Government aid to Magna-led Opel draws European scrutiny

FRANKFURT: Germany's plan to provide 4.5 billion euros ($6.5 billion) in state aid to Opel yesterday threatened to spark a political storm across Europe over where the carmaker was likely to cut plants and jobs.

Britain said European regulators should ensure that the takeover of Opel by Canadian automotive supplier Magna and its Russian allies did not favor workers in German plants over those in other European countries that host GM factories.

"I think it is important to say that the (European) Commission should not accept anything that looks like a political fix or any linkage between aid and retention of jobs in any specific plant or country," British Business Secretary Peter Mandelson told BBC radio.