The European Commission announced yesterday that it has begun an inquiry into French state aid for Compagnie des Machines Bull SA, saying that the French government was not entitled under Community state-aid rules to give Bull a $439m loan as an advance on a bigger future injection of aid – Only the starting of a restructuring plan to restore the viability of the company, without affecting competition in a way that would prejudice the common interest, could justify a derogation,, it said, adding that it is now waiting for the French government to come up with a restructuring plan in which it was expected to announce the total amount of aid needed to save the chronically loss-making company; the plan, which involves the privatisation of the loss-making computer company, is now ready to be sent to Brussels, according to newspaper reports quoting French industry ministry officials; there is talk of one or both of Bull’s personal computer plants closing.
