Brussels, 15/10/2003 (Agence Europe) - On Wednesday, the European Commission confirmed that it was extending the review proceedings opened on Alstom due to the latest developments that have occurred in this connection. On 17 September, the Commission began an indepth examination on aid amounting to EUR 3.2 billion for the French company, Alstom, and at the same time issued the threat of a suspension order if France should continue to implement a last financial measure, namely the State's participation in the capital of the business, an operation that is both irreversible and unacceptable for the Commission. On 26 September, France announced a new aid plan in favour of Alstom after intense negotiation with the European Commission (see EUROPE of 23 September, p.8). These new measures will have two consequences: "not only the form of the irreversible capital injection of the State has changed but also the total amount of State aid has increased by EUR 1.1 billion", the Commission said. The extended probe will therefore cover aid from the French State amounting to a total of EUR 4.275 billion, namely: 1) the capital subscription by the State of EUR 300 million replaced by long term funds for the same amount, redeemable in shares only if the Commission approves of such redemption; 2) the State will provide an extra EUR 200 million in a long-term subordinated loan to Alstom; 3) the short term liquidity grant of EUR 300 million is increased by another EUR 900 million; 4) the State will provide mid-term funds of EUR 300 million; and 5) the State will provide a 65% counter guarantee on bank guarantees amounting to EUR 3.5 billion, that is EUR 2.275 million. The Commission stresses that, although it has authorised the form of the plan proposed, it has not approved the measures themselves at this stage. It will not be until after the review procedure that it will be able to announce a decision, a procedure that will last at least six months.