Brussels, 21/08/2002 (Agence Europe) - On Wednesday the Commission decided to open a formal investigation procedure into the proposed restructuring aid to Société Nationale Corse-Méditerranée (SNCM). The French Government plans to recapitalise the company (SNCM operates maritime services between Marseille, in the south of France, and the island of Corsica) with an injection of €76 million. So far the main points of France's restructuring plan consist of an 18% reduction in services, a 12% cut in staff and the sale of certain ships. The Commission has doubts about the efficacy of the proposed measures and their ability to return the company to viability without further government aid, as well as the level of competition that exists between Corsica and the continental French and Italian coastlines in the transport of passengers. The Commission will therefore examine the restructuring plan to check whether the aid proposed is compatible with European state-aid rules. On 17 July the Commission approved a €22.5 million refundable rescue loan for SNCM (see EUROPE 18 July p 15) in which rescue loans were designed to keep afloat the firm, while a long-term restructuring plan was being devised.