission

The use of more than $9 billion in European state aid by carmaker PSA/Peugeot-Citroen with intent to restructure the company is now being investigated by the European Commission not only to determine whether the restructuring is “realistic,” but also to probe whether the use of the money is anticompetitive. According to reports, the Commission is looking at how the company is using $9.24 billion given to the company in state aid; the company intends to re-track its operations to become financially viable, but the Commission must first determine whether the plans are “sufficiently realistic” considering a struggling car market. Reports say France has been hardest-hit in Europe’s car market woes; the nation will also give PSA/Peugeot Citroen more than $112 million in state aid. France’s Finance Minister Pierre Moscovici argued in a statement that the use of the aid is in line with European Union law.

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