EU to rule on Alstom bailout in June
BRUSSELS, March 12 (AFP) - The European Commission will decide by June 21 whether a French government bailout package for embattled engineering giant Alstom complies with EU state aid rules, an EU source said Friday.
Alstom, whose share price plunged earlier this week after a profit warning, wants Brussels’ green light for a plan giving it two billion euros (2.3 billion dollars) in short, medium and long-term assistance.
But the EU’s executive arm is studying plan to see if it breaches EU state aid rules. “We’ve said we will take a decision in spring. The last day of spring is June 20,” said a source close to the dossier.
Last year the French giant, which notably makes rolling stock for France’s high-speed TGV trains and cruise liners, unveiled a restructuring plan including the sale of assets worth three billion euros.
It also called for the elimination of 7,000 jobs worldwide – including 5,000 in Europe – by 2005.
Subject: France news