EU To Bailout Out GM Partner PSA - Demands France Restructure Automaker In Return

The European Commission called for PSA Peugeot Citroen (PEUP.PA) to present a restructuring plan within six months in return for approving state aid for the French carmaker's financing arm.

The Commission said it was granting temporary approval for 1.2 billion euros ($1.6 billion) of guarantees for Banque PSA Finance after France offered to guarantee 7 billion euros of its borrowing.

"We expect France to notify to us of a restructuring plan, not just for the banking arm but for the whole PSA group, because this aid also benefits the whole group," a Commission spokesman said.

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